Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Sep. 30, 2018 | Oct. 31, 2018 | Jun. 30, 2017 | |
Details | |||
Registrant Name | Advanced Voice Recognition Systems, Inc | ||
Registrant CIK | 1,342,936 | ||
SEC Form | 10-Q | ||
Period End date | Sep. 30, 2018 | ||
Fiscal Year End | --12-31 | ||
Trading Symbol | avrs | ||
Tax Identification Number (TIN) | 980,511,932 | ||
Number of common stock shares outstanding | 255,520,268 | ||
Public Float | $ 0 | ||
Filer Category | Non-accelerated Filer | ||
Current with reporting | Yes | ||
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 File Number | 000-52390 | ||
Entity Incorporation, State Country Name | Nevada | ||
Entity Address, Address Line One | 7659 E. Wood Drive | ||
Entity Address, City or Town | Scottsdale | ||
Entity Address, State or Province | Arizona | ||
Entity Address, Postal Zip Code | 85,260 | ||
Entity Address, Address Description | Address of principal executive offices | ||
City Area Code | 480 | ||
Local Phone Number | 704-4183 | ||
Phone Fax Number Description | Registrant's telephone number, including area code |
Condensed Balance Sheets (Septe
Condensed Balance Sheets (September 30, 2018 Unaudited) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 5,498 | $ 7,257 |
Total Current Assets | 5,498 | 7,257 |
Non Current Assets | ||
Patent, net | 47,064 | 53,204 |
Deferred costs | 0 | 3,595 |
Total Non Current Assets | 47,064 | 56,799 |
Total Assets | 52,562 | 64,056 |
Current Liabilities | ||
Accounts payable | 75,552 | 126,502 |
Payroll | 162,382 | 162,382 |
Note Payable Meyer & Assoc. | 41,252 | 0 |
Note Payable AIP | 19,935 | 19,935 |
Note Payable Related Party | 9,000 | 0 |
Accrued Interest | 7,484 | 5,981 |
Total Current Liabilities | 315,605 | 314,800 |
Stockholders' Deficit | ||
Common Stock, Value | 255,520 | 243,920 |
Additional paid-in capital | 7,817,848 | 7,788,248 |
Accumulated Deficit | (8,336,411) | (8,282,912) |
Total Stockholders' Deficit | (263,043) | (250,744) |
Total Liabilities and Stockholders' Deficit | $ 52,562 | $ 64,056 |
Condensed Balance Sheets (Sep_2
Condensed Balance Sheets (September 30, 2018 Unaudited) - Parenthetical - $ / shares | Sep. 30, 2018 | Dec. 31, 2017 |
Details | ||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 547,500,000 | 547,500,000 |
Common Stock, Shares, Issued | 255,520,268 | 243,920,268 |
Common Stock, Shares, Outstanding | 255,520,268 | 243,920,268 |
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 | ||
Details | |||||
Sales | $ 0 | $ 0 | $ 0 | $ 0 | |
Cost of goods sold | 0 | 0 | 0 | 0 | |
Gross profit | 0 | 0 | |||
Operating expenses: | |||||
Compensation | 25 | 4,863 | 1,419 | 13,623 | |
Professional fees | 3,025 | 6,690 | 22,973 | 36,021 | |
Office | 7,841 | 6,356 | 19,377 | 16,871 | |
Travel | 158 | 42 | 551 | 298 | |
Other | 432 | 357 | 2,216 | 1,886 | |
Total operating expenses | 11,481 | 18,308 | 46,536 | 68,699 | |
Loss from operations | (11,481) | (18,308) | (46,536) | (68,699) | |
Other income and (expense): | |||||
Interest expense | (2,392) | (2,900) | (6,963) | (7,565) | |
Net other expense | (2,392) | (2,900) | (6,963) | (7,565) | |
Loss before income taxes | (13,873) | (21,208) | (53,499) | (76,264) | |
Provision for income taxes | 0 | 0 | 0 | 0 | |
Loss before extraordinary items | (13,873) | (21,208) | (53,499) | (76,264) | |
Net Loss | $ (13,873) | $ (21,208) | $ (53,499) | $ (76,264) | |
Basic and diluted loss per common share | [1] | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average number of common shares | 255,395,824 | 240,295,268 | 252,078,046 | 235,822,675 | |
[1] | less than $0.01 per share |
Statements of Cash Flows (Unaud
Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (53,499) | $ (76,264) |
Adjustments to reconcile net loss to net Cash (used in) operating activities: | ||
Amortization and depreciation | 10,716 | 10,092 |
Changes in operating liabilities: | ||
Accounts payable and accrued liabilities | 2,938 | 16,160 |
Net cash used in operating activities | (39,845) | (50,012) |
Cash Flows from Investing Activities: | ||
Payments for patents | (980) | 0 |
Payments for deferred costs | 0 | (1,450) |
Net cash used in investing activities | (980) | (1,450) |
Cash Flows from Financing Activities: | ||
Proceeds from sale of common stock | 41,200 | 49,500 |
Proceeds from notes payable | 9,000 | 0 |
Payments on notes payable | (11,134) | 0 |
Net cash provided by financing activities | 39,066 | 49,500 |
Net change in cash | (1,759) | (1,962) |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 7,257 | 9,454 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 5,498 | 7,492 |
Supplemental Disclosure of Cash Flow Information: | ||
Account payable converted to note payable | 52,385 | 0 |
Interest | 5,460 | 7,565 |
Income taxes | $ 0 | $ 0 |
Note 1. Nature of Operations
Note 1. Nature of Operations | 9 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 1. Nature of Operations | On November 6, 2017 Advanced Voice Recognition Systems, Inc (“AVRS”) received notice that Meyers & Associates, LLC filed Complaint number 2017CV32482 in Arapahoe County District Court on October 30, 2017. The Complaint relates to purported legal fees owed by AVRS. On January 31, 2018 AVRS entered into a Settlement Agreement and Promissory Note with Meyers & Associates, LLC. AVRS promises to pay the principal sum of Fifty-Two Thousand Three Hundred Eighty-Five Dollars and Forty-Six Cents ($52,385.46) as well as accrued interest. AVRS shall pay $1,000 per month on the first day of each month beginning February 1, 2018 and continuing through July 1, 2018 and pay all remaining unpaid principal and accrued interest (12% annual) on August 1, 2018. The February, March, April, May and June payments have been made. On August 1, 2018 AVRS and Meyers & Associates entered into an Agreement to Amend Promissory Note. AVRS shall pay $6,000 on or before August 1, 2018, shall pay $1,500 on the first day of each month beginning September 1, 2018 and continuing through November 1, 2018 and shall pay all remaining unpaid principal and accrued interest on December 1, 2018. The August, September, October and November payments have been paid. On June 21, 2018, Advanced Voice Recognition Systems, Inc. (“ AVRS ”) and Buether Joe & Carpenter, LLC (“BJC) entered into a Letter of Engagement for Legal Services Limited Scope Agreement (“ Agreement ”) with Schmeiser, Olsen & Watts LLP (“ the Firm ”) pursuant to which the Firm will serve as local counsel in the United States District Court, District of Arizona. The Firm has been hired to represent AVRS as local counsel in connection with forthcoming litigation in the U.S. District Court, District of Arizona. AVRS may terminate the Agreement at any time. On September 24, 2018, Advanced Voice Recognition Systems, Inc., a Nevada corporation (“AVRS”, “we” or “us”), entered into Promissory Note with Walter Geldenhuys, who is our President, Chief Executive Officer and Chief Financial Officer, and who serves as a member of our Board of Directors. The Promissory Note is effective as of September 24, 2018 in the principal amount of $9,000 with a maturity date of the Promissory Note September 24, 2019. Interest at 4% per annum was charged and accrued at September 30, 2018. |
Note 2. Significant Accounting
Note 2. Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 2. Significant Accounting Policies | Note 2. Significant Accounting Policies Unaudited Financial Information The accompanying financial information at September 30, 2018 and for the nine months ended September 30, 2018 and 2017 is unaudited. In the opinion of management, all normal and recurring adjustments which are necessary to provide a fair presentation of the Company’s financial position at September 30, 2018 and its operating results for the nine months ended September 30, 2018 and 2017 have been made. Certain information and footnote data necessary for a fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted. It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2017. The results of operations for the nine months ended September 30, 2018 are not necessarily an indication of operating results to be expected for the year ending December 31, 2018. Going Concern The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities exceed assets and there is a capital deficiency of $263,043 and no significant revenues. The Company may be unable to continue as a going concern for a reasonable period of time. The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability. During the twelve months ended December 31, 2017 the Company received an aggregate of $60,000 from the sale of shares in private offerings of its common stock. During the nine months ended September 30, 2018 the Company received an aggregate of $41,200 from the sale of shares in private offerings of its common stock. The Company’s current operations are related to patent monetization and filing of additional patents. The Company has entered into a letter agreement with Dominion Harbor Group, LLC to provide strategic advisory services to AVRS. Dominion has agreed to advanced costs up to an aggregate of $10,000,000. On June 28, 2017 the Company and Dominion agreed to terminate the August 20, 2015 Letter Agreement. The Company did not incur any material early termination penalties. In addition the Company has revised the Contingent Fee Agreement with Buether Joe & Carpenter, LLC which will represent AVRS in connection with investigating and asserting claims to the AVRS patents including licensing and litigation activities. Any and all advanced costs will only become liabilities if successful. On June 6, 2017 AVRS and BJC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement. There is no guarantee that AVRS will be able to provide the capital required for the Company to continue as a going concern. Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Basis of Consolidation The consolidated financial statements include our accounts and those of NCC, LLC which merged with and into AVRS, Inc. March 25, 2009. Intercompany transactions and balances have been eliminated. The accounts, results of operations and cash flows of acquired companies are included from their respective acquisition dates. Cash and Cash Equivalents The Company considers all highly liquid debt instruments with original maturities of three months or less when acquired to be cash equivalents. The Company had cash at September 30, 2018 of $5,498, $7,257 at December 31, 2017 and $7,492 cash at September 30, 2017. No amounts resulted from cash equivalents. Financial Instruments The carrying amounts of cash, receivables and current liabilities approximate fair value due to the short-term maturity of the instruments. Fixed Assets Fixed assets are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, ranging from three to five years. Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred. The cost and related accumulated depreciation of property and equipment sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal. Income Taxes Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the recorded book basis and the tax basis of assets and liabilities for financial and income tax reporting. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future federal income taxes. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company’s financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. The Company did not record a cumulative effect adjustment related to the adoption of ASC 740. Research and Development Costs Research and development costs are expensed in the period incurred. Patents, Deferred Costs and Amortization Patents consist of costs incurred to acquire issued patents. Amortization commences once a patent is granted. Costs incurred to acquire patents that have not been issued are reported as deferred costs. On April 3, 2018 U.S. Patent #9,934,786 entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” was issued by the U.S patent and Trademark Office. Deferred costs of $4,575 were capitalized and amortization began in the period. The Company amortizes its patents over an estimated useful life of twenty years. Impairment and Disposal of Long-Lived Assets The Company evaluates the carrying value of its long-lived assets under the provisions of Statement of Financial Accounting Standard (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” now referred to as ASC 360-10 Property, Plant, and Equipment Loss per Common Share The Company reports net loss per share using a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. At September 30, 2018 and 2017, there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding. Fair Value of Financial Instruments The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments. The FASB Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Note 3. Intangible and Fixed As
Note 3. Intangible and Fixed Assets | 9 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 3. Intangible and Fixed Assets | Note 3. Intangible and Fixed Assets Intangible Assets The Company monitors the anticipated outcome of legal actions, and if it determines that the success of the defense of a patent is probable, and so long as the Company believes that the future economic benefit of the patent will be increased, the Company capitalizes external legal costs incurred in the defense of the patent. Upon successful defense of litigation, the amounts previously capitalized are amortized over the remaining life of the patent. On July 7, 2009, U.S. Patent # 7,558,730, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 7, 2009 and ending 20 years from the application date of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended September 30, 2009 and the Company began amortization. On May 24, 2011, U.S. Patent #7,949,534, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning May 24, 2011 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended June 30, 2011 and the Company began amortization. On March 6, 2012, U.S. Patent #8,131,557, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning March 6, 2012 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended March 31, 2012 and the Company began amortization. On July 30, 2013, U.S. Patent #8,498,871, entitled “Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 30, 2013 and ending 20 years from the application date of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended September 30, 2013 and the Company began amortization. On June 27, 2013, the Company filed two additional continuation applications 13/928/381 and 13/928,383 with the U.S. Patent and Trademark Office entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols.” On August 31, 2015, Application 13/928,381 was abandoned by the Company. Deferred costs were charged to operations the quarter ended September 30, 2015. On September 22, 2015, U.S. Patent #9,142,217, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning September 22, 2015 and ending 20 years from the application date of the parent application (US Patent No. 7,558,730) of November 27, 2001, or November 27, 2021. The deferred fees were capitalized during the quarter ended September 30, 2015 and the Company began amortization. On April 3, 2018, U.S. Patent #9,934,786, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning April 3, 2018 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001 or November 27, 2021. The deferred costs were capitalized during the quarter ended June 30, 2018 and the Company began amortization. Amortization at December 31, 2017 is as follows: SCHEDULE OF INTANGIBLE ASSETS Ended December 31, 2017 U.S. Patent # Carrying Value Amortization Balance 7,558,730 $ 58,277 $ 39,882 $ 18,395 7,949,534 3,365 2,113 1,252 8,131,557 5,092 3,046 2,046 8,498,871 21,114 11,183 9,931 9,142,217 35,068 13,488 21,580 $ 122,916 $ 69,712 $ 53,204 Amortization at September 30, 2018 is as follows: Ended September 30, 2018 U.S. Patent # Carrying Value Amortization Balance 7,558,730 $ 58,277 43,401 14,876 7,949,534 3,365 2,347 1,018 8,131,557 5,092 3,439 1,653 8,498,871 21,114 13,082 8,032 9,142,217 35,068 17,534 17,534 9,934,786 4,575 624 3,951 $ 127,491 $ 80,427 $ 47,064 Amortization expense totaled $10,716 and $10,092 for the nine months ended September 30, 2018 and 2017. Estimated aggregate amortization expense for each of the next four years is as follows: SCHEDULE OF FUTURE AMORTIZATION Year ending September 30, 2018 3,674 2019 14,702 2020 14,702 2021 13,986 $ 47,064 Fixed Assets Fixed assets were fully depreciated in the period ending December 31, 2017. PROPERTY PLANT AND EQUIPMENT December 31, 2017 Computer equipment $ 6,627 Computer software 3,640 10,267 Less accumulated depreciation (10,267) Property and Equipment, Net $ 0 September 30, 2018 September 30, 2017 Computer equipment $ 6,627 $ 6,627 Computer software 3,640 3,640 10,267 10,267 Less accumulated depreciation (10,267) (10,267) Property and Equipment, Net $ 0 $ 0 |
Note 4. Related Party Transacti
Note 4. Related Party Transactions | 9 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 4. Related Party Transactions | Note 4. Related Party Transactions Related Parties Transactions and Indebtedness During the years from 2000 through 2013, certain officers advanced the Company working capital to maintain the Company’s operations. The Company owed the officers $9,000 and -0- at September 30, 2018 and 2017 respectively. The Company also owed the officers aggregate of $162,382 at September 30, 2018 and December 31, 2017 for accrued payroll. During the period of nine months ending September 30, 2018, and September 30, 2017 the Company paid gross payroll of $1,419 and $13,623 to the CEO and for payroll expenses. On September 24, 2018, Walter Geldenhuys, who is our President, Chief Executive Officer and Chief Financial Officer, and who serves as a member of our Board of Directors loaned the Company $9,000. During the nine month period ending September 30, 2018, AVRS completed Stock Purchase Agreements totaling 11,600,000 shares of AVRS stock to four shareholders. All shares were paid in the period ending September 30, 2018, for a total amount of $41,200. At period ending September 30, 2018 one shareholder owned 5.30% of the issued and outstanding stock. |
Note 5. Income Taxes
Note 5. Income Taxes | 9 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 5. Income Taxes | Note 5. Income Taxes A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows. INCOME TAXES September 30, 2018 December 31, 2017 U.S. federal statutory graduated rate 21.00% 21.00% State income tax rate, net of federal benefit 0.00% 0.00% Contributed services 00.00% -00.68% Costs capitalized under Section 195 -21.00% -20.32% Effective rate 0.00% 0.00% The Company is considered a start-up company for income tax purposes. As of September 30, 2018, the Company had not commenced its trade operations, so all costs were capitalized under Section 195. Accordingly, the Company had no net operating loss carry forwards at September 30, 2018. |
Note 6 . Concentration of Risk
Note 6 . Concentration of Risk | 9 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 6 . Concentration of Risk | Note 6 . Concentration of Risk Beginning March 31, 2010, through September 30, 2018, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of $250,000, at all FDIC-insured institutions. On September 30, 2018, the Company had cash balances at one FDIC insured financial institution of $5,498 in non-interest bearing accounts that were fully insured by the FDIC. |
Note 7. Stockholder Equity _ (D
Note 7. Stockholder Equity / (Deficit) | 9 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 7. Stockholder Equity / (Deficit) | Note 7. Stockholder Equity / (Deficit) The Company has issued shares of its common stock pursuant to certain agreements as described in Note 1. |
Note 8 . Subsequent Events
Note 8 . Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Notes | |
Note 8 . Subsequent Events | Note 8 . Subsequent Events On August 1, 2018 AVRS and Meyers & Associates, LLC entered into an Agreement to Amend Promissory Note. AVRS shall pay $6,000 on or before August 1, 2018, shall pay $1,500 on the first day of each month beginning September 1, 2018 and continuing through November 1, 2018 and shall pay all remaining unpaid principal and accrued interest on December 1, 2018 . The August, September, October and November payments have been paid. On October 24, 2018 Walter Geldenhuys advanced the Company $4,000. |
Note 2. Significant Accountin_2
Note 2. Significant Accounting Policies: Unaudited Financial Information (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Unaudited Financial Information | Unaudited Financial Information The accompanying financial information at September 30, 2018 and for the nine months ended September 30, 2018 and 2017 is unaudited. In the opinion of management, all normal and recurring adjustments which are necessary to provide a fair presentation of the Company’s financial position at September 30, 2018 and its operating results for the nine months ended September 30, 2018 and 2017 have been made. Certain information and footnote data necessary for a fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted. It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2017. The results of operations for the nine months ended September 30, 2018 are not necessarily an indication of operating results to be expected for the year ending December 31, 2018. |
Note 2. Significant Accountin_3
Note 2. Significant Accounting Policies: Going Concern (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Going Concern | Going Concern The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities exceed assets and there is a capital deficiency of $263,043 and no significant revenues. The Company may be unable to continue as a going concern for a reasonable period of time. The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability. During the twelve months ended December 31, 2017 the Company received an aggregate of $60,000 from the sale of shares in private offerings of its common stock. During the nine months ended September 30, 2018 the Company received an aggregate of $41,200 from the sale of shares in private offerings of its common stock. The Company’s current operations are related to patent monetization and filing of additional patents. The Company has entered into a letter agreement with Dominion Harbor Group, LLC to provide strategic advisory services to AVRS. Dominion has agreed to advanced costs up to an aggregate of $10,000,000. On June 28, 2017 the Company and Dominion agreed to terminate the August 20, 2015 Letter Agreement. The Company did not incur any material early termination penalties. In addition the Company has revised the Contingent Fee Agreement with Buether Joe & Carpenter, LLC which will represent AVRS in connection with investigating and asserting claims to the AVRS patents including licensing and litigation activities. Any and all advanced costs will only become liabilities if successful. On June 6, 2017 AVRS and BJC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement. There is no guarantee that AVRS will be able to provide the capital required for the Company to continue as a going concern. |
Note 2. Significant Accountin_4
Note 2. Significant Accounting Policies: Use of Estimates (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Note 2. Significant Accountin_5
Note 2. Significant Accounting Policies: Basis of Consolidation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Basis of Consolidation | Basis of Consolidation The consolidated financial statements include our accounts and those of NCC, LLC which merged with and into AVRS, Inc. March 25, 2009. Intercompany transactions and balances have been eliminated. The accounts, results of operations and cash flows of acquired companies are included from their respective acquisition dates. |
Note 2. Significant Accountin_6
Note 2. Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid debt instruments with original maturities of three months or less when acquired to be cash equivalents. The Company had cash at September 30, 2018 of $5,498, $7,257 at December 31, 2017 and $7,492 cash at September 30, 2017. No amounts resulted from cash equivalents. |
Note 2. Significant Accountin_7
Note 2. Significant Accounting Policies: Financial Instruments (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Financial Instruments | Financial Instruments The carrying amounts of cash, receivables and current liabilities approximate fair value due to the short-term maturity of the instruments. |
Note 2. Significant Accountin_8
Note 2. Significant Accounting Policies: Fixed Assets (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fixed Assets | Fixed Assets Fixed assets are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, ranging from three to five years. Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred. The cost and related accumulated depreciation of property and equipment sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal. |
Note 2. Significant Accountin_9
Note 2. Significant Accounting Policies: Income Taxes (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Income Taxes | Income Taxes Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the recorded book basis and the tax basis of assets and liabilities for financial and income tax reporting. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future federal income taxes. The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company’s financial condition, results of operations, or cash flow. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. The Company did not record a cumulative effect adjustment related to the adoption of ASC 740. |
Note 2. Significant Accounti_10
Note 2. Significant Accounting Policies: Research and Development Costs (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Research and Development Costs | Research and Development Costs Research and development costs are expensed in the period incurred. |
Note 2. Significant Accounti_11
Note 2. Significant Accounting Policies: Patents, Deferred Costs and Amortization (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Patents, Deferred Costs and Amortization | Patents, Deferred Costs and Amortization Patents consist of costs incurred to acquire issued patents. Amortization commences once a patent is granted. Costs incurred to acquire patents that have not been issued are reported as deferred costs. On April 3, 2018 U.S. Patent #9,934,786 entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” was issued by the U.S patent and Trademark Office. Deferred costs of $4,575 were capitalized and amortization began in the period. The Company amortizes its patents over an estimated useful life of twenty years. |
Note 2. Significant Accounti_12
Note 2. Significant Accounting Policies: Impairment and Disposal of Long-Lived Assets (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Impairment and Disposal of Long-Lived Assets | Impairment and Disposal of Long-Lived Assets The Company evaluates the carrying value of its long-lived assets under the provisions of Statement of Financial Accounting Standard (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” now referred to as ASC 360-10 Property, Plant, and Equipment |
Note 2. Significant Accounti_13
Note 2. Significant Accounting Policies: Loss per Common Share (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Loss per Common Share | Loss per Common Share The Company reports net loss per share using a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. At September 30, 2018 and 2017, there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding. |
Note 2. Significant Accounti_14
Note 2. Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Policies | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments. The FASB Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability. Level 3: Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Note 3. Intangible and Fixed _2
Note 3. Intangible and Fixed Assets: Schedule of Amortization of Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Amortization of Intangible Assets | Amortization at December 31, 2017 is as follows: SCHEDULE OF INTANGIBLE ASSETS Ended December 31, 2017 U.S. Patent # Carrying Value Amortization Balance 7,558,730 $ 58,277 $ 39,882 $ 18,395 7,949,534 3,365 2,113 1,252 8,131,557 5,092 3,046 2,046 8,498,871 21,114 11,183 9,931 9,142,217 35,068 13,488 21,580 $ 122,916 $ 69,712 $ 53,204 Amortization at September 30, 2018 is as follows: Ended September 30, 2018 U.S. Patent # Carrying Value Amortization Balance 7,558,730 $ 58,277 43,401 14,876 7,949,534 3,365 2,347 1,018 8,131,557 5,092 3,439 1,653 8,498,871 21,114 13,082 8,032 9,142,217 35,068 17,534 17,534 9,934,786 4,575 624 3,951 $ 127,491 $ 80,427 $ 47,064 |
Note 3. Intangible and Fixed _3
Note 3. Intangible and Fixed Assets: Schedule of future amortization (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of future amortization | SCHEDULE OF FUTURE AMORTIZATION Year ending September 30, 2018 3,674 2019 14,702 2020 14,702 2021 13,986 $ 47,064 |
