Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 14, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | IIOT-OXYS, Inc. | |
Entity Central Index Key | 1,290,658 | |
Document Type | S-1/A | |
Document Period End Date | Sep. 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 | 38,453,328 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,017 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 248,034 | $ 481,841 |
Cash - Escrow | 1,782 | 52,659 |
Prepaid Insurance | 20,613 | 0 |
Inventory | 49,604 | 10,035 |
TOTAL CURRENT ASSETS | 320,033 | 544,535 |
Other Assets | ||
Other Asset - Licensing Agreement | 1,000 | 0 |
Total Other Assets | 1,000 | 0 |
TOTAL ASSETS | 321,033 | 544,535 |
CURRENT LIABILITIES | ||
Accounts payable | 38,315 | 0 |
Credit Card Payable | 230 | 0 |
Due to stockholder | 1,000 | 1,000 |
TOTAL CURRENT LIABILITIES | 39,545 | 1,000 |
STOCKHOLDERS' EQUITY | ||
Common stock $0.001 par value, 190,000,000 shares authorized; 38,453,328 issued and outstanding at September 30, 2017; 33,197,769 shares issued and outstanding at December 31, 2016 | 38,453 | 33,198 |
Additional paid in capital | 584,431 | 518,963 |
Accumulated deficit | (341,396) | (8,626) |
TOTAL STOCKHOLDERS' EQUITY | 281,488 | 543,535 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 321,033 | $ 544,535 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ .001 | $ .001 |
Common stock, shares authorized | 190,000,000 | 190,000,000 |
Common stock, shares issued | 38,453,328 | 33,197,769 |
Common stock, shares outstanding | 38,453,328 | 33,197,769 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 2 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit | 0 | 0 | 0 | 0 |
Operating Expenses | ||||
Bank service charges | 0 | 199 | 82 | 389 |
Office expenses | 100 | 7,613 | 100 | 9,802 |
Organization costs | 0 | 8,599 | 1,000 | 12,334 |
Insurance | 0 | 2,537 | 2,537 | |
Professional fees | 0 | 154,741 | 7,162 | 295,560 |
Travel | 0 | 4,081 | 282 | 12,136 |
Total Operating Expenses | 100 | 177,770 | 8,626 | 332,758 |
Other Income (Expenses): | ||||
Interest expense | 0 | 0 | (12) | |
Total Other Income (Expense) | 0 | 0 | (12) | |
Net (loss) Before Income Taxes | (100) | (177,770) | (8,626) | (332,770) |
Income Tax Benefit (Expense) | 0 | 0 | 0 | 0 |
Net Income (Loss) | $ (100) | $ (177,770) | $ (8,626) | $ (332,770) |
Loss per common share | $ (.0000) | $ (.0063) | $ (0.0003) | $ (.0255) |
Weighted average number of shares outstanding - Basic and Diluted | 0 | 28,352,862 | 13,046,244 |
Statement of Changes in Stockho
Statement of Changes in Stockholders' Equity - USD ($) | Common Stock | Additional Paid-In Capital | Retained Earnings / Accumulated Deficit | Total |
Beginning balance, shares at Aug. 03, 2016 | 0 | |||
Beginning balance, value at Aug. 03, 2016 | $ 0 | $ 0 | $ 0 | $ 0 |
Issuance of common stock, shares | 5,724,950 | |||
Issuance of common stock, value | $ 1,724 | 550,437 | 552,161 | |
Stock split, shares | 27,472,819 | |||
Stock split, value | $ 8,233 | (8,233) | ||
Net loss | (8,626) | (8,626) | ||
Ending balance, shares at Dec. 31, 2016 | 33,197,769 | |||
Ending balance, value at Dec. 31, 2016 | $ 9,957 | $ 542,204 | $ (8,626) | 543,535 |
Net loss | (332,770) | |||
Ending balance, value at Sep. 30, 2017 | $ 281,488 |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 2 Months Ended | 5 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Dec. 31, 2016 | Sep. 30, 2017 | |
Statement of Cash Flows [Abstract] | |||
Net loss | $ (100) | $ (8,626) | $ (332,770) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
(Increase) decrease in Inventory | 0 | (10,035) | (39,569) |
(Increase) decrease in Prepaid Insurance | 0 | (20,613) | |
(Increase) decrease in Escrow | 0 | (52,659) | 50,877 |
Increase in accounts payable | 0 | 38,315 | |
Increase (Decrease) in Credit Card Payable | 0 | 230 | |
Increase (decrease) in Due to Stockholder | 1,000 | 1,000 | 0 |
Net cash used in operating activities | 900 | (70,320) | (303,530) |
Cash Flows from Investing Activities: | |||
Cash Paid in Conjunction with Licensing Agreement | 0 | (1,000) | |
Net Cash (Used) by Investing Activities | 0 | (1,000) | |
Cash Flows from Financing Activities: | |||
Issuance of Common Stock | 0 | 552,161 | 70,723 |
Net Cash Provided by Financing Activities | 0 | 552,161 | 70,723 |
Net Increase in Cash and Cash Equivalents | 900 | 481,841 | (233,807) |
Cash and Cash Equivalents - beginning of period | 0 | 0 | 481,841 |
Cash and Cash Equivalents - end of period | 900 | 481,841 | 248,034 |
Supplemental Disclosures of Cash Flow Information: | |||
Interest paid during the period | 0 | 0 | 12 |
Taxes paid during the period | $ 0 | $ 0 | $ 0 |
1. Nature of Operations
1. Nature of Operations | 5 Months Ended | 9 Months Ended |
