Zerify (ZRFY) 10-Q 14 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 10, 2017
Document And Entity Information
Entity Registrant Name	StrikeForce Technologies Inc.
Entity Central Index Key	1,285,543
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
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		2,319,698,886
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash	$ 147,586	$ 804,130
Accounts receivable	45,656	152,009
Prepaid expenses	5,145	9,265
Total current assets	198,387	965,404
Property and equipment, net	6,602	8,926
Other assets	21,513	22,539
Total Assets	226,502	996,869
Current Liabilities:
Accounts payable	856,476	890,799
Convertible notes payable, net	1,442,100	1,447,100
Convertible notes payable - related parties	355,500	355,500
Current maturities of notes payable, net	1,663,824	1,703,824
Current maturities of notes payable - related parties	742,513	742,513
Accrued interest (including $1,086,376 and $939,654 due to related parties, respectively)	3,826,983	3,805,158
Accrued expenses	9,519	9,539
Accrued salaries and payroll taxes	10,603	10,549
Derivative liabilities	795,365	262,185
Due to factor	209,192	209,192
Total Current Liabilities	9,912,075	9,436,359
Stockholders' Deficit
Common stock par value $0.0001: 5,000,000,000 shares authorized; 2,319,698,886 and 2,319,683,886 shares issued and outstanding, respectively	231,971	231,970
Additional paid-in capital	25,497,590	24,655,363
Accumulated deficit	(36,412,467)	(34,318,823)
Total Stockholders' Deficit	(9,685,573)	(8,439,490)
Total Liabilities and Stockholders' Deficit	226,502	996,869
Series A Preferred Stock [Member]
Stockholders' Deficit
Preferred stock	987,000	987,000
Series B Preferred Stock [Member]
Stockholders' Deficit
Preferred stock	$ 10,333	$ 5,000

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Accrued interest due to related parties	$ 1,086,376	$ 939,654
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Preferred stock series not designated, par value	$ 0.10	$ 0.10
Common Stock, par or stated value	$ 0.0001	$ 0.0001
Common Stock, shares authorized	5,000,000,000	5,000,000,000
Common Stock, shares issued	2,319,698,886	2,319,683,886
Common Stock, shares outstanding	2,319,698,886	2,319,683,886
Series A Preferred Stock [Member]
Preferred Stock, no par value
Preferred Stock, shares authorized	100	100
Preferred Stock, shares issued	3	3
Preferred Stock, shares outstanding	3	3
Series B Preferred Stock [Member]
Preferred Stock, no par value	$ 0.10	$ 0.10
Preferred Stock, shares authorized	100,000,000	100,000,000
Preferred Stock, shares issued	103,335	50,001
Preferred Stock, shares outstanding	103,335	50,001

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statements Of Operations
Revenue	$ 58,736	$ 126,890	$ 142,605	$ 209,599
Cost of revenue	3,754	3,059	6,380	3,964
Gross margin	54,982	123,831	136,225	205,635
Operating expenses:
Compensation	205,529	102,945	353,578	220,718
Professional fees	119,287	83,431	182,481	475,859
Selling, general and administrative expenses	51,654	232,800	893,041	245,562
Research and development	153,751	138,245	278,782	253,220
Total operating expenses	530,221	557,421	1,707,882	1,195,359
Loss from operations	(475,240)	(433,590)	(1,571,657)	(989,724)
Other income (expense):
Interest expense	(91,864)	(239,464)	(182,322)	(926,696)
Debt discount amortization	(4,000)		(4,000)	(34,293)
Private placement costs	(134,495)		(134,495)
Change in fair value of derivative liabilities	10,223	113,636	198,685	(73,009)
Forgiveness of debt	86,140	288,942	86,140	304,785
Income tax expense	(70,866)		(70,866)
Litigation settlement				9,750,000
Fees related to litigation settlement				(4,187,257)
Extinguishment of derivative liabilities				635,600
Other income (expense)	3	(1,778)	19	(1,559)
Other income (expense), net	(204,859)	161,336	(504,209)	5,613,589
Net income (loss)	(680,098)	(272,254)	(2,075,866)	4,623,865
Deemed dividend on convertible preferred stock			(17,778)
Net income (loss) attributable to common stockholders	$ (680,098)	$ (272,254)	$ (2,093,644)	$ 4,623,865
Earnings (loss) per common share - basic and diluted
Basic
Diluted
Weighted average common shares outstanding
Basic	2,319,693,886	2,253,698,380	2,319,690,157	1,404,082,143
Diluted	2,319,693,886	2,253,698,380	2,319,690,157	1,404,615,174

STATEMENT OF CHANGES IN STOCKHO

STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($)	Series A Preferred Stock [Member]	Series B Preferred stock,par value $0.10 [Member]	Common Stock [Member]	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning balance, Shares at Dec. 31, 2016	3	50,001	2,319,683,886
Beginning balance, Amount at Dec. 31, 2016	$ 987,000	$ 5,000	$ 231,970	$ 24,655,363	$ (34,318,823)	$ (8,439,490)
Sale of shares of series B preferred stock, Shares		53,334
Sale of shares of series B preferred stock, Amount		$ 5,333			74,667	80,000
Deemed dividend on convertible preferred stock				17,778	(17,778)	0
Fair value of common stock issued for services, Shares			15,000
Fair value of common stock issued for services, Amount			$ 1	244		245
Fair value of vested options				749,538		749,538
Net income					(2,075,866)	(2,075,866)
Ending balance, shares at Jun. 30, 2017	3	103,335	2,319,698,886
Ending balance, amount at Jun. 30, 2017	$ 987,000	$ 10,333	$ 231,971	$ 25,497,590	$ (36,412,467)	$ (9,685,573)

STATEMENTS OF CASH FLOWS (Unaud

STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income (loss)	$ (2,075,866)	$ 4,623,865
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization	3,351	2,548
Amortization of discount on notes payable	4,000	34,293
Change in fair value of derivative liabilities	198,685	(73,009)
Fair value of common stock issued for interest on conversion notes		386,352
Fair value of common stock issued for services	245	185,888
Fair value of common stock and options for consulting services	749,538	7,917
Forgiveness of debt	(86,140)	(304,785)
Private placement costs	134,495
Extinguishment of derivative liabilities		(635,600)
Changes in operating assets and liabilities:
Accounts receivable	106,353	(107,635)
Prepaid expenses	4,120	(1,853)
Accounts payable	(34,324)	(435,051)
Accrued expenses	(20)	(1)
Accrued interest	107,965	(9,432)
Accrued salaries and payroll taxes	54	(576,605)
Net cash provided by (used in) operating activities	(887,544)	3,096,892
Cash flows from financing activities:
Proceeds from convertible note payable	200,000
Proceeds from sale of Series B preferred stock	80,000
Repayment of convertible notes payable	(9,000)	(686,738)
Repayment of notes payable	(40,000)	(544,700)
Repayment of secured notes payable		(310,000)
Proceeds from notes payable		75,000
Net cash provided by (used in) financing activities	231,000	(1,466,438)
Net increase (decrease) in cash	(656,544)	1,630,454
Cash at beginning of the period	804,130	37,153
Cash at end of the period	147,586	1,667,607
Supplemental disclosure of cash flow information:
Interest paid	74,139	216,053
Income tax paid	70,866
Non-cash investing and financing activities:
Deemed dividend on convertible preferred stock	17,778
Common stock issued for conversion of debt and accrued interest		192,683
Forgiveness of accrued officers salaries recorded as capital contribution		$ 762,275

