Rivulet Entertainment (RIVF) 10-K/A 24 Sep 18 2017 FY Annual report (amended) Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2017
Document and Entity Information:
Entity Registrant Name	Advanced Voice Recognition Systems, Inc.
Document Type	10-K
Document Period End Date	Dec. 31, 2017
Amendment Flag	false
Entity Central Index Key	1,342,936
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	243,920,268
Entity Public Float		$ 1,913,992
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	2,017
Document Fiscal Period Focus	FY
Trading Symbol	avoi

Statement of Financial Position

Statement of Financial Position - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Assets, Current
Cash and Cash Equivalents, at Carrying Value	$ 7,257	$ 9,454
Assets, Current	7,257	9,454
Assets, Noncurrent
Patent, net	53,204	66,658
Deferred costs	3,595	1,485
Assets, Noncurrent	56,799	68,143
Assets	64,056	77,597
Liabilities, Current
Accounts payable, Current	126,502	109,393
Accrued liabilities, Current	162,382	162,383
Notes Payable, Current	19,935	19,935
Accrued Interest	5,981	3,987
Liabilities, Current	314,800	295,698
Liabilities	314,800	295,698
StockholdersEquity
Common Stock, Value, Issued	243,920	230,395
Additional Paid-in Capital, Common Stock	7,788,248	7,741,773
Retained Earnings (Accumulated Deficit )	(8,282,912)	(8,190,269)
Stockholders Equity	(250,744)	(218,101)
Liabilities and Equity	$ 64,056	$ 77,597

Statements of Operations

Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Operating Expenses
Compensation	$ 13,647	$ 3,928
Professional fees	42,736	34,558
General and Administrative Expense	23,120	25,397
Travel	298	320
Other General Expense	2,503	1,689
Operating Expenses	82,304	65,892
Operating Income (Loss)	(82,304)	(65,892)
Interest and Debt Expense
Interest Expense	(10,339)	(10,954)
Interest and Debt Expense	(10,339)	(10,954)
Net Income (Loss)	$ (92,643)	$ (76,846)
Weighted Average Number of Shares Outstanding, Basic	237,328,898	227,639,241

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, 2015	$ 224,595	$ 7,702,248	$ (8,113,423)	$ (186,580)
Shares, Issued, Starting Balance at Dec. 31, 2015	224,595,268
Stock Issued During Period, Value	$ 5,800	39,525		45,325
Stock Issued During Period, Shares	5,800,000
Net Loss			(76,846)	(76,846)
Shares, Issued, Ending Balance at Dec. 31, 2016	230,395,268
Stockholders Deficit, Ending Balance at Dec. 31, 2016	$ 230,395	7,741,773	(8,190,269)	(218,101)
Stock Issued During Period, Value	$ 13,525	60,000		73,525
Stock Issued During Period, Shares	13,525,000
Net Loss			(92,643)	(92,643)
Shares, Issued, Ending Balance at Dec. 31, 2017	243,920,268
Stockholders Deficit, Ending Balance at Dec. 31, 2017	$ 243,920	$ 7,788,248	$ (8,282,912)	$ (250,744)

Statement of Cash Flows

Statement of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Net Cash Provided by (Used in) Operating Activities
Net Income (Loss)	$ (92,643)	$ (76,846)
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Amortization	13,454	14,191
Increase (Decrease) in Operating Liabilities
Increase (Decrease) in Accounts Payable and Accrued Liabilities	19,102	18,387
Net Cash Provided by (Used in) Operating Activities	(60,087)	(44,268)
Net Cash Provided by (Used in) Investing Activities
Payments for deferred costs	(2,110)
Net Cash Provided by (Used in) Investing Activities	(2,110)
Net Cash Provided by (Used in) Financing Activities
Proceeds from Issuance of Common Stock	60,000	45,325
Payments on promissory note from shareholder		(600)
Net Cash Provided by (Used in) Financing Activities	60,000	44,725
Cash and Cash Equivalents, Period Increase (Decrease)	(2,197)	457
Cash and Cash Equivalents, at Carrying Value	9,454	8,997
Cash and Cash Equivalents, at Carrying Value	7,257	9,454
Supplemental Disclosure of Cash Flow Information:
Interest	$ 8,345	$ 8,960

Note 1. Nature of Operations

Note 1. Nature of Operations	12 Months Ended
	Dec. 31, 2017
Notes
Note 1. Nature of Operations	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 has continued 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 has currently engaged a firm to investigate and asserting claims relating to certain patents including negotiating licensing agreements and the filing and prosecution of lawsuits. 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. Stock Purchase Agreements During the year ended December 31, 2017 the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 13,525,000 shares of the common stock for aggregate proceeds of $60,000, full payment of which was received in the period. During the year ended December 31, 2016, the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 5,800,000 shares of the common stock for aggregate proceeds of $45,325, all of which was received in 2016. 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. Commitments and Contingencies On April 20, 2015 Advanced Voice Recognition Systems, Inc. (AVRS) entered into a Material Letter Agreement with an unrelated third party (Third Party) in which they promise to pay to patent legal counsel funds to continue prosecuting Patents on behalf of AVRS. AVRS promises to pay to the Third Party, or to such other holder of this promissory note (Note) as designate, the principal, together with any additional amounts owed pursuant to the terms set forth in this Note. Interest at 2% was accrued and reported at December 31, 2017. On August 20, 2015, Advanced Voice Recognition Systems, Inc. (AVRS) entered into a letter agreement with unrelated third party (Third Party) pursuant to which the Third Party will provide strategic advisory services to AVRS to support the common goal of the acquisition, sale, licensing, prosecution, enforcement, