Rivulet Entertainment (RIVF) 10-Q 15 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	3 Months Ended
	Mar. 31, 2014	Jun. 30, 2013
Document and Entity Information:	'	'
Entity Registrant Name	'Advanced Voice Recognition Systems, Inc.	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0001342936	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	213,657,056	'
Entity Public Float	'	$1,910,907
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

Balance_Sheets

Balance Sheets (USD $)	Mar. 31, 2014		Dec. 31, 2013
Current Assets	'		'
Cash	$14,647		$13,995
Total Current Assets	14,647		13,995
Computer software and equipment, net	2,794		3,087
Total Fixed Assets	2,794		3,087
Patent, net	63,956		67,025
Deferred costs	25,955		21,302
Total Intangible Assets	89,911		88,327
Total Assets	107,352		107,352
Current Liabilities	'		'
Accounts payable	25,430		16,736
Accrued liabilities	162,497		162,383
Total Current Liabilities	187,927		179,119
Stockholders' Deficit	'		'
Common stock	213,657	[1]	211,093	[2]
Additional Paid-in Capital	7,626,936		7,601,300
Deficit Accumulated during Development Stage	-7,921,168		-7,886,103
Total Stockholders' Deficit	-80,575		-73,710
Total Liabilities and Stockholders' Deficit	$107,352		$105,409
[1]	$.001 547,500,000 shares authorized 213,657,056 shares issued in 2014
[2]	$.001 547,500,000 shares authorized 211,093,420 shares issued in 2013

Statements_of_Operations

Statements of Operations (USD $)	3 Months Ended		241 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Income Statement	'	'	'
Sales	'	'	$1,241,924
Cost of goods sold	'	'	379,378
Gross profit	'	'	862,546
Operating Expenses	'	'	'
Research and development	'	'	1,189,531
Contributed services	'	'	2,317,982
Compensation	13,971	69,600	1,335,318
Stock Based Compensation	'	'	150,500
Professional fees	14,279	16,419	1,621,360
Office	2,442	4,026	332,920
Rent	'	'	157,356
Travel	464	'	159,806
Advertising	'	'	81,090
Bad debt expense	'	'	67,217
Other Expenses	3,752	3,027	438,213
Impairment of Deferred Costs	'	'	1,068,860
Total operating expenses	34,908	93,072	8,920,153
Loss from operations	-34,908	-93,072	-8,057,607
Other income and (expense):	'	'	'
Investment Income	'	'	5,062
Interest expense	-157	'	-68,360
Loss on sale of assets	'	'	-13,503
Net other expense	-157	'	-76,801
Loss before income taxes	-35,065	-93,072	-8,134,408
Gain on early extinguishment of debt	'	'	213,240
Net Loss	($35,065)	($93,072)	($7,921,168)
Basic and diluted loss per common share	$0.01	$0.01	'
Weighted average number of common shares outstanding	212,627,589	204,282,865	'

Statement_of_Stockholders_Defi

Statement of Stockholders' Deficit (USD $)	Common Stock	Additional Paid-in Capital	Deficit Accumulated During Development Stage	Total
Stockholders Deficit, Starting Balance at Dec. 31, 2013	$211,093	$7,601,300	($7,886,103)	($73,710)
Shares, Issued, Starting Balance at Dec. 31, 2013	211,093,420	'	'	'
Stock Issued During Period, Value	2,564	25,636	'	28,200
Stock Issued During Period, Shares	2,563,636	'	'	'
Net Loss	'	'	-35,065	-35,065
Stockholders Deficit, Ending Balance at Mar. 31, 2014	$213,657	$7,626,936	($7,921,168)	($80,575)
Shares, Issued, Ending Balance at Mar. 31, 2014	213,657,056	'	'	'