Organization and Summary of Sig

Organization and Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Note 1 - Organization and Summary of Significant Accounting Policies	StrikeForce Technologies, Inc. (the “Company”) is a software development and services company that offers a suite of integrated computer network security products using proprietary technology. The Company’s ongoing strategy is developing and marketing its suite of network security products to the corporate, financial, healthcare, legal, government, technology, insurance, e-commerce and consumer sectors. The Company’s operations are based in Edison, New Jersey. Going Concern The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the six months ended June 30, 2017, the Company incurred a loss from operations of $1,571,657 and used cash in operating activities of $887,544, and at June 30, 2017, the Company had a stockholders’ deficit of $9,685,573. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on the Company’s December 31, 2016 financial statements, has expressed substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. At June 30, 2017, the Company had cash on hand in the amount of $147,586. In July 2017, the Company issued a convertible promissory note to an investor and received $175,000. Management estimates that the current funds on hand will be sufficient to continue operations through the next six months. The Company’s ability to continue as a going concern is dependent upon its ability to continue to implement its business plan. Currently, management is attempting to increase revenues by redirecting its sales focus from direct sales to domestic and international sales channels, primarily selling through a channel of distributors, value added resellers, strategic partners and original equipment manufacturers. While the Company believes in the viability of its strategy to increase revenues, there can be no assurances to that effect. The Company’s ability to continue as a going concern is dependent upon its ability to continually increase its customer base and realize increased revenues from recently signed contracts. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing. Basis of Presentation-Unaudited Interim Financial Information The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the rules and regulations of the United States Securities and Exchange Commission to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods have been included. The results of operations for the six months ended June 30, 2017 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2017. These financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2016 and notes thereto contained in the Annual Report on Form 10-K of the Company as filed with the United States Securities and Exchange Commission (“SEC”) on April 14, 2017. Estimates The preparation of financial statements in conformity with generally accepted accounting principles 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. Significant estimates include those related to accounting for potential liabilities and the assumptions made in valuing stock instruments issued for services, derivative liabilities, and valuation allowance for deferred tax assets. Actual results could differ from those estimates. Stock Compensation The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board (FASB) whereas the value of the award is measured on the date of grant and recognized as compensation expense on the straight-line basis over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the FASB whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Options granted to non-employees are revalued each reporting period to determine the amount to be recorded as an expense in the respective period. As the options vest, they are valued on each vesting date and an adjustment is recorded for the difference between the value already recorded and the then current value on the date of vesting. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. The fair value of the Company’s stock option and warrant grants are estimated using the Black-Scholes-Merton option pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or warrants, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model, and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods. Derivative Financial Instruments The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. To determine the number of authorized but unissued shares available to satisfy outstanding convertible securities, the Company uses a sequencing method to prioritize its convertible securities as prescribed by ASC 815-40-35. At each reporting date, the Company reviews its convertible securities to determine that their classification is appropriate. Fair Value of Financial Instruments The Company follows the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) for fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3—Unobservable inputs based on the Company's assumptions. The Company is required to use of observable market data if such data is available without undue cost and effort. As of June 30, 2017 and December 31, 2016, the Company’s balance sheets included the fair value of derivative liabilities of $795,365 and $262,185, respectively, which were based on Level 2 measurements. The recorded amounts for accounts receivable, accounts payable, accrued expenses, convertible notes, and notes payables approximate their fair value due to their short term nature. Income (loss) per Share Basic income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share reflects the potential dilution, using the treasury stock method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income (loss) of the Company. In computing diluted income (loss) per share, the treasury stock method assumes that outstanding options, warrants, and convertible preferred stock are exercised and the proceeds are used to purchase common stock at the average market price during the period. Options, warrants, and convertible preferred stock may have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options and warrants. For the six months ended June 30, 2017, the dilutive impact of stock options exercisable into 196,000,001 shares of common stock, convertible Series B Preferred Stock that can convert into 11,575,282 shares of common stock, respectively, and notes payable that can convert into 26,666,692 shares of common stock, respectively, have been excluded because their impact on the loss per share is anti-dilutive. For the six months ended June 30, 2016, the calculations of diluted earnings per share included stock options and warrants exercisable into 340,024 shares of common stock calculated under the treasury method, and convertible Series B Preferred stock that can convert into 175,338 shares of common stock. The following tables set forth the computation of basic and diluted earnings (loss) per share: Six months ended June 30, 2017 2016 Income (Loss) per share – Basic: Income (Loss) for the period $ (2,093,644 ) $ 4,623,865 Basic average common stock outstanding 2,319,690,157 1,404,082,143 Net earnings (loss) per share $ - $ - Six months ended June 30, 2017 2016 Income (Loss) per share – Diluted: Income (Loss) for the period $ (2,093,644 ) $ 4,623,865 Basic average common stock outstanding 2,319,690,157 1,404,082,143 Diluted effect of outstanding stock options, warrants, notes and Series B Preferred stock - 533,031 Diluted average common stock outstanding 2,319,690,157 1,404,615,174 Net earnings (loss) per share $ - $ - Significant Concentrations For the six months ended June 30, 2017, sales to three customers comprised 52%, 13% and 11% of revenues, respectively. For the six months ended June 30, 2016, sales to two customers comprised 48% and 36% of revenues, respectively. At June 30, 2017, two customers comprised 55% and 34% of accounts receivable, respectively. At December 31, 2016, one customer comprised 82% of accounts receivable. At June 30, 2016, two customers comprised 79%, and 10% of accounts receivable, respectively Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, ASU 2016-20, and ASU 2017-05, all of which clarify certain implementation guidance within ASU 2014-09. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. The standard can be adopted either retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company is currently in the process of analyzing the information necessary to determine the impact of adopting this new guidance on its financial position, results of operations, and cash flows. The Company will adopt the provisions of this statement in the first quarter of fiscal 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases. This update will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its financial statements and related disclosures. In July 2017, the FASB issued ASU 2017-11 , Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

Convertible Notes Payable

Convertible Notes Payable	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Note 2 - Convertible Notes Payable	Convertible notes payable consisted of the following: June 30, 2017 December 31, 2016 Secured (a) DART $ 542,588 $ 542,588 Unsecured (b) Convertible notes with fixed conversion features 895,512 910,512 (c) Convertible notes with adjustable conversion features 200,000 - Debt discount (196,000 ) - Total convertible notes $ 1,442,100 $ 1,447,100 (a) At June 30, 2017 and December 31, 2016, $542,588 of notes payables are due to DART/Citco Global. The notes are convertible into shares of the Company’s common stock based on adjustable conversion prices, are secured by all of the Company’s assets, were due in 2010, and are currently in default. The adjustable conversion features of the notes are accounted for as derivative liabilities (see Note 6). DART/Citco Global did not process any conversions of notes into shares of common stock during the six months ended June 30, 2017 or 2016. The Company has been in contact with the note holder who has indicated that it has no present intention of exercising its right to convert the debentures into shares of the Company's common stock. Under the terms of the secured debentures, the Company is restricted in its ability to issue additional securities as long as any portion of the principal or interest on the secured debentures remains outstanding. During the six months ended June 30, 2017, the Company did not obtain DART/Citco Global’s written consent related to any of its financing agreements. (b) Convertible notes payable consisted of 13 unsecured convertible notes convertible at a fixed amount (“fixed convertible notes”) into 13 shares of the Company’s common stock, at fixed prices ranging from $1,950,000 to $9,750,000,000 per share, as defined in the agreements. The notes bear interest at 8% to 18% per annum, and were due on various dates from March 2008 to July 2015. All of the fixed convertible notes are currently in default and the Company is pursuing settlements with certain of the holders. During the six months ended June 30, 2017, there were no additional notes issued and the Company repaid $9,000 of note principal. At December 31, 2016, the balance of the accrued interest on the fixed convertible notes was $936,639. During the six months ended June 30, 2017, the Company paid $2,500 of accrued interest and interest expense of $39,430 was accrued. At June 30, 2017, the balance of accrued interest on the fixed convertible notes was $973,569. During the six months ended June 30, 2016, interest expense of $53,452 was recorded. (c) In June 2017 the Company issued a convertible note payable for $200,000, bearing interest at 10% per annum, and maturing in June 2018. At December 31, 2016, there were no adjustable convertible notes outstanding. At the option of the holder, beginning seven months from the date issued, the note is convertible into shares of common stock of the Company at a price per share discount of 42% of the lowest closing market price of the Company’s common stock for the twenty days preceding a conversion notice. As a result, the Company determined that the conversion feature of the convertible note was not considered indexed to the Company’s own stock and characterized the fair value of the conversion feature as a derivative liability upon issuance (see Note 6). The Company determined that upon issuance of the convertible note, the initial fair value of the embedded conversion feature was $334,495, of which $200,000 was recorded as debt discount offsetting the face amount of the convertible note, and the remainder of $134,495 was recorded as private placement costs. During the three months ended June 30, 2017 the Company amortized $4,000 of the valuation discount to interest expense. At June 30, 2017 and December 31, 2016, accrued interest due for all convertible notes was $973,953 and $936,639, respectively, and is included in accrued interest in the accompanying balance sheets. Interest expense for all convertible notes payable for the six months ended June 30, 2017 and 2016 was $39,814 and $53,452, respectively.

Convertible Notes Payable Relat

Convertible Notes Payable Related Parties	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Note 3 - Convertible Notes Payable Related Parties	At June 30, 2017 and December 31, 2016, convertible notes payable - related parties consist of 12 convertible notes payable in the aggregate of $355,500. The notes are unsecured and due December 31, 2017. Six notes totaling $268,000 are due to the Company’s Chief Executive Officer, at a compounded interest rate of 8% per annum; two notes totaling $57,000 are due to the Company’s VP of Technology, interest at prime plus 2% and prime plus 4% per annum; and four notes totaling $30,000 are due to the spouse of the Company’s Chief Technology Officer at a compounded interest rate of 8% per annum. $33,000 of the notes are convertible at a fixed conversion price of $7,312,500 per share and $322,500 of the notes are convertible at a fixed conversion price of $9,750,000,000 per share, as defined in the note agreements. At December 31, 2016, accrued interest due for the convertible notes – related parties was $437,305. During the six months ended June 30, 2017, interest expense of $29,476 was accrued. At June 30, 2017, accrued interest due for the convertible notes – related parties was $466,781. During the six months ended June 30, 2016, interest expense of $27,157 was recorded.

Notes Payable

Notes Payable	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Note 4 - Notes Payable	Notes payable consisted of the following: June 30, 2017 December 31, 2016 Unsecured (a) Promissory notes $ 413,824 $ 413,824 (b) Promissory notes – StrikeForce Investor Group 1,250,000 1,290,000 Notes payable, current maturities $ 1,663,824 $ 1,703,824 (a) Notes payable consists of various unsecured promissory notes with interest from 8% to 14% per annum. $397,500 of the notes were due on various dates from December 2011 to July 2015 and are currently in default, and the balance of $16,324 is due July 2017. The Company is currently pursuing settlements with certain of the note holders. At June 30, 2017 and December 31, 2016, the balance due under these notes was $413,824. At December 31, 2016, the balance of the accrued interest on the notes payable-various was $414,342. During the six months ended June 30, 2017, $22,591 of interest expense was accrued. At June 30, 2017, accrued interest on the notes payable was $436,933. During the six months ended June 30, 2016, $25,518 of interest expense was recorded. (b) Notes payable to StrikeForce Investor Group (SIG), made up of various investors with unsecured notes, interest at 10% per annum, originally due in 2011, and currently in default. The Company is currently pursuing extensions on the delinquent notes. At December 31, 2016, the balance of notes payable-SIG was $1,290,000. During the six months ended June 30, 2017, the Company repaid $40,000 of principal and at June 30, 2017, the balance of notes payable-SIG was $1,250,000. At December 31, 2016, the balance of the accrued interest on the notes payable-SIG was $1,425,087. During the six months ended June 30, 2017, $62,413 of interest expense was accrued, $71,639 of accrued interest was paid, and $86,140 of accrued interest was forgiven and written-off. At June 30, 2017, accrued interest on the notes payable-SIG was $1,329,721. During the six months ended June 30, 2016, $72,800 of interest expense was recorded. At June 30, 2017 and December 31, 2016, accrued interest due for all notes payable above was $1,766,654 and $1,839,429, respectively, and is included in accrued interest in the accompanying balance sheets. Interest expense for notes payable for the six months ended June 30, 2017 and 2016 was $85,004 and $98,318, respectively.

Notes Payable Related Party

Notes Payable Related Party	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Note 5 - Notes Payable Related Party	Notes payable- related party consist of 18 unsecured notes payable to the Company’s Chief Executive Officer ranging in interest rates of 0% per annum to 10% per annum. The notes are unsecured and have extended due dates of December 31, 2017. At June 30, 2017 and December 31, 2016, the balance due under these notes $742,513. At December 31, 2016, accrued interest due for the notes payable – related party was $591,784. During the six months ended June 30, 2017, interest expense of $27,810 was accrued. At June 30, 2017, accrued interest due for the notes payable – related party was $619,594. During the six months ended June 30, 2016, interest expense of $27,963 was recorded.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Note 6 - Derivative Financial Instruments	At June 30, 2017, the Company had three convertible promissory notes outstanding that are convertible into shares of common stock of the Company at the option of the holder at a price per share discount of 20% to 42% of the Company’s common stock market price, as defined in the note agreements. As the ultimate determination of shares to be issued upon conversion of these notes could exceed the current number of available authorized shares, the conversion feature of these notes is recorded as a derivative liability. Accordingly, the conversion feature of the notes was separated from the host contract (i.e. the notes) and characterized as derivative liabilities to be re-measured at the end of every reporting period with the change in value reported in the statement of operations. At December 31, 2016, the balance of the derivative liabilities was $262,185. During the six months ended June 30, 2017, the Company recorded an addition of $334,495 (see Note 2), and a change in fair value of derivatives of $198,685. At June 30, 2017, the balance of the derivative liabilities was $795,365. The derivative liability was valued at the following dates using a probability weighted Black-Scholes-Merton model with the following assumptions: June 30, 2017 December 31, 2016 Conversion feature: Risk-free interest rate 0.16 % 0.16 % Expected volatility 171 % 75 % Expected life (in years) 1year 1 year Expected dividend yield - - Fair Value: Conversion feature $ 795,365 $ 262,185 The risk-free interest rate was based on rates established by the Federal Reserve Bank. The expected volatility is based on the historical volatility of the Company’s stock. The expected life of the conversion feature of the notes was based on the remaining terms of the related notes. The expected dividend yield was based on the fact that the Company has not customarily paid dividends to its common stockholders in the past and does not expect to pay dividends to its common stockholders in the future.

Stockholders Deficit

Stockholders Deficit	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Note 7 - Stockholders' Deficit	Series A Preferred Stock In 2011, the Company issued three shares of non-convertible Series A Preferred Stock valued at $329,000 per share, or $987,000 in aggregate to three members of the management team. The Series A Preferred Stock are convertible into four times the total number of common shares plus the total number of shares of Series B preferred stock issued and outstanding at the time of conversion, and have voting rights equal to eighty percent of the total issued and outstanding shares of the Company's common stock. This effectively provided the management team, upon retention of their Series A Preferred Stock, voting control on matters presented to the shareholders of the Company. The shareholders of the Series A Preferred Stock have each irrevocably waived their conversion rights relating to the Series A Preferred Stock issued. Series B Preferred Stock The Series B Preferred Stock has preferential liquidation rights in the event of any liquidation, dissolution or winding up of the Company, such liquidation rights to be paid from the assets of the Company not delegated to parties with greater priority at $1.00 per share or, in the event an aggregate subscription by a single subscriber of the Series B Preferred Stock is greater than $100,000,000, $0.997 per share. The Series B Preferred Stock shall be convertible to a number of shares of common stock equal to the price of the Series B Preferred Stock divided by the par value of the Series B Preferred Stock. The option to convert the shares of Series B Preferred Stock may not be exercised until three months following the issuance of the Series B Preferred Stock to the recipient shareholder. The Series B Preferred Stock shall have ten votes on matters presented to the shareholders of the Company for one share of Series B Preferred Stock held. The initial price of the Series B Preferred Stock shall be $2.50, (subject to adjustment by the Company’s Board of Directors) until such time, if ever, the Series B Preferred Stock are listed on a secondary and/or public exchange. In January 2017, the Company sold subscriptions to two individuals for the purchase of 53,334 shares of its Series B Preferred Stock at $1.50 per share, or an aggregate of $80,000. The shares of Series B Preferred Stock are convertible into shares of the Company’s common stock at a 25% discount to current market value, as defined, with a minimum conversion price set by the Company's Board of Directors of $0.001 per share. The Series B Preferred Stock can be converted at any time into shares of common stock after twelve months from acceptance by the Company of the subscription agreements, but only once every 30 days. For the six months ended June 30, 2017, the Company recorded a deemed dividend for the beneficial conversion feature of $17,778 relating to the issuance of the Series B Preferred Stock. Common Stock During the six months ended June 30, 2017, the Company issued an aggregate of 15,000 shares of its common stock for services valued at $246. During the six months ended June 30, 2016, the Company issued an aggregate of 2,260,252,983 shares of its common stock as follows: · Convertible note holders converted $143,123 of principal, $49,560 of accrued interest and $386,352 of additional interest, or a total of $579,035, into 2,105,237,983 shares of common stock at conversion prices ranging from $0.000058 to $0.0008 per share. · An investor processed a cashless exercise of 30 warrant shares into 125,000 shares of the Company’s common stock. The investor received an additional 154,875,000 shares of the Company’s common stock as modification consideration, valued at $185,850, and recorded as the fair value of shares issued for services in general and administrative expenses. · The Company issued 15,000 shares of common stock for services, valued at $38.

Options

Options	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Note 8 - Options	In September 2016, the Company issued options to purchase 196,000,000 shares of its common stock to its management team and employees with a total fair value of $1,568,000 determined using the Black-Scholes Option Pricing model. The options are exercisable at $0.00625 per share, vest in 6 months, and expire in September 2026. During the six months ended June 30, 2017, the Company recognized compensation costs of $749,538 based on the fair value of options that vested. The table below summarizes the Company’s 2004 Incentive Plan and 2012 Stock Incentive Plan activities for the period January 1, 2017 to June 30, 2017: Number of Options Shares Exercise Price Range Per Share Weighted Average Exercise Price Balance, January 1, 2017 196,000,001 $ 0.0023-975,000,000 $ 0.00625 Granted - $ - $ - Exercised - $ - $ - Expired - $ - $ - Balance, June 30, 2017 196,000,001 $ 0.0023-975,000,000 $ 0.00625 Vested and exercisable, June 30, 2017 196,000,001 $ 0.0023-975,000,000 $ 0.00625 Unvested, June 30, 2017 - $ - $ - As of June 30, 2017, options to purchase an aggregate of 196,000,001 shares of common stock were outstanding under the 2004 incentive plan and 2012 Stock Incentive Plan and there were 4,000,000 shares remaining available for issuance. At June 30, 2017 and December 31, 2016, the intrinsic value of outstanding options was zero. The following table summarizes information concerning 2004 Incentive plan and 2012 Stock Incentive Plan as of June 30, 2017: Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Average emaining Contractual Life (in years) Weighted Average Exercise Price $ 975,000,000 1 1.00 $ 975,000,000 1 1.00 $ 975,000,000 $ 0.00625 196,000,000 10.00 $ 0.00625 196,000,000 10.00 $ 0.00625 $ 0.00625 - 975,000,000 196,000,001 10.00 $ 0.00625 196,000,001 10.00 $ 0.00625

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Note 9 - Commitments and Contingencies	Asset Sale and Licensing Agreement On August 24, 2015, the Company entered into an agreement with Cyber Safety, Inc., a New York corporation (“Cyber Safety”) for Cyber Safety to license, and retain an option to purchase, the patents and Intellectual Property related to the GuardedID® and MobileTrust® software. Cyber Safety has the option to buy the Company’s GuardedID® patent for $9,000,000 that expires on September 30, 2020. The Company anticipates Cyber Safety will make the purchase by September 30, 2020. Cyber Safety will also resell the Company’s GuardedID® and MobileTrust® products, for which the Company will receive a royalty, while the Company retains an unlimited license to resell those products. Cyber Safety also licensed the Malware Suite until September 30, 2020 and agreed to pay the Company 15% to 20% of the net amount Cyber Safety receives from this product. During the six months ended June 30, 2017 and 2016, the Company did not receive any royalty or license payments from Cyber Safety. Legal Proceedings On June 20, 2016, the Company initiated additional patent litigation against three major competitors in the U.S. District Court for the District of New Jersey, for infringement of United States Patent No. 8,484,698. This litigation is ongoing. On March 14, 2017, one of the parties initiated an inter partes review (IPR) (a procedure for challenging the validity of a United States patent before the United States Patent and Trademark Office) against the Company’s second Patent No. 8,484,698. On March 14, 2017, the Company initiated additional patent litigation against two major competitors in the U.S. District Court for the District of Massachusetts, for infringement of United States Patent Nos. 7,870,599, 8,484,698 and 8,713,701. This litigation is ongoing. On March 14, 2017, the Company initiated additional patent litigation against two major competitors in the U.S. District Court for the Eastern District of Virginia, for infringement of United States Patent Nos. 7,870,599, 8,484,698 and 8,713,701. This litigation is ongoing. On June 13, 2017, one of the competitors initiated a lawsuit against the Company in the U.S. District Court for the District of New Jersey for patent infringement (which the Company believes is without merit and will defend vigorously). This litigation is ongoing. Due to Factor In March 2007, the Company entered into a sale and subordination agreement with a factoring firm whereby the Company sold its rights to two invoices, from February 2007 and March 2007, totaling $470,200 to the factor. Upon signing the agreement and providing the required disclosures, the factor remitted $197,450 to the Company. By December 31, 2007, the two invoices were deemed uncollectible. In February 2008, the Company agreed to pay the factor a settlement of $75,000 in September 2008, unless both parties mutually agreed to extend the due date. In September 2008, the Company and the factor reached a verbal agreement to extend the due date to December 31, 2008. As of June 30, 2017 and December 31, 2016, the balance due to the factor was $209,192 including interest. In July 2017, the Company executed an exchange agreement with the factor which transferred the amount due to the factor into a promissory note for $210,000, non-interest bearing, and maturing on February 7, 2018. Per the terms of the note, the Company shall make seven payments as follows: $60,000 in August 2017, which has been paid, $20,000 per month from September 2017 to January 2018, and $50,000 in February 2018. In the event of a default of the payment terms, the outstanding balance shall increase to 120% of the note balance. Additionally, if the note is not paid in full by the maturity date, the revised outstanding balance shall be convertible into shares of common stock of the Company at a price per share discount of 20% of the lowest trading market price of the Company’s common stock for the twenty days preceding a conversion notice.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Note 10 - Subsequent Events	In July 2017, the Company issued a convertible note payable for $175,000, bearing interest at 10% per annum, and maturing in July 2018. At the option of the holder, beginning seven months from the date issued, the note is convertible into shares of common stock of the Company at a price per share discount of 42% of the lowest closing market price of the Company’s common stock for the twenty days preceding a conversion notice. The Company determined that the conversion feature of the note was not fixed, and will record the fair value of the conversion feature of approximately $190,000 as a derivative liability.

Organization and Summary of S17

Organization and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Organization And Summary Of Significant Accounting Policies Policies
Going Concern	The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the six months ended June 30, 2017, the Company incurred a loss from operations of $1,571,657 and used cash in operating activities of $887,544, and at June 30, 2017, the Company had a stockholders’ deficit of $9,685,573. These factors raise substantial doubt about the Company’s ability to continue as a going concern within one year of the date that the financial statements are issued. In addition, the Company’s independent registered public accounting firm, in its report on the Company’s December 31, 2016 financial statements, has expressed substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. At June 30, 2017, the Company had cash on hand in the amount of $147,586. In July 2017, the Company issued a convertible promissory note to an investor and received $175,000. Management estimates that the current funds on hand will be sufficient to continue operations through the next six months. The Company’s ability to continue as a going concern is dependent upon its ability to continue to implement its business plan. Currently, management is attempting to increase revenues by redirecting its sales focus from direct sales to domestic and international sales channels, primarily selling through a channel of distributors, value added resellers, strategic partners and original equipment manufacturers. While the Company believes in the viability of its strategy to increase revenues, there can be no assurances to that effect. The Company’s ability to continue as a going concern is dependent upon its ability to continually increase its customer base and realize increased revenues from recently signed contracts. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing.
Basis of Presentation-Unaudited Interim Financial Information	The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the rules and regulations of the United States Securities and Exchange Commission to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods have been included. The results of operations for the six months ended June 30, 2017 are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2017. These financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2016 and notes thereto contained in the Annual Report on Form 10-K of the Company as filed with the United States Securities and Exchange Commission (“SEC”) on April 14, 2017.
Estimates	The preparation of financial statements in conformity with generally accepted accounting principles 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. Significant estimates include those related to accounting for potential liabilities and the assumptions made in valuing stock instruments issued for services, derivative liabilities, and valuation allowance for deferred tax assets. Actual results could differ from those estimates.
Stock Compensation	The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board (FASB) whereas the value of the award is measured on the date of grant and recognized as compensation expense on the straight-line basis over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the FASB whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Options granted to non-employees are revalued each reporting period to determine the amount to be recorded as an expense in the respective period. As the options vest, they are valued on each vesting date and an adjustment is recorded for the difference between the value already recorded and the then current value on the date of vesting. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date. The fair value of the Company’s stock option and warrant grants are estimated using the Black-Scholes-Merton option pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or warrants, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model, and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods.
Derivative Financial Instruments	The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. To determine the number of authorized but unissued shares available to satisfy outstanding convertible securities, the Company uses a sequencing method to prioritize its convertible securities as prescribed by ASC 815-40-35. At each reporting date, the Company reviews its convertible securities to determine that their classification is appropriate.
Fair Value of Financial Instruments	The Company follows the authoritative guidance issued by the Financial Accounting Standards Board (“FASB”) for fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows: Level 1—Quoted prices in active markets for identical assets or liabilities. Level 2—Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly. Level 3—Unobservable inputs based on the Company's assumptions. The Company is required to use of observable market data if such data is available without undue cost and effort. As of June 30, 2017 and December 31, 2016, the Company’s balance sheets included the fair value of derivative liabilities of $795,365 and $262,185, respectively, which were based on Level 2 measurements. The recorded amounts for accounts receivable, accounts payable, accrued expenses, convertible notes, and notes payables approximate their fair value due to their short term nature.
Income (loss) per Share	Basic income (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share reflects the potential dilution, using the treasury stock method that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income (loss) of the Company. In computing diluted income (loss) per share, the treasury stock method assumes that outstanding options, warrants, and convertible preferred stock are exercised and the proceeds are used to purchase common stock at the average market price during the period. Options, warrants, and convertible preferred stock may have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options and warrants. For the six months ended June 30, 2017, the dilutive impact of stock options exercisable into 196,000,001 shares of common stock, convertible Series B Preferred Stock that can convert into 11,575,282 shares of common stock, respectively, and notes payable that can convert into 26,666,692 shares of common stock, respectively, have been excluded because their impact on the loss per share is anti-dilutive. For the six months ended June 30, 2016, the calculations of diluted earnings per share included stock options and warrants exercisable into 340,024 shares of common stock calculated under the treasury method, and convertible Series B Preferred stock that can convert into 175,338 shares of common stock. The following tables set forth the computation of basic and diluted earnings (loss) per share: Six months ended June 30, 2017 2016 Income (Loss) per share – Basic: Income (Loss) for the period $ (2,093,644 ) $ 4,623,865 Basic average common stock outstanding 2,319,690,157 1,404,082,143 Net earnings (loss) per share $ - $ - Six months ended June 30, 2017 2016 Income (Loss) per share – Diluted: Income (Loss) for the period $ (2,093,644 ) $ 4,623,865 Basic average common stock outstanding 2,319,690,157 1,404,082,143 Diluted effect of outstanding stock options, warrants, notes and Series B Preferred stock - 533,031 Diluted average common stock outstanding 2,319,690,157 1,404,615,174 Net earnings (loss) per share $ - $ -
Significant Concentrations	For the six months ended June 30, 2017, sales to three customers comprised 52%, 13% and 11% of revenues, respectively. For the six months ended June 30, 2016, sales to two customers comprised 48% and 36% of revenues, respectively. At June 30, 2017, two customers comprised 55% and 34% of accounts receivable, respectively. At December 31, 2016, one customer comprised 82% of accounts receivable. At June 30, 2016, two customers comprised 79%, and 10% of accounts receivable, respectively
Recent Accounting Pronouncements	In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle based approach for determining revenue recognition. Under ASU 2014-09, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has recently issued ASU 2016-08, ASU 2016-10, ASU 2016-11, ASU 2016-12, ASU 2016-20, and ASU 2017-05, all of which clarify certain implementation guidance within ASU 2014-09. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. The standard can be adopted either retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the cumulative catch-up transition method). The Company is currently in the process of analyzing the information necessary to determine the impact of adopting this new guidance on its financial position, results of operations, and cash flows. The Company will adopt the provisions of this statement in the first quarter of fiscal 2018. In February 2016, the FASB issued ASU No. 2016-02, Leases. This update will require the recognition of a right-of-use asset and a corresponding lease liability, initially measured at the present value of the lease payments, for all leases with terms longer than 12 months. For operating leases, the asset and liability will be expensed over the lease term on a straight-line basis, with all cash flows included in the operating section of the statement of cash flows. For finance leases, interest on the lease liability will be recognized separately from the amortization of the right-of-use asset in the statement of comprehensive income and the repayment of the principal portion of the lease liability will be classified as a financing activity while the interest component will be included in the operating section of the statement of cash flows. ASU 2016-02 is effective for annual and interim reporting periods beginning after December 15, 2018. Early adoption is permitted. Upon adoption, leases will be recognized and measured at the beginning of the earliest period presented using a modified retrospective approach. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its financial statements and related disclosures. In July 2017, the FASB issued ASU 2017-11 , Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception Other recent accounting pronouncements issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities and Exchange Commission did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements.

Organization and Summary of S18

Organization and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Organization And Summary Of Significant Accounting Policies Tables
computation of basic and diluted earnings (loss) per share	Six months ended June 30, 2017 2016 Income (Loss) per share – Basic: Income (Loss) for the period $ (2,093,644 ) $ 4,623,865 Basic average common stock outstanding 2,319,690,157 1,404,082,143 Net earnings (loss) per share $ - $ - Six months ended June 30, 2017 2016 Income (Loss) per share – Diluted: Income (Loss) for the period $ (2,093,644 ) $ 4,623,865 Basic average common stock outstanding 2,319,690,157 1,404,082,143 Diluted effect of outstanding stock options, warrants, notes and Series B Preferred stock - 533,031 Diluted average common stock outstanding 2,319,690,157 1,404,615,174 Net earnings (loss) per share $ - $ -

Convertible Notes Payable (Tabl

Convertible Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2017
Convertible Notes Payable Tables
Schedule of detailed Information relating to convertible notes payable	June 30, 2017 December 31, 2016 Secured (a) DART $ 542,588 $ 542,588 Unsecured (b) Convertible notes with fixed conversion features 895,512 910,512 (c) Convertible notes with adjustable conversion features 200,000 - Debt discount (196,000 ) - Total convertible notes $ 1,442,100 $ 1,447,100

Notes Payable (Tables)

Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2017
Notes Payable Tables
Detailed Information Relating To Notes Payable	June 30, 2017 December 31, 2016 Unsecured (a) Promissory notes $ 413,824 $ 413,824 (b) Promissory notes – StrikeForce Investor Group 1,250,000 1,290,000 Notes payable, current maturities $ 1,663,824 $ 1,703,824

Derivative Financial Instrume21

Derivative Financial Instruments (Tables)	6 Months Ended
	Jun. 30, 2017
Derivative Financial Instruments Tables
Summary of derivative liability	June 30, 2017 December 31, 2016 Conversion feature: Risk-free interest rate 0.16 % 0.16 % Expected volatility 171 % 75 % Expected life (in years) 1year 1 year Expected dividend yield - - Fair Value: Conversion feature $ 795,365 $ 262,185

Options (Tables)

Options (Tables) - Stock Option [Member]	6 Months Ended
	Jun. 30, 2017
Summary of stock option	Number of Options Shares Exercise Price Range Per Share Weighted Average Exercise Price Balance, January 1, 2017 196,000,001 $ 0.0023-975,000,000 $ 0.00625 Granted - $ - $ - Exercised - $ - $ - Expired - $ - $ - Balance, June 30, 2017 196,000,001 $ 0.0023-975,000,000 $ 0.00625 Vested and exercisable, June 30, 2017 196,000,001 $ 0.0023-975,000,000 $ 0.00625 Unvested, June 30, 2017 - $ - $ -
Summary of stock option outstanding and exercisable	Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Average emaining Contractual Life (in years) Weighted Average Exercise Price $ 975,000,000 1 1.00 $ 975,000,000 1 1.00 $ 975,000,000 $ 0.00625 196,000,000 10.00 $ 0.00625 196,000,000 10.00 $ 0.00625 $ 0.00625 - 975,000,000 196,000,001 10.00 $ 0.00625 196,000,001 10.00 $ 0.00625

Organization and Summary of S23

Organization and Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income (Loss) per share Basic:
Basic average common stock outstanding	2,319,693,886	2,253,698,380	2,319,690,157	1,404,082,143
Net earnings/(loss) per share
Income (Loss) per share Diluted:
Income (Loss) for the period			$ (2,093,644)	$ 4,623,865
Basic average common stock outstanding			2,319,690,157	1,404,082,143
Diluted effect of outstanding stock options, warrants, notes and Series B Preferred stock				533,031
Diluted average common stock outstanding	2,319,693,886	2,253,698,380	2,319,690,157	1,404,615,174
Net earnings/(loss) per share