Note 3. Intangible and Fixed _4
Note 3. Intangible and Fixed Assets: Schedule of Property, Plant and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Tables/Schedules | |
Schedule of Property, Plant and Equipment | PROPERTY PLANT AND EQUIPMENT December 31, 2017 Computer equipment $ 6,627 Computer software 3,640 10,267 Less accumulated depreciation (10,267) Property and Equipment, Net $ 0 September 30, 2018 September 30, 2017 Computer equipment $ 6,627 $ 6,627 Computer software 3,640 3,640 10,267 10,267 Less accumulated depreciation (10,267) (10,267) Property and Equipment, Net $ 0 $ 0 |
Note 5. Income Taxes_ Schedule
Note 5. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | INCOME TAXES September 30, 2018 December 31, 2017 U.S. federal statutory graduated rate 21.00% 21.00% State income tax rate, net of federal benefit 0.00% 0.00% Contributed services 00.00% -00.68% Costs capitalized under Section 195 -21.00% -20.32% Effective rate 0.00% 0.00% |
Note 2. Significant Accounti_15
Note 2. Significant Accounting Policies: Going Concern (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Details | |||
Total Stockholders' Deficit | $ (263,043) | $ (250,744) | |
Proceeds from sale of common stock | $ 41,200 | $ 49,500 | $ 60,000 |
Note 2. Significant Accounti_16
Note 2. Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Details | ||||
Cash and cash equivalents | $ 5,498 | $ 7,257 | $ 7,492 | $ 9,454 |
Note 2. Significant Accounti_17
Note 2. Significant Accounting Policies: Impairment and Disposal of Long-Lived Assets (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Details | ||
Impairment of Long-Lived Assets to be Disposed of | $ 0 | $ 0 |
Note 3. Intangible and Fixed _5
Note 3. Intangible and Fixed Assets: Schedule of Amortization of Intangible Assets (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
U.S. Patent # 7,558,730 | ||
Carrying Value | $ 58,277 | $ 58,277 |
Amortization | 43,401 | 39,882 |
Balance | 14,876 | 18,395 |
U.S. Patent # 7,949,534 | ||
Carrying Value | 3,365 | 3,365 |
Amortization | 2,347 | 2,113 |
Balance | 1,018 | 1,252 |
U.S. Patent # 8,131,557 | ||
Carrying Value | 5,092 | 5,092 |
Amortization | 3,439 | 3,046 |
Balance | 1,653 | 2,046 |
U.S. Patent # 8,498,871 | ||
Carrying Value | 21,114 | 21,114 |
Amortization | 13,082 | 11,183 |
Balance | 8,032 | 9,931 |
U.S. Patent # 9,142,217 | ||
Carrying Value | 35,068 | 35,068 |
Amortization | 17,534 | 13,488 |
Balance | 17,534 | 21,580 |
U.S. Patents | ||
Carrying Value | 127,491 | 122,916 |
Amortization | 80,427 | 69,712 |
Balance | 47,064 | $ 53,204 |
U.S. Patent # 9,934,786 | ||
Carrying Value | 4,575 | |
Amortization | 624 | |
Balance | $ 3,951 |
Note 3. Intangible and Fixed _6
Note 3. Intangible and Fixed Assets: Schedule of future amortization (Details) | Sep. 30, 2018USD ($) |
Details | |
2,018 | $ 3,674 |
2,019 | 14,702 |
2,020 | 14,702 |
2,021 | 13,986 |
Balance | $ 47,064 |
Note 3. Intangible and Fixed _7
Note 3. Intangible and Fixed Assets: Schedule of Property, Plant and Equipment (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Details | |||
Computer equipment | $ 6,627 | $ 6,627 | $ 6,627 |
Computer software | 3,640 | 3,640 | 3,640 |
Less accumulated depreciation | (10,267) | (10,267) | (10,267) |
Property and Equipment, Net | $ 0 | $ 0 | $ 0 |
Note 4. Related Party Transac_2
Note 4. Related Party Transactions (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Details | |||||
Note Payable Related Party | $ 9,000 | $ 0 | $ 9,000 | $ 0 | $ 0 |
Payroll | 162,382 | 162,382 | 162,382 | ||
Compensation | $ 25 | $ 4,863 | 1,419 | 13,623 | |
Proceeds from sale of common stock | $ 41,200 | $ 49,500 | $ 60,000 |
Note 5. Income Taxes_ Schedul_2
Note 5. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) | Sep. 30, 2018 | Dec. 31, 2017 |
Details | ||
U.S. federal statutory graduated rate | 21.00% | 21.00% |
State income tax rate, net of federal benefit | 0.00% | 0.00% |
Contributed services | 0.00% | (0.68%) |
Costs capitalized under Section 195 | (21.00%) | (20.32%) |
Effective rate | 0.00% | 0.00% |
Note 5. Income Taxes (Details)
Note 5. Income Taxes (Details) | Sep. 30, 2018USD ($) |
Details | |
Operating Loss Carryforwards | $ 0 |
Note 6 . Concentration of Risk
Note 6 . Concentration of Risk (Details) - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Details | ||||
Cash and cash equivalents | $ 5,498 | $ 7,257 | $ 7,492 | $ 9,454 |
Note 8 . Subsequent Events (Det
Note 8 . Subsequent Events (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Event 1 | |
Subsequent Event, Date | Aug. 1, 2018 |
Subsequent Event, Description | AVRS and Meyers & Associates, LLC entered into an Agreement to Amend Promissory Note |
Event 2 | |
Subsequent Event, Date | Oct. 24, 2018 |
Subsequent Event, Description | Walter Geldenhuys advanced the Company $4,000 |