Statement_of_Cash_Flows

Statement of Cash Flows (USD $)	3 Months Ended		241 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014
Cash Flows from Operating Activities:	'	'	'
Net Loss	($35,065)	($93,072)	($7,921,168)
Gain on early extinguishment of debt	'	'	-213,240
Amortization and depreciation	3,362	2,767	95,018
Contributed services	'	'	2,317,982
Expenses paid in exchange for shareholder debt	'	'	34,047
Disposal of Fixed Asset Loss	'	'	495
Stock-based compensation expense	'	'	150,500
Accounts payable and accrued liabilities	8,808	41,083	395,367
Net cash used in operating activities	-22,895	-49,222	-5,140,999
Cash Flows from Investing Activities:	'	'	'
Purchases of computer equipment and software	'	'	-11,168
Payments for patents	'	'	-151,095
Payments for deferred costs	-4,653	-8,046	-25,955
Net cash used in investing activities	-4,653	-8,046	-188,218
Cash Flows from Financing Activities:	'	'	'
Proceeds from sale of common stock	28,200	'	5,372,111
Payments on advances from shareholder	'	'	-34,047
Payments on promissory note from shareholder	'	'	-305,544
Proceeds from promissory notes and advances	'	'	311,344
Net cash provided by financing activities	28,200	'	5,343,864
Net change in cash	652	-57,268	14,467
Cash at start of period	13,995	76,520	'
Cash at end of period	14,647	19,252	14,647
Supplemental Disclosure of Cash Flow Information:	'	'	'
Interest	$157	'	$26,961

Note_1_Nature_of_Operations

Note 1. Nature of Operations	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 1. Nature of Operations	'
	Company Overview
	The operations of Advanced Voice Recognition Systems, Inc. (“AVRS” or the “Company”), http://www.avrsys.com, commenced in 1994 with a predecessor entity called NCC, Inc. NCC, Inc. was incorporated on March 15, 1994 in the State of Ohio. NCC, Inc. operated as a software and hardware development company that marketed voice recognition and transcription products for commercial applications.
	In May 2000, WG Investments, LLC acquired the assets of NCC, Inc. and subsequently changed its name to NCC, LLC. NCC, LLC (also a predecessor to AVRS) continued the operations of NCC, Inc. until approximately December 31, 2001, when shifts in the industry’s markets caused NCC, LLC to suspend its operations.
	AVRS was incorporated in the State of Colorado on July 7, 2005. In September 2005, the members of NCC, LLC transferred all of their membership interests in NCC, LLC to AVRS in exchange for 93,333,333 shares (post-recapitalization) of AVRS common stock. In December 2005, the Board of Directors approved a 1.5-to-1 stock split issuing 46,666,667 common shares (post-recapitalization), which increased the number of common shares outstanding to 140million shares (post-capitalization). Following the incorporation of AVRS, the Company initiated a new business plan and intends to continue its operations in the voice recognition and transcription industry.
	AVRS is a software development company specializing in speech recognition technologies. AVRS has successfully obtained patent protection of its proprietary technology (refer to Note 3, Intangible Assets). The Company plans to focus its technologies for the medical profession because of the profession’s present extensive use of dictation and its need for multiple applications of speech recognition technology in the generation of reports, documents and medical bills. Additionally the Company plans to focus on server based dictation and transcription, visual voicemail and the voicemail to text market.
	The Company is a development stage enterprise in accordance with Financial Accounting Standards Board’s Accounting Standards Codification 915 “Development Stage Entities”. The Company has been in the development stage since Inception (March 15, 1994).
	Stock Exchange Agreement
	On April 28, 2008, the Company entered into a Stock Exchange Agreement (“the Agreement”) with Samoyed Energy Corp., a Nevada corporation (“Samoyed”), which resulted in a reverse acquisition.  The Agreement provided for the reorganization of AVRS with Samoyed. In connection with the Agreement, Samoyed acquired all of the issued and outstanding common shares of AVRS in exchange for 140 million shares of Samoyed’s common stock.  On May 19, 2008 at the closing of the Agreement, the former shareholders of AVRS owned approximately 85% of the outstanding common stock of Samoyed, resulting in a change in control.
	For accounting purposes, this acquisition has been treated as a reverse acquisition and recapitalization of AVRS, with Samoyed the legal surviving entity. Since Samoyed had, prior to the recapitalization, minimal assets and limited operations, the recapitalization has been accounted for as the sale of 24,700,008 shares of AVRS common stock for the net liabilities of Samoyed. Therefore, the historical financial information prior to the date of the recapitalization is the financial information of AVRS. Costs of the transaction have been charged to the period in which they are incurred.
	In connection with the Agreement, a shareholder of Samoyed holding an aggregate of 3.5 million shares of Samoyed’s common stock made payments totaling $565,651 since 2008 in lieu of tendering shares to the Company.  The Company received the final payment of $6,000 on February 15, 2012.
	Agreement and Plan of Merger
	On March 25, 2009, the Company entered into an Agreement and Plan of Merger (“Agreement and Plan of Merger”) with its wholly-owned subsidiary, NCC, LLC, a Colorado limited liability company, whereby NCC, LLC merged with and into the Company pursuant to Section 92A.180 of the Nevada Business Corporations Act. Upon consummation of the Agreement and Plan of Merger: (i) NCC, LLC ceased to exist; (ii) the Company’s membership interests in NCC, LLC automatically were canceled or retired and ceased to exist, without any consideration delivered in exchange thereof; (iii) the title to all estate, property rights privileges, powers and franchise assets and/or other rights owned by NCC, LLC became vested in the Company without reversion or impairment; and (iv) all liabilities of any kind of NCC, LLC became vested in the Company.
	Stock Purchase Agreements
	During the year ended December 31, 2013, the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 6,810,555 shares of the common stock for aggregate proceeds of $123,010, all of which was received in 2013. During the three months ended March 31, 2014, the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 2,563,636 shares of the common stock for aggregate proceeds of $28,200, full payment of which was received in the period.
	Stock Based Compensation
	During the period since Inception (March 15, 1994) the Company issued 700,000 restricted shares of the Company’s common stock for services rendered by outside consultants.