Organization and Summary of S24

Organization and Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Feb. 01, 2018	Sep. 01, 2017	Aug. 01, 2017	Jul. 31, 2017	Jul. 01, 2017
Net cash provided by (used in) operating activities			$ (887,544)	$ 3,096,892
Loss from operations	$ (475,240)	$ (433,590)	(1,571,657)	$ (989,724)
Stockholders deficit	(9,685,573)		(9,685,573)		$ (8,439,490)
Fair value of derivative liabilities	795,365		795,365		262,185
Cash	147,586		$ 147,586		804,130
Dilutive impact of outstanding stock options			196,000,001	340,024
Series B preferred stock convert into common stock			11,575,282	175,338
Notes payable convert into common stock			26,666,692
Research and development costs	153,751	$ 138,245	$ 278,782	$ 253,220
Issued convertible promissory note	1,442,100		1,442,100		1,447,100
Level 2 [Member]
Fair value of derivative liabilities	$ 795,365		$ 795,365		$ 262,185
One customer [Member]
Percentage of sales revenues			52.00%	48.00%
Percentage of accounts receivable			55.00%	79.00%	82.00%
Two customer [Member]
Percentage of sales revenues			13.00%	36.00%
Percentage of accounts receivable			34.00%	10.00%
Three customer [Member]
Percentage of sales revenues			11.00%
Subsequent Event [Member]
Fair value of derivative liabilities									$ 190,000
Issued convertible promissory note						$ 50,000	$ 20,000	$ 60,000		$ 210,000
Subsequent Event [Member] | Investor [Member]
Issued convertible promissory note									$ 175,000

Convertible Notes Payable (Deta

Convertible Notes Payable (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Secured
(a) DART	$ 542,588	$ 542,588
Unsecured
(b) Convertible notes with fixed conversion features	895,512	910,512
(c) Convertible notes with adjustable conversion features	200,000
Debt discount	(196,000)
Total Convertible notes	$ 1,442,100	$ 1,447,100

Convertible Notes Payable (De26

Convertible Notes Payable (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
(a) DART	$ 542,588		$ 542,588		$ 542,588
Common stock conversion prices					$ 0.005
Interest rate	10.00%		10.00%
Repayment of convertible debt			$ 9,000	$ 686,738
Acrrued interest converted	$ 973,953		973,953		$ 936,639
Accrued interest expense	224,579		39,430
Interest expense	20,082		39,814	53,452
convertible note payable	200,000		200,000
Discount on closing market price					42.00%
Beneficial conversion feature					$ 334,495
Debt maturity					Jun. 30, 2018
Convertible debt discount offsetting	(196,000)				$ 200,000
face amount					$ 134,495
Debt discount amortization	(4,000)		$ (4,000)	$ (34,293)
Minimum [Member]
Common stock conversion prices		$ 0.000058		$ 0.000058
Maximum [Member]
Common stock conversion prices		$ 0.0008		$ 0.0008
Unsecured Convertible Notes Payable [Member]
Maturity date range, start			Mar. 1, 2008
Maturity date range, end			Jul. 31, 2015
Acrrued interest converted	$ 973,569		$ 973,569
Unsecured Convertible Notes Payable [Member] | Minimum [Member]
Common stock conversion prices	$ 1,950,000		$ 1,950,000
Interest rate	8.00%		8.00%
Unsecured Convertible Notes Payable [Member] | Maximum [Member]
Common stock conversion prices	$ 9,750,000,000		$ 9,750,000,000
Interest rate	18.00%		18.00%

Convertible Notes Payable - Rel

Convertible Notes Payable - Related Parties (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Interest rate	10.00%	10.00%
Convertible notes payable current	$ 742,513	$ 742,513		$ 742,513
Common stock conversion prices				$ 0.005
Accrued interest expense		49,542
Interest expense	$ 20,082	$ 39,814	$ 53,452
Minimum [Member]
Common stock conversion prices			$ 0.000058
Maximum [Member]
Common stock conversion prices			$ 0.0008
Convertible Notes Payable Related Parties [Member]
Convertible notes payable related parties	12	12		12
Aggregate principal amount	$ 355,500	$ 355,500		$ 355,500
Interest rate	8.00%	8.00%
Convertible notes payable current	$ 33,000	$ 33,000		$ 322,500
Common stock conversion prices	$ 7,312,500	$ 7,312,500		$ 9,750,000,000
Accrued interest expense		$ 29,476
Accrued interest due to related parties	$ 466,781	466,781		$ 437,305
Interest expense		$ 27,157
Convertible Notes Payable Related Parties [Member] | Minimum [Member]
Interest rate	2.00%	2.00%
Convertible Notes Payable Related Parties [Member] | Maximum [Member]
Interest rate	4.00%	4.00%
Convertible Notes Payable Related Parties [Member] | Chief Executive Officer [Member]
Aggregate principal amount	$ 268,000	$ 268,000
Convertible Notes Payable Related Parties [Member] | VP of Technology [Member]
Aggregate principal amount	57,000	57,000
Convertible Notes Payable Related Parties [Member] | Spouse of Chief Technology Officer [Member]
Aggregate principal amount	$ 30,000	$ 30,000
Interest rate	8.00%	8.00%

Notes Payable (Details)

Notes Payable (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Unsecured
Promissory notes	$ 413,824	$ 413,824
(e) Promissory notes - StrikeForce Investor Group	1,250,000	1,290,000
Notes payable, current maturities	$ 1,663,824	$ 1,703,824

Notes Payable (Details Narrativ

Notes Payable (Details Narrative) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Promissory notes	$ 1,663,824	$ 1,663,824		$ 1,703,824
Interest rate	10.00%	10.00%
Repayment of convertible debt		$ 9,000	$ 686,738
Accrued interest	$ 27,810	27,810
Accrued interest expense		49,542
Accrued interest on notes payable		1,766,654	1,839,429
Interest expense	20,082	39,814	53,452
Interest expense for notes payable		85,004	98,318
Unsecured promissory notes [Member]
Promissory notes	397,500	$ 397,500
Maturity date range, start		Dec. 31, 2011
Maturity date range, end		Jul. 31, 2015
Balance due under these notes	413,824	$ 413,824		413,824
Remaining balance due	$ 16,324	$ 16,324
Unsecured promissory notes [Member] | Minimum [Member]
Interest rate	8.00%	8.00%
Unsecured promissory notes [Member] | Maximum [Member]
Interest rate	14.00%	14.00%
Secured promissory note [Member]
Accrued interest				414,342
Accrued interest expense		$ 22,591
Accrued interest on notes payable		$ 436,933
Interest expense			$ 25,518
StrikeForce Investor Group [Member]
Interest rate	10.00%	10.00%
Maturity date		December 31, 2011
Accrued interest paid		$ 71,639
Accrued interest	$ 86,140	86,140		1,425,087
Accrued interest expense		62,413
Accrued interest on notes payable		1,329,721
Interest expense		72,800
Balance due under these notes				$ 1,290,000
Repayment of debt		40,000
StrikeForce Investor Group [Member] | Notes Payable [Member]
Remaining balance due	$ 1,250,000	$ 1,250,000