Dec. 31, 2016 | Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Nature of Operations | Oxys Corporation (the "Company") was incorporated on August 4, 2016 in Nevada. It maintains its principal office in Massachusetts at 705 Cambridge St., Cambridge, MA 02142. The Company is currently considered a development stage company as referred in ASU 2014-10 Development Stage Entities (Topic 915). The Company is currently devoting substantially all its efforts in identifying, developing and marketing engineered products, software and services for applications in the Industrial Internet which involves collecting and processing data collected from a wide variety of industrial systems and machines. Subsequent Events The Company has evaluated events and transactions occurring subsequent to December 31, 2016, for items that should potentially be recognized or disclosed in these financial statements. The evaluation was conducted through April 27, 2017, the date these financial statements were issued. | On July 28, 2017, the Company executed and closed the Securities Exchange Agreement dated effective March 16, 2017, between the Company, OXYS, and the shareholders of OXYS and changed its name to IIOT-OXYS, Inc. As a result of the Closing, the Company issued 34,687,244 shares on a pro rata basis to the shareholders of OXYS, and OXYS became a wholly owned subsidiary of the Company. In addition, the Company cancelled 1,500,000 outstanding shares held by principal shareholders of the Company, which resulted in a total of 38,453,328 shares issued and outstanding upon completion of the Closing. OXYS Corporation was incorporated on August 4, 2016 in Nevada. It maintains its principal office in Massachusetts at 705 Cambridge St., Cambridge, MA 02142. The Company was only recently formed and is currently devoting substantially all its efforts in identifying, developing and marketing engineered products, software and services for applications in the Industrial Internet which involves collecting and processing data collected from a wide variety of industrial systems and machines. |
2. Summary of Significant Accou
2. Summary of Significant Accounting Policies | 5 Months Ended | 9 Months Ended |
Dec. 31, 2016 | Sep. 30, 2017 | |
Accounting Policies [Abstract] | ||
Summary of Significant Accounting Policies | Basis of Presentation The Company's financial statements are prepared on the accrual method of accounting. The accounting and reporting policies of the Company conform with generally accepted accounting principles (GAAP). Use of Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported revenues and expenses during the reporting period. Actual results could vary from the estimates that were used. Fair Value of Financial Instruments The fair value of certain of our financial instruments including cash and cash equivalents, cash escrow due to stockholder approximate their carrying amounts because of the short-term maturity of these instruments. Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, Income Taxes, which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes. Deferred taxes are recognized for operating losses that are available to offset future taxable income. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized. The Company adopted the provisions of FASB ASC 740-10-25, which prescribes a recognition threshold and measurement attribute for the recognition and measurement of tax positions taken or expected to be taken in income tax returns. FASB ASC 740-10-25 also provides guidance on de•recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions. The Company's tax returns are subject to tax examinations by U.S. federal and state authorities until respective statute of limitation. Currently, the 2016 tax year is open and subject to examination by taxing authorities. However, the Company is not currently under audit nor has the Company been contacted by any of the taxing authorities. The Company does not have any accruals for uncertain tax positions as of December 31, 2016. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all unrestricted highly liquid investments with an original maturity of three months or less to be cash equivalents. Concentration of Risk Financial instruments that potentially expose us to concentrations of risk consist primarily of cash and cash equivalents and cash-escrow, which are generally not collateralized. Our policy is to place our cash and cash equivalents with high quality financial institutions, in order to limit the amount of credit exposure. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (FDIC), up to $250,000. At December 31, 2016, the Company had $231,841 in excess of the FDIC insurance limit. Inventory Inventory consists primarily of demo equipment and is recorded at the lower of cost (first-in, first out method) or market all work in progress. | Basis of Presentation The Company's financial statements are prepared on the accrual method of accounting. The accounting and reporting policies of the Company conform with generally accepted accounting principles (GAAP). Use of Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported revenues and expenses during the reporting period. Actual results could vary from the estimates that were used. Fair Value of Financial Instruments The fair value of certain of our financial instruments including cash and cash equivalents, cash escrow and due to stockholder approximate their carrying amounts because of the short-term maturity of these instruments. Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, Income Taxes, which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes. Deferred taxes are recognized for operating losses that are available to offset future taxable income. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized. The Company adopted the provisions of FASB ASC 740-10-25, which prescribes a recognition threshold and measurement attribute for the recognition and measurement of tax positions taken or expected to be taken in income tax returns. FASB ASC 740-10-25 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions. The Company's tax returns are subject to tax examinations by U.S. federal and state authorities until respective statute of limitation. Currently, the 2016 tax year is open and subject to examination by taxing authorities. However, the Company is not currently under audit nor has the Company been contacted by any of the taxing authorities. The Company does not have any accruals for uncertain tax positions as of September 30, 2017. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date. Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all unrestricted highly liquid investments with an original maturity of three months or less to be cash equivalents. Concentration of Risk Financial instruments that potentially expose the Company to concentrations of risk consist primarily of cash and cash equivalents and cash-escrow, which are generally not collateralized. The Company’s policy is to place its cash and cash equivalents with high quality financial institutions, in order to limit the amount of credit exposure. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (FDIC), up to $250,000. At September 30, 2017, the Company had $9,098 in excess of the FDIC insurance limit. Inventory Inventory consists primarily of demo equipment and is recorded at the lower of cost (first-in, first out method) or market all work in progress. Earnings (Loss) Per Share The Company computes net earnings (loss) per share under Accounting Standards Codification subtopic 260-10, "Earnings Per Share" ("ASC 260-1 O"). Basic earnings or loss per share ("EPS") is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has incurred continuing operating losses and has an accumulated deficit of $341,396 at September 30, 2017. The Company has no operations currently generating revenue and has limited cash resources. These factors raise substantial doubt about the ability of the Company to continue as a going concern. Management believes that it will be able to achieve a satisfactory level of liquidity to meet the Company’s obligations through December 31, 2018 by generating revenues. However, there can be no assurance that the Company will be able to generate sufficient liquidity to maintain its operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. |
3. Recent Accounting Pronouncem
3. Recent Accounting Pronouncements | 5 Months Ended | 9 Months Ended |
Dec. 31, 2016 | Sep. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | ||
Recent Accounting Pronouncements | Earnings (Loss) Per Share The Company computes net earnings (loss) per share under Accounting Standards Codification subtopic 260-10, "Earnings Per Share" ("ASC 260-1 O"). Basic earnings or loss per share ("EPS") is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. In May 2016, accounting guidance was issued to clarify the not yet effective revenue recognition guidance issued in May 2014. This additional guidance does not change the core principle of the revenue recognition guidance issued in May 2014, rather, it provides clarification of accounting for collections of sales taxes as well as recognition of revenue (i) associated with contract modifications, (ii) for noncash consideration, and (iii) based on the collectability of the consideration from the customer. The guidance also specifies when a contract should be considered "completed" for purposes of applying the transition guidance. The effective date and transition requirements for this guidance are the same as the effective date and transition requirements for the guidance previously issued in 2014, which is effective for interim and annual periods beginning on or after December 15, 2017. The Company has not yet determined the impact that this new guidance will have on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change existing guidance related to accounting for employee share-based payments affecting the income tax consequences of awards, classification of awards as equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual periods, with early adoption permitted. The Company is currently evaluating the potential impact of the adoption of this standard. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the consolidated balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated income statement. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the potential impact of the adoption of this standard. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this update revise the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The amendments are effective for annual reporting periods after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the potential impact of the adoption of this standard. In April 2015, the FASB issued ASU 2015-03, Interest- Imputation of Interest (Subtopic 835-30). This guidance is to simplify the presentation of debt issuance costs by recognizing a debt liability in the balance sheet as a direct deduction from that debt liability consistent with the presentation of a debt discount. The amendments in this update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The Company has adopted this standard and the adoption did not have a material impact on the Company's financial position. In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which is intended to define management's responsibility to evaluate whether there is substantial doubt about an organization's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued when applicable) and to provide related footnote disclosures. The ASU provides guidance to an organization's management, with principles and definitions that are intended to reduce diversity in the timing and content of disclosures that are commonly provided by organizations today in the financial statement footnotes. The ASU is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016, which for the Company is April 1, 2017. Early adoption is permitted. The adoption of this standard will not have a material impact on the Company's financial position or results of operations. The amendments also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations. The central feature of the guidance on disclosure requirements is that required disclosures are limited to matters significant to a particular entity. The disclosures focus primarily on risks and uncertainties that could significantly affect the amounts reported in the financial statements in the near term or the near-term functioning of the reporting entity. Other Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. | In May 2016, accounting guidance was issued to clarify the not yet effective revenue recognition guidance issued in May 2014. This additional guidance does not change the core principle of the revenue recognition guidance issued in May 2014, rather, it provides clarification of accounting for collections of sales taxes as well as recognition of revenue (i) associated with contract modifications, (ii) for noncash consideration, and (iii) based on the collectability of the consideration from the customer. The guidance also specifies when a contract should be considered "completed" for purposes of applying the transition guidance. The effective date and transition requirements for this guidance are the same as the effective date and transition requirements for the guidance previously issued in 2014, which is effective for interim and annual periods beginning on or after December 15, 2017. The Company has not yet determined the impact that this new guidance will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The new standard establishes a right-of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the consolidated balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the consolidated income statement. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, including interim periods within those annual periods, with early adoption permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the potential impact of the adoption of this standard. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this update revise the accounting related to the classification and measurement of investments in equity securities and the presentation of certain fair value changes for financial liabilities measured at fair value. The amendments are effective for annual reporting periods after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the potential impact of the adoption of this standard. Other Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures. |
4. Income Taxes (December 2016
4. Income Taxes (December 2016 Note) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The Company is subject to federal and state income taxes. The Company's provision for income taxes for the period from inception (August 4, 2016) to December 31, 2016 consists of the following: Income Tax Expense (Benefit) For the period Current federal tax expense Federal $ 0 State 0 Deferred tax (benefit) Federal $ 0 State 0 Total $ 0 The provision for income taxes for the period from inception (August 4, 2016) to December 31, 2016 differs from that computed by applying federal statutory rates to income before federal income tax expense, as indicated in the following analysis: For the period Expected federal tax (benefit) at 34% rate $ (2,933 ) Valuation allowance 2,933 Total income tax (benefit) $ 0 Effective tax rate (benefit) 0.00 % A summary of deferred tax assets and liabilities for the