Rivulet Entertainment (RIVF) 10-Q 15 Nov 18 2018 Q3 Quarterly report Financial data

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