INTREorg SYSTEMS (IORG) 10-Q 13 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	Sep. 30, 2018$ / sharesshares	Sep. 30, 2018shares
Details
Registrant Name		INTREorg SYSTEMS INC.
Registrant CIK		1,295,560
SEC Form		10-Q
Period End date		Sep. 30, 2018
Fiscal Year End		--12-31
Trading Symbol		iorg
Tax Identification Number (TIN)		450,526,215
Number of common stock shares outstanding | shares	19,132,135	19,132,135
Filer Category		Non-accelerated Filer
Current with reporting		No
Small Business		true
Emerging Growth Company		true
Ex Transition Period		false
Amendment Flag		false
Document Fiscal Year Focus		2,018
Document Fiscal Period Focus		Q3
Entity Incorporation, State Country Name		Texas
Entity Address, Address Line One		2600 E. Southlake Blvd.
Entity Address, Address Line Two		Suite 120-366
Entity Address, City or Town		Southlake
Entity Address, State or Province		TX
Entity Address, Postal Zip Code		76,092
City Area Code		817
Local Phone Number		313-5005
Entity Listing, Par Value Per Share | $ / shares	$ 0

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current Assets:
Cash	$ 45,822	$ 100
Marketable securities	0	0
Total Current Assets	45,822	100
TOTAL ASSETS	45,822	100
Current Liabilities
Accounts payable	581,021	544,608
Accounts payable - related parties	553,012	535,839
Accrued interest and other liabilities	860,292	800,656
Accrued compensation	453,290	453,290
Notes payable	521,000	521,000
Revolving line of credit - related party	225,796	325,796
Total Current Liabilities	3,194,411	3,181,189
Stockholders' Deficit
Preferred Stock, Value	0	0
Common Stock, Value	3,883,211	3,400,808
Accumulated deficit	(7,031,800)	(6,581,897)
Total stockholders' deficit	(3,148,589)	(3,181,089)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 45,822	$ 100

Balance Sheets (Unaudited) - Pa

Balance Sheets (Unaudited) - Parenthetical - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Details
Preferred Stock, Par or Stated Value Per Share	$ 0	$ 0
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par or Stated Value Per Share	$ 0	$ 0
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares, Issued	19,182,135	16,624,260
Common Stock, Shares, Outstanding	19,182,135	16,624,260

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Revenues
Services revenues-related party	$ 0	$ 0	$ 0	$ 0
Total revenues	0	0	0	0
Operating expenses
Software licensing fees- related party	29,317	13,429	51,564	44,894
Salaries and wages	30,000	0	90,000	0
General and administrative expenses	151,831	38,875	259,617	88,437
Total operating expenses	211,148	52,304	401,181	133,331
Other expense
Interest Expense	10,555	10,670	31,549	31,664
Interest expense- related party	5,050	6,359	17,173	18,848
Total other expense	15,605	17,029	48,722	50,512
Net loss	$ (226,753)	$ (69,333)	$ (449,903)	$ (183,843)
Net loss per share of common stock	$ (0.01)	$ 0	$ (0.02)	$ (0.01)
Weighted average number of common shares outstanding	18,738,978	16,264,260	18,738,978	16,174,700

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows from Operating Activities
Net Loss	$ (449,903)	$ (183,843)
Adjustments to reconcile net loss to net cash used by operating activities:
Common stock and options issued for services	99,903	105,010
Stock for director and CEO fees	25,500	0
Changes in operating assets and liabilities
Increase in accounts payables	36,413	12,281
Increase in accounts payable related party	17,173	18,848
Increase in accrued liabilities and other	169,636	39,721
Net Cash Flows Used by Operating Activities	(101,278)	(7,983)
Net Cash Flows Provided (Used) by Investing Activities	0	0
Cash Flows from Financing Activities
Related party revolving line of credit	(100,000)	7,983
Proceeds from issuance of common stock	247,000	0
Net Cash Flows Provided by Financing Activities	147,000	7,983
Net increase (decrease) in cash	45,722	0
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	100	0
Cash and Cash Equivalents, at Carrying Value, Ending Balance	45,822	0
Supplemental Disclosure of Cash Flow Information
Cash paid for interest	0	0
Cash paid for taxes	0	0
Stock issued in settlement of debt and accounts payable	$ 110,000	$ 0