Note_2_Significant_Accounting_

Note 2. Significant Accounting Policies	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 2. Significant Accounting Policies	'
	Unaudited Financial Information
	The accompanying financial information at March 31, 2014 and for the three months ended March 31, 2014 and 2013, and the period from March 15, 1994 (Inception) through March 31, 2014, 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 March 31, 2014 and its operating results for the three months ended March 31, 2014 and 2013 and the period from March 15, 1994 (Inception) through March 31, 2014, 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, 2013.  The results of operations for the three months ended March 31, 2014 are not necessarily an indication of operating results to be expected for the year ending December 31, 2014.
	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. As shown in the accompanying financial statements, the Company is a development stage enterprise with losses since Inception and a net capital deficit. These factors, among others, may indicate that 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 years ended December 31, 2012 and 2011, the Company’s President loaned or advanced the Company funds for working capital on an “as needed” basis. There is no assurance that these loans or advances will continue in the future.   During the twelve months ended December 31, 2013 the Company received an aggregate of $123,010 from the sale of shares in private offerings of its common stock.  During the three months ended March 31, 2014 the Company received an aggregate of $28,200 from the sale of shares in private offerings of its common stock.
	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 March 31, 2014 of $14,647, and $13,995 cash at December 31, 2013.  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.
	Revenue Recognition
	Revenue from the sale of inventory is recognized on the date of sale, title and risk of loss have transferred to the purchaser, the fees are fixed or determinable and collection is reasonably assured. Revenue from the performance of services is recognized when services have been completed and collection is probable. There are no multiple element sales and no history of material returns. The revenue recognition policies relate to operations performed prior to the Company’s reverse acquisition.
	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.
	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. If a patent application is denied or expires, the costs incurred are charged to operations in the year the application is denied or expires. 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 – “Impairment or Disposal of Long Lived Assets” subsections” . ASC 306-10 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted future cash flows estimated to be generated by those assets are less than the assets’ carrying amount. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying value or fair value, less costs to sell.  The Company’s last impairment analysis was completed effective December 31, 2013.  Impairment recorded for each of the three months ended March 31, 2014 and 2013 was $-0-.  See Note 3.
	Gain from Early Extinguishment of Debt
	At December 31, 2013 the Company extinguished twelve year old debt.  In addition the law firm which represented the Company in the interference matter closed their files on July 15, 2013 which extinguished that debt.  In accordance with ASC 470-50-40-2 the Company recorded the gain of $213,240 on the early extinguishment of debt in other income on the face of the financial documents.
	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 March 31, 2014 and 2013, 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.
	Subsequent Events
	None

Note_3_Intangible_and_Fixed_As

Note 3. Intangible and Fixed Assets	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 3. Intangible and Fixed Assets	'
	Intangible Assets
	On November 13, 1995 the Company filed a patent application with the U.S. Patent and Trademark Office, which was granted on September 28, 1999 as patent #5,960,447, “Word Tagging and Editing System for Speech Recognition”. In accordance with 35 USC 154, the term for the above referenced patent shall be for a period beginning on the date on which the patent issues and ending 20 years from the date on which the application for the patent was filed in the United States. The above referenced U.S. Patent will expire on November 13, 2015.
	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, Patent No.: US 7,558,730 titled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 USC 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.  The patent will expire on November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2009 and the Company began amortization.
	On March 9, 2010 the U.S. Patent and Trademark Office declared interference between the Company as Senior Party and Allvoice Developments, US LLC as Junior Party.  Due to the absence of a decision by the end of 2010, in the 4th quarter of 2010, AVRS impaired 100% of the deferred costs associated with the interference, resulting in a $1,068,860 impairment loss.  On April 27, 2012, the BPAI entered a judgment denying the Company’s motions.  On May 29, 2012, AVRS filed a Request for Rehearing in the BPAI.  On December 19, 2012 the BPAI entered a judgment denying the request for rehearing.  The Company decided not to appeal as additional litigation would be costly and time-consuming and would divert the attention of management and key personnel from business operations.
	On May 24, 2011 Patent No. US 7,949,534 was issued by the U.S. Patent and Trademark Office. In accordance with 35 USC 154, the patent shall be for a term beginning May 24, 2011 and ending 20 years from the application date of the parent application (US Patent No. #7,558,730) of November 27, 2001.  The patent will expire on November 27, 2021.  The deferred fees were capitalized during the quarter ended June 30, 2011 and the Company began amortization.
	On March 6, 2012 Patent No. US 8,131,557 was issued by the U.S. Patent and Trademark Office.  In accordance with 35 USC 154, the patent shall be for a term beginning March 6, 2012 and ending 20 years from the application date of the parent application (US Patent No. 7,558,730) of November 27, 2001.  The patent will expire on November 27, 2021.  The deferred fees were capitalized during the quarter ended March 31, 2012 and the Company began amortization.
	On July 30, 2013 Patent No. US 8,498,871 titled “Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” was issued by the U.S. Patent and Trademark Office. In accordance with 35 USC 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.  The patent will expire on 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 with the U.S. Patent and Trademark Office entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols.”
	Amortization at March 31, 2014 is as follows:
	SCHEDULE OF INTANGIBLE ASSETS
	31-Mar-14
	U.S. Patent #			Carrying Value		Amortization		Balance
	5,960,447		$	63,247	$	61,136	$	2,111
	7,558,730			58,277		22,287		35,990
	7,949,534			3,365		939		2,426
	8,131,557			5,092		1,089		4,003
	8,498,871			21,114		1,688		19,426
			$	151,095	$	87,139	$	63,956
	Amortization expense totaled $3,069 and $2,436 for the three months ended March 31, 2014 and 2013, respectively.  Estimated aggregate amortization expense for each of the next five years is as follows:
	SCHEDULE OF FUTURE AMORTIZATION
	Year ending December 31,
	2014		8,155
	2015		8,059
	2016		8,059
	2017		8,059
	2018		8,059
	Thereafter		23,565
	Total	$	63,956
	Fixed Assets
	Depreciation expense totaled $293 and $331 for the three months ended March 31, 2014 and 2013 respectively.
	PROPERTY PLANT AND EQUIPMENT
				31-Mar-14			31-Mar-13
	Computer equipment		$	6,627		$	6,627
	Computer software			3,640			3,640
				10,267			10,267
	Less accumulated depreciation			-7,473			-7,180
	Computer software and equipment, net		$	2,794		$	3,087

Note_4_Related_Party_Transacti

Note 4. Related Party Transactions	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 4. Related Party Transactions	'
	Contributed Services
	During the years from 2000 through 2013 the Company’s officers and employees contributed management services and administrative services. The fair value of those services totaling $2,317,982 was recorded in the accompanying financial statements based on the prevailing rates for such services, with a corresponding credit to Additional paid-in capital. AVRS currently pays salaries to its two employees.
	Indebtedness to Related Parties
	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 $-0- at March 31, 2014 and December 31, 2013.  The Company also owed the officers aggregate of $162,497 at March 31, 2014 for accrued payroll.