Notes Payable - Related Party (

Notes Payable - Related Party (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Notes Payable - Related Party Details Narrative
Outstanding notes payable - related party	$ 742,513		$ 742,513
Accrued interest due for the notes - related party	619,594		$ 591,784
Interest expense for notes payable - related parties		$ 27,963
Accrued interest related party	$ 27,810

Derivative Financial Instrume31

Derivative Financial Instruments (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Conversion feature:
Risk-free interest rate	0.16%	0.16%
Expected volatility	171.00%	75.00%
Expected life (in years)	1 year	1 year
Expected dividend yield
Fair Value:
Conversion feature	$ 795,365	$ 262,185

Derivative Financial Instrume32

Derivative Financial Instruments (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Derivative Financial Instruments Details Narrative
Change in fair value of derivatives	$ 198,685
Fair value of derivative liabilities	795,365	$ 262,185
Additional derivative value	$ 334,495

Stockholders Deficit (Details N

Stockholders Deficit (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Jan. 31, 2017	Dec. 31, 2011
Common stock conversion prices			$ 0.005
Beneficial conversion feature expense			$ 334,495
Common Stock, shares issued	2,319,698,886	2,260,252,983	2,319,683,886
Common stock value	$ 231,971	$ 185,850	$ 231,970
Common stock, share	1,594,171,737
Accrued interest	$ 49,542
Additional interest	$ 386,221
Warrant excercised share		125,000
Series B Preferred Stock [Member]
Sale of Preferred Stock				53,334
Preferred stock, per share	$ 0.10		$ 0.10	$ 1.50
Preferred stock aggregate shares				80,000
Discount on common stock				25.00%
Common stock conversion prices				$ 0.001
Beneficial conversion feature expense	$ 17,778
Preferred Series B [Member]
Preferential liquidation description	The Company not delegated to parties with greater priority at $1.00 per share or, in the event an aggregate subscription by a single subscriber of the Series B Preferred Stock is greater than $100,000,000, $0.997 per share
Initial price	$ 2.50
Preferred Series A [Member]
Preferred stock issued, value					$ 987,000
Preferred Series A [Member] | Management Team One [Member]
Preferred stock issued, value					329,000
Preferred Series A [Member] | Management Team Two [Member]
Preferred stock issued, value					329,000
Preferred Series A [Member] | Management Team [Member]
Preferred stock issued, value					$ 329,000
Minimum [Member]
Common stock conversion prices		$ 0.000058
Maximum [Member]
Common stock conversion prices		$ 0.0008
Common Stock [Member]
Beneficial conversion feature expense
Common stock for services, shares	15,000	15,000
Common stock for services, value	$ 246	$ 38
Convertible note	$ 143,123
Common stock, share	154,875,000
Accrued interest	$ 49,560
Additional interest	386,352
Warrant exercised	$ 30

Options (Details)

Options (Details) - Stock Option [Member]	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Outstanding, beginning balance | shares	196,000,001
Granted | shares
Exercised | shares
Expired | shares
Outstanding, ending balance | shares	196,000,001
Vested and exercisable | shares	196,000,001
Unvested | shares
Exercise Price Range Per Share
Granted
Exercised
Expired
Outstanding, beginning balance	0.00625
Granted
Exercised
Expired
Outstanding, ending balance	0.00625
Vested and exercisable	0.00625
Unvested
Minimum [Member]
Exercise Price Range Per Share
Outstanding, beginning balance	0.0023
Outstanding, ending balance	$ 0.0023
Vested and exercisable, Shares | shares	0.0023
Unvested
Maximum [Member]
Exercise Price Range Per Share
Outstanding, beginning balance	975,000,000
Outstanding, ending balance	$ 975,000,000
Vested and exercisable, Shares | shares	975,000,000
Unvested

Options (Details 1)

Options (Details 1) - Stock Option [Member]	6 Months Ended
	Jun. 30, 2017$ / sharesshares
$975,000,000 [Member]
Number of warrants outstanding | shares	1
Weighted average remaining contractual life (years)	1 year
Weighted average exercise price | $ / shares	$ 975,000,000
Number of warrants exercisable | shares	1
Weighted average remaining contractual life (years)	1 year
Weighted average exercise price | $ / shares	$ 975,000,000
$0.00625 [Member]
Number of warrants outstanding | shares	196,000,000
Weighted average remaining contractual life (years)	10 years
Weighted average exercise price | $ / shares	$ 0.00625
Number of warrants exercisable | shares	196,000,000
Weighted average remaining contractual life (years)	10 years
Weighted average exercise price | $ / shares	$ 0.00625
0.00625 - 975,000,000 [Member]
Number of warrants outstanding | shares	196,000,001
Weighted average remaining contractual life (years)	10 years
Weighted average exercise price | $ / shares	$ 0.00625
Number of warrants exercisable | shares	196,000,001
Weighted average remaining contractual life (years)	10 years
Weighted average exercise price | $ / shares	$ 0.00625

Options (Details Narrative)

Options (Details Narrative) - USD ($)	1 Months Ended
	Sep. 30, 2016	Jun. 30, 2017	Dec. 31, 2016
Aggregate shares of common stock		2,319,698,886	2,319,683,886
Intrinsic value of option outstanding		$ 0	$ 0
Common Stock, shares authorized		5,000,000,000	5,000,000,000
Compensation costs		$ 749,538
2004 Incentive plan [Member]
Aggregate shares of common stock		196,000,001
2012 Stock Incentive Plan [Member]
Aggregate shares of common stock		4,000,000
Stock Option [Member]
Fair value of vested options	$ 1,568,000
Option to purchase common shares	196,000,000
Exercise price	$ 0.00625
Expiry year	September 2,026

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
	Jul. 31, 2017	Jun. 30, 2017	Feb. 01, 2018	Sep. 01, 2017	Aug. 01, 2017	Jul. 01, 2017	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2008	Mar. 31, 2007
Due to factor		$ 209,192					$ 209,192
Remitted by factor		197,450
Factor settlement amount									$ 75,000
Factor invoiving										$ 470,200
Convertible promissory note		$ 1,442,100					1,447,100
Cyber Safety, Inc [Member]
Expiry year		September 30, 2020
Loan from unrelated party							$ 75,000	$ 408,000
Patent cost		$ 9,000,000
Cyber Safety, Inc [Member] | Minimum [Member]
Amount receivable percentage		15.00%
Cyber Safety, Inc [Member] | Maximum [Member]
Amount receivable percentage		20.00%
Subsequent Event [Member]
Maturity date	Feb. 7, 2018
Convertible promissory note			$ 50,000	$ 20,000	$ 60,000	$ 210,000
Discount share per price	20.00%

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Jul. 31, 2017	Dec. 31, 2016	Jun. 30, 2017
Convertible note payable			$ 200,000
Interest rate			10.00%
Debt maturity		Jun. 30, 2018
Discount on closing market price		42.00%
Fair value of derivative liabilities		$ 262,185	$ 795,365
Subsequent Event [Member]
Convertible note payable	$ 175,000
Interest rate	10.00%
Debt maturity	Jul. 31, 2018
Discount on closing market price	42.00%
Fair value of derivative liabilities	$ 190,000