NOTE 1. ORGANIZATION, BASIS OF

NOTE 1. ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2018
Notes
NOTE 1. ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1. ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES. Organization INTREorg Systems, Inc. (the “Company”) was incorporated under the laws of the State of Texas on November 3, 2003. The Company was organized for the purpose of providing internet consulting and "back office" services to companies. The Company's fiscal year end is December 31st. Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. Going Concern The Company's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company's current liabilities exceed the current assets by $3,148,589 at September 30, 2018. At September 30, 2018, the Company had an accumulated deficit of $7,031,800. The Company's ability to continue as a going concern is dependent upon its ability to generate additional revenues or raise the necessary capital to further implement its business plan and ultimately achieve profitable operations. There can be no assurance that the Company will be successful in obtaining such financing, or that it will attain positive cash flow from operations. Accordingly, there is substantial doubt as to our ability to continue as a going concern. However, management believes that actions presently being taken provide the opportunity for the Company to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of these uncertainties. Basis of Presentation Interim Accounting The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's annual report on Form 10-K for the year ended December 31, 2017 as filed with the SEC on October 3, 2018. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year ended December 31, 2017 as reported in Form 10-K have been omitted. Recent Accounting Pronouncements In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718) ("ASU 2017-09"). ASU 2017-09 provides guidance on when changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity should account for the effects of a modification unless all of the following are met: · · · The amendments in ASU 2017-09 are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The amendments should be applied prospectively to an award modified on or after the adoption date. ASU 2017-09 is not expected to have a material impact on the Company's consolidated financial statements

NOTE 2. CAPITAL STOCK

NOTE 2. CAPITAL STOCK	9 Months Ended
	Sep. 30, 2018
Notes
NOTE 2. CAPITAL STOCK	NOTE 2. CAPITAL STOCK. During the nine-month period ended September 30, 2018, the Company authorized the issuance of 20,000 shares per month to Public Issuer Stock Analytics pursuant to the terms of the intellectual property license and consulting agreement the Company maintains with them. The grants are valued at the closing price of the Company’s common stock as of the grant date. During the three- and nine-month period ended September 30, 2018 the Company recorded an expense of $29,317 and $51,564, respectively for the share grants. On March 13, 2018, Mr. Robert Flynn was appointed to the Board as Director, Secretary and Treasurer. Mr. Flynn was issued 50,000 shares of common stock upon appointment to the Board. During the nine months ended September 30, 2018, Mr Flynn converted $20,000 in consulting fees into 123,540 shares of common stock. During the nine months ended September 30, 2018, Thomas Lindholm converted $90,000 of accrued CEO compensation into 476,692 shares of common stock. On June 27, 2018, the Company named Mr. Richard M. Nummi, Director and Chairman of the Executive Compensation Committee. Subject to vesting requirements, the Company granted 50,000 shares of common stock valued at $18,500 to Mr. Nummi on the date of this agreement which has been included in accrued interest and other liabilities in the June 30, 2018 balance sheet. The shares were issued on July 13, 2018. During the quarter ended June 30, 2018, the Company received, under a private placement, $60,000 for subscription to 300,000 shares of common stock at $.20 per share. The shares were issued in September 2018. During the quarter ended September 30, 2018, the Company received, under a private placement, $187,000 for subscription to 935,000 shares of common stock at $.20 per share. The shares were issued in September 2018. 2010 Stock Option and Award Incentive Plan- On June 29, 2010, the Company’s shareholders approved the adoption of the Company’s 2010 Stock Option and Award Incentive Plan (the “Plan”). The Plan, which provides for the grant of stock options to the Company’s directors, officers, employees, consultants, and advisors of the Company, is administered by a committee consisting of members of the Board of Directors (the "Stock Option Committee"), or in its absence, the Board of Directors. The Plan provides for a total of 2,000,000 shares of common stock to be reserved for issuance subject to options. During the nine months ended September 30, 2018, no stock options were granted. Stock option expense of $16,113 and $48,339was recorded during the three and nine-month period ended September 30, 2018.