period from inception (August 4, 2016) to December 31, 2016 is as follows: For the period Deferred tax assets: Federal tax loss carryforward $ 2,933 Total deferred tax assets 2,933 Valuation allowance (2,933 ) Net Deferred Tax Assets $ 0 Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred since inception. Such objective evidence limits the ability to consider other subjective evidence such as our projections for future growth. On the basis of this evaluation, as of December 31, 2016, a valuation allowance of ($2,933) has been recorded to record only the portion of the deferred tax asset that is more likely than not to be realized. The amount of the deferred tax asset considered realizable, however, could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present and additional weight may be given to subjective evidence such as our projections for growth. As of December 31, 2016, the Company had approximately $8,626 federal and state net operating loss carryforwards, which result in a deferred tax asset of $2,933, expiring in 2036. The Company has recorded a valuation allowance of $2,933. |
4. Stockholders' Equity
4. Stockholders' Equity | 5 Months Ended | 9 Months Ended |
Dec. 31, 2016 | Sep. 30, 2017 | |
Equity [Abstract] | ||
Stockholders' Equity | Common Stock The Company's original Certificate of Incorporation authorized the Company to issue 10,000 shares of common stock, par value $0.001 per share. On October 7, 2016, a board resolution was passed that authorized the number of shares to be increased to 50,000,000 shares. On October 8, 2016, a board resolution was passed that authorized a forward split 3,000 to 1. | Common Stock The Company has authorized 190,000,000 shares of $.001 par value common stock and 10,000,000 shares of $.001 par value preferred stock. At September 30, 2017 the Company has 38,453,328 share of common stock and no shares of preferred stock issued and outstanding. Holders of shares of common stock are entitled to one vote for each share on all matters to be voted on by the stockholders. Holders of common stock do not have cumulative voting rights. Holders of common stock are entitled to share ratable in dividends, if any, as may be declared from time to time by the Board of Directors in its discretion from funds legally available therefore. In the event of liquidation, dissolution, or winding up of the Company, the holders of common stock are entitled to share pro rata in all assets remaining after payment in full of all liabilities. All of the outstanding shares of common stock are fully paid and non-assessable. Holders of common stock have no preemptive rights to purchase the Company’s common stock. There are no conversion or redemption rights or sinking fund provisions with respect to the common stock. On March 16, 2017, the Board of Directors and Majority Shareholders approved the IIOT-OXYS, Inc. 2017 Stock Awards Plan, (the “Plan”). The Plan provides for granted incentive stock options, options that do not constitute incentive stock options, stock appreciation rights, restricted stock awards, phantom stock awards, or any combination of the foregoing, as is best suited to the particular circumstances. The Plan shall be effective upon its adoption by the Board. The aggregate number of common shares that may be issued under the Plan shall be 7,000,000 common shares. No further awards may be granted under the Plan after ten years following the effective date. The Plan shall remain in effect until all awards granted under the Plan have been satisfied or expired. On July 28, 2017, the Company executed and closed the Securities Exchange Agreement dated effective March 16, 2017, between the Company, OXYS, and the shareholders of OXYS and changed its name to IIOT-OXYS, Inc. As a result of the closing, the Company issued 34,687,244 shares on a pro rata basis to the shareholders of OXYS, and OXYS became a wholly owned subsidiary of the Company. In addition, the Company cancelled 1,500,000 outstanding shares held by principal shareholders of the Company, which resulted in a total of 38,453,328 shares issued and outstanding upon completion of the Closing. |
5. Earnings Per Share
5. Earnings Per Share | 5 Months Ended | 9 Months Ended |
Dec. 31, 2016 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||
Earnings Per Share | The following table sets forth the composition of the weighted average shares (denominator) used in the basic per share computation for the period from inception (August 4, 2016) to December 31, 2016. For the period Net Loss $ (8,626 ) Weighted average share outstanding basic 31,768,822 Basic loss per share $ 0.0003 | The following table sets forth the composition of the weighted average shares (denominator) used in the basic per share computation for the nine months ended September 30, 2017 and for the period from inception (August 4, 2016) to September 30, 2016. For the For the For the period Net Loss $ (177,770 ) $ (332,770 ) $ (100 ) Weighted average share outstanding basic 28,352,862 13,046,244 0 Basic loss per share $ 0.0063 $ 0.0255 $ 0.0000 |