Note_5_Income_Taxes

Note 5. Income Taxes	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 5. Income Taxes	'
	The Company is considered a start-up company for income tax purposes. As of March 31, 2014, 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 March 31, 2014.
	INCOME TAXES
		December 31,
		2013		2012
	U.S. federal statutory graduated rate		34.00%	34.00%
	State income tax rate, net of federal benefit		0.00%	0.00%
	Rent &services		-0.45%	-0.45%
	Costs capitalized under Section 195		-33.55%	-33.55%
	Effective rate		0.00%	0.00%

Note_6_Concentration_of_Risk

Note 6. Concentration of Risk	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 6. Concentration of Risk	'
	Beginning March 31, 2010, through March 31, 2014, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of the account, at all FDIC-insured institutions.  On March 31, 2014, the Company had cash balances at one FDIC insured financial institution of $14,647 in non-interest bearing accounts that were fully insured by the FDIC.

Note_7_Stockholder_Equity_defi

Note 7. Stockholder Equity / (deficit)	3 Months Ended
	Mar. 31, 2014
Notes	'
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	3 Months Ended
	Mar. 31, 2014
Notes	'
Note 8. Subsequent Events	'
	None

Note_2_Significant_Accounting_1

Note 2. Significant Accounting Policies: Going Concern (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
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. As shown in the accompanying financial statements, the Company is a development stage enterprise with losses since Inception and a net capital deficit. These factors, among others, may indicate that 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 years ended December 31, 2012 and 2011, the Company’s President loaned or advanced the Company funds for working capital on an “as needed” basis. There is no assurance that these loans or advances will continue in the future.   During the twelve months ended December 31, 2013 the Company received an aggregate of $123,010 from the sale of shares in private offerings of its common stock.  During the three months ended March 31, 2014 the Company received an aggregate of $28,200 from the sale of shares in private offerings of its common stock.

Note_2_Significant_Accounting_2

Note 2. Significant Accounting Policies: Use of Estimates (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
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_Accounting_3

Note 2. Significant Accounting Policies: Basis of Consolidation (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
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_Accounting_4

Note 2. Significant Accounting Policies: Cash and Cash Equivalents (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
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 March 31, 2014 of $14,647, and $13,995 cash at December 31, 2013.  No amounts resulted from cash equivalents.

Note_2_Significant_Accounting_5

Note 2. Significant Accounting Policies: Financial Instruments (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
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_Accounting_6

Note 2. Significant Accounting Policies: Fixed Assets (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
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_Accounting_7

Note 2. Significant Accounting Policies: Revenue Recognition (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Revenue Recognition	'
	Revenue from the sale of inventory is recognized on the date of sale, title and risk of loss have transferred to the purchaser, the fees are fixed or determinable and collection is reasonably assured. Revenue from the performance of services is recognized when services have been completed and collection is probable. There are no multiple element sales and no history of material returns. The revenue recognition policies relate to operations performed prior to the Company’s reverse acquisition.

Note_2_Significant_Accounting_8

Note 2. Significant Accounting Policies: Income Taxes (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
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_Accounting_9

Note 2. Significant Accounting Policies: Patents, Deferred Costs and Amortization (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
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. If a patent application is denied or expires, the costs incurred are charged to operations in the year the application is denied or expires. The Company amortizes its patents over an estimated useful life of twenty years.

Recovered_Sheet1

Note 2. Significant Accounting Policies: Impairment and Disposal of Long-lived Assets (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
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 – “Impairment or Disposal of Long Lived Assets” subsections” . ASC 306-10 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted future cash flows estimated to be generated by those assets are less than the assets’ carrying amount. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying value or fair value, less costs to sell.  The Company’s last impairment analysis was completed effective December 31, 2013.  Impairment recorded for each of the three months ended March 31, 2014 and 2013 was $-0-.  See Note 3.