NOTE 1. ORGANIZATION, BASIS O_2

NOTE 1. ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Organization (Policies)	9 Months Ended
	Sep. 30, 2018
Policies
Organization	Organization INTREorg Systems, Inc. (the “Company”) was incorporated under the laws of the State of Texas on November 3, 2003. The Company was organized for the purpose of providing internet consulting and "back office" services to companies. The Company's fiscal year end is December 31st.

NOTE 1. ORGANIZATION, BASIS O_3

NOTE 1. ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Reclassifications (Policies)	9 Months Ended
	Sep. 30, 2018
Policies
Reclassifications	Reclassifications Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation.

NOTE 1. ORGANIZATION, BASIS O_4

NOTE 1. ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Going Concern (Policies)	9 Months Ended
	Sep. 30, 2018
Policies
Going Concern	Going Concern The Company's financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company's current liabilities exceed the current assets by $3,148,589 at September 30, 2018. At September 30, 2018, the Company had an accumulated deficit of $7,031,800. The Company's ability to continue as a going concern is dependent upon its ability to generate additional revenues or raise the necessary capital to further implement its business plan and ultimately achieve profitable operations. There can be no assurance that the Company will be successful in obtaining such financing, or that it will attain positive cash flow from operations. Accordingly, there is substantial doubt as to our ability to continue as a going concern. However, management believes that actions presently being taken provide the opportunity for the Company to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of these uncertainties.

NOTE 1. ORGANIZATION, BASIS O_5

NOTE 1. ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Interim Accounting (Policies)	9 Months Ended
	Sep. 30, 2018
Policies
Interim Accounting	Interim Accounting The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC") and should be read in conjunction with the audited financial statements and notes thereto contained in the Company's annual report on Form 10-K for the year ended December 31, 2017 as filed with the SEC on October 3, 2018. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year ended December 31, 2017 as reported in Form 10-K have been omitted.

NOTE 1. ORGANIZATION, BASIS O_6

NOTE 1. ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: New Accounting Pronouncements, Policy (Policies)	9 Months Ended
	Sep. 30, 2018
Policies
New Accounting Pronouncements, Policy	Recent Accounting Pronouncements In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718) ("ASU 2017-09"). ASU 2017-09 provides guidance on when changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. An entity should account for the effects of a modification unless all of the following are met: · · · The amendments in ASU 2017-09 are effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The amendments should be applied prospectively to an award modified on or after the adoption date. ASU 2017-09 is not expected to have a material impact on the Company's consolidated financial statements

NOTE 1. ORGANIZATION, BASIS O_7

NOTE 1. ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Organization (Details)	9 Months Ended
	Sep. 30, 2018
Details
Entity Incorporation, State Country Name	Texas
Entity Incorporation, Date of Incorporation	Nov. 3, 2003

NOTE 1. ORGANIZATION, BASIS O_8

NOTE 1. ORGANIZATION, BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: Going Concern (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Details
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	$ (3,148,589)
Accumulated deficit	$ (7,031,800)	$ (6,581,897)

NOTE 2. CAPITAL STOCK_ 2010 Sto

NOTE 2. CAPITAL STOCK: 2010 Stock Option and Award Incentive Plan (Details) - Stock Option and Award Transaction 1	9 Months Ended
	Sep. 30, 2018
Sale of Stock, Transaction Date	Jun. 29, 2010
Sale of Stock, Description of Transaction	Company’s shareholders approved the adoption of the Company’s 2010 Stock Option and Award Incentive Plan