6. Subsequent Events
6. Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined there are the following items to disclose: On October 26, 2017, pursuant to the Agreement and Plan of Merger dated July 10, 2017, the change of domicile from the State of New Jersey to the State of Nevada became effective in accordance with Articles of Merger filed with the State of Nevada and the Certificate of Merger filed with the State of New Jersey. |
2. Summary of Significant Acc14
2. Summary of Significant Accounting Policies (Policies) | 5 Months Ended | 9 Months Ended |
Dec. 31, 2016 | Sep. 30, 2017 | |
Accounting Policies [Abstract] | ||
Basis of Presentation | Basis of Presentation The Company's financial statements are prepared on the accrual method of accounting. The accounting and reporting policies of the Company conform with generally accepted accounting principles (GAAP). | Basis of Presentation The Company's financial statements are prepared on the accrual method of accounting. The accounting and reporting policies of the Company conform with generally accepted accounting principles (GAAP). |
Use of Estimates | Use of Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported revenues and expenses during the reporting period. Actual results could vary from the estimates that were used. | Use of Estimates Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported revenues and expenses during the reporting period. Actual results could vary from the estimates that were used. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of certain of our financial instruments including cash and cash equivalents, cash escrow due to stockholder approximate their carrying amounts because of the short-term maturity of these instruments. | Fair Value of Financial Instruments The fair value of certain of our financial instruments including cash and cash equivalents, cash escrow and due to stockholder approximate their carrying amounts because of the short-term maturity of these instruments. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, Income Taxes, which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes. Deferred taxes are recognized for operating losses that are available to offset future taxable income. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized. The Company adopted the provisions of FASB ASC 740-10-25, which prescribes a recognition threshold and measurement attribute for the recognition and measurement of tax positions taken or expected to be taken in income tax returns. FASB ASC 740-10-25 also provides guidance on de•recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions. The Company's tax returns are subject to tax examinations by U.S. federal and state authorities until respective statute of limitation. Currently, the 2016 tax year is open and subject to examination by taxing authorities. However, the Company is not currently under audit nor has the Company been contacted by any of the taxing authorities. The Company does not have any accruals for uncertain tax positions as of December 31, 2016. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date. | Income Taxes The Company accounts for income taxes in accordance with FASB ASC 740, Income Taxes, which requires the recognition of deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes. Deferred taxes are recognized for operating losses that are available to offset future taxable income. Valuation allowances are established to reduce deferred tax assets to the amount expected to be realized. The Company adopted the provisions of FASB ASC 740-10-25, which prescribes a recognition threshold and measurement attribute for the recognition and measurement of tax positions taken or expected to be taken in income tax returns. FASB ASC 740-10-25 also provides guidance on de-recognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, and accounting for interest and penalties associated with tax positions. The Company's tax returns are subject to tax examinations by U.S. federal and state authorities until respective statute of limitation. Currently, the 2016 tax year is open and subject to examination by taxing authorities. However, the Company is not currently under audit nor has the Company been contacted by any of the taxing authorities. The Company does not have any accruals for uncertain tax positions as of September 30, 2017. It is not anticipated that unrecognized tax benefits would significantly increase or decrease within 12 months of the reporting date. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all unrestricted highly liquid investments with an original maturity of three months or less to be cash equivalents | Cash and Cash Equivalents For purposes of the statement of cash flows, the Company considers all unrestricted highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Concentration of Risk | Concentration of Risk Financial instruments that potentially expose us to concentrations of risk consist primarily of cash and cash equivalents and cash-escrow, which are generally not collateralized. Our policy is to place our cash and cash equivalents with high quality financial institutions, in order to limit the amount of credit exposure. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (FDIC), up to $250,000. At December 31, 2016, the Company had $231,841 in excess of the FDIC insurance limit. | Concentration of Risk Financial instruments that potentially expose the Company to concentrations of risk consist primarily of cash and cash equivalents and cash-escrow, which are generally not collateralized. The Company’s policy is to place its cash and cash equivalents with high quality financial institutions, in order to limit the amount of credit exposure. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (FDIC), up to $250,000. At September 30, 2017, the Company had $9,098 in excess of the FDIC insurance limit. |
Inventory | Inventory Inventory consists primarily of demo equipment and is recorded at the lower of cost (first-in, first out method) or market all work in progress. | Inventory Inventory consists primarily of demo equipment and is recorded at the lower of cost (first-in, first out method) or market all work in progress. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share The Company computes net earnings (loss) per share under Accounting Standards Codification subtopic 260-10, "Earnings Per Share" ("ASC 260-1 O"). Basic earnings or loss per share ("EPS") is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. | |
Going Concern | Going Concern The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has incurred continuing operating losses and has an accumulated deficit of $341,396 at September 30, 2017. The Company has no operations currently generating revenue and has limited cash resources. These factors raise substantial doubt about the ability of the Company to continue as a going concern. Management believes that it will be able to achieve a satisfactory level of liquidity to meet the Company’s obligations through December 31, 2018 by generating revenues. However, there can be no assurance that the Company will be able to generate sufficient liquidity to maintain its operations. The financial statements do not include any adjustments that might result from the outcome of these uncertainties. |
4. Income Taxes (Tables)
4. Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax expense (benefit) | Income Tax Expense (Benefit) For the period Current federal tax expense Federal $ 0 State 0 Deferred tax (benefit) Federal $ 0 State 0 Total $ 0 |
Schedule of effective tax rate (benefit) | For the period Expected federal tax (benefit) at 34% rate $ (2,933 ) Valuation allowance 2,933 Total income tax (benefit) $ 0 Effective tax rate (benefit) 0.00 % |
Schedule of deferred tax assets and liabilities | For the period Deferred tax assets: Federal tax loss carryforward $ 2,933 Total deferred tax assets 2,933 Valuation allowance (2,933 ) Net Deferred Tax Assets $ 0 |
5. Earnings Per Share (Tables)
5. Earnings Per Share (Tables) | 5 Months Ended | 9 Months Ended |
Dec. 31, 2016 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||
Earnings per share | For the period Net Loss $ (8,626 ) Weighted average share outstanding basic 31,768,822 Basic loss per share $ 0.0003 | For the For the For the period Net Loss $ (177,770 ) $ (332,770 ) $ (100 ) Weighted average share outstanding basic 28,352,862 13,046,244 0 Basic loss per share $ 0.0063 $ 0.0255 $ 0.0000 |
2. Summary of Significant Acc17
2. Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||
Cash in excess of FDIC insurance | $ 9,098 | |
Accumulated deficit | $ (341,396) | $ (8,626) |
4. Stockholders' Equity (Detail
4. Stockholders' Equity (Details Narrative) | Sep. 30, 2017shares |
2017 Stock Awards Plan [Member] | |
Shares authorized for issuance | 700,000 |
5. Earnings Per Share (Details)
5. Earnings Per Share (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (100) | $ (177,770) | $ (8,626) | $ (332,770) |
Weighted average shares outstanding - basic | 0 | 28,352,862 | 31,768,822 | 13,046,244 |
Basic loss per share | $ .0000 | $ (.0063) | $ (.0003) | $ (.0255) |
4. Income Taxes (Details - Inco
4. Income Taxes (Details - Income tax expense) - USD ($) | 2 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Current federal tax expense | ||||
Federal | $ 0 | |||
State | 0 | |||
Deferred tax (benefit) | ||||
Federal | 0 | |||
State | 0 | |||
Total | $ 0 | $ 0 | $ 0 | $ 0 |
4. Income Taxes (Details - Effe
4. Income Taxes (Details - Effective income tax reconcilation) - USD ($) | 2 Months Ended | 3 Months Ended | 5 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Expected federal tax (benefit) at 34% rate | $ (2,933) | |||
Valuation allowance | 2,933 | |||
Total income tax (benefit) | $ 0 | $ 0 | $ 0 | $ 0 |
Effective tax rate (benefit) | 0.00% |
4. Income Taxes (Details - Defe
4. Income Taxes (Details - Deferred tax assets) | Dec. 31, 2016USD ($) |
Deferred tax assets: | |
Federal tax loss carryforward | $ 2,933 |
Total deferred tax assets | 2,933 |
Valuation allowance | (2,933) |
Net Deferred Tax Assets | $ 0 |