Recovered_Sheet2

Note 2. Significant Accounting Policies: Gain From Early Extinguishment of Debt (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Gain From Early Extinguishment of Debt	'
	At December 31, 2013 the Company extinguished twelve year old debt.  In addition the law firm which represented the Company in the interference matter closed their files on July 15, 2013 which extinguished that debt.  In accordance with ASC 470-50-40-2 the Company recorded the gain of $213,240 on the early extinguishment of debt in other income on the face of the financial documents.

Recovered_Sheet3

Note 2. Significant Accounting Policies: Loss Per Common Share (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
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 March 31, 2014 and 2013, there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding.

Recovered_Sheet4

Note 2. Significant Accounting Policies: Fair Value of Financial Instruments (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
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.

Recovered_Sheet5

Note 2. Significant Accounting Policies: Subsequent Events (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Subsequent Events	'
	None

Note_3_Intangible_and_Fixed_As1

Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets by Major Class (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Finite-Lived Intangible Assets by Major Class	'
	31-Mar-14
	U.S. Patent #		Carrying Value		Amortization		Balance
	5,960,447	$	63,247	$	61,136	$	2,111
	7,558,730		58,277		22,287		35,990
	7,949,534		3,365		939		2,426
	8,131,557		5,092		1,089		4,003
	8,498,871		21,114		1,688		19,426
		$	151,095	$	87,139	$	63,956

Note_3_Intangible_and_Fixed_As2

Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	'
	Year ending December 31,
	2014		8,155
	2015		8,059
	2016		8,059
	2017		8,059
	2018		8,059
	Thereafter		23,565
	Total	$	63,956

Note_3_Intangible_and_Fixed_As3

Note 3. Intangible and Fixed Assets: Property Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Property Plant and Equipment	'
			31-Mar-14		31-Mar-13
	Computer equipment	$	6,627	$	6,627
	Computer software		3,640		3,640
			10,267		10,267
	Less accumulated depreciation		-7,473		-7,180
	Computer software and equipment, net	$	2,794	$	3,087

Note_3_Intangible_and_Fixed_As4

Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets by Major Class (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Carrying Value	$151,095	'
Amortization	87,139	'
Patent, net	63,956	67,025
5,960,447	'	'
Carrying Value	63,247	'
Amortization	61,136	'
Patent, net	2,111	'
7,558,730	'	'
Carrying Value	58,277	'
Amortization	22,287	'
Patent, net	35,990	'
7,949,534	'	'
Carrying Value	3,365	'
Amortization	939	'
Patent, net	2,426	'
8,131,557	'	'
Carrying Value	5,092	'
Amortization	1,089	'
Patent, net	4,003	'
8,498,871	'	'
Carrying Value	21,114	'
Amortization	1,688	'
Patent, net	$19,426	'

Note_3_Intangible_and_Fixed_As5

Note 3. Intangible and Fixed Assets (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Details	'	'
Finite-Lived Intangible Assets Amortization Expense	$3,069	$2,436
Depreciation Expense	$293	$331

Note_3_Intangible_and_Fixed_As6

Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Details	'
Future Amortization Expense, Year One	$8,155
2015	8,059
2016	8,059
2017	8,059
2018	8,059
Thereafter	23,565
Total	$63,956

Note_3_Intangible_and_Fixed_As7

Note 3. Intangible and Fixed Assets: Property Plant and Equipment (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Details	'	'	'
Computer equipment	$6,627	'	$6,627
Computer software	3,640	'	3,640
Less accumulated depreciation	-7,473	'	-7,180
Computer software and equipment, net	$2,794	$3,087	$3,087

Note_5_Income_Taxes_Details

Note 5. Income Taxes (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Details	'	'
federal statutory graduated rate	34.00%	34.00%
State income tax rate, net of federal benefit	0.00%	0.00%
Rent & Services	-0.45%	-0.45%
Costs capitalized under Section 195	-33.55%	-33.55%
Effective rate	0.00%	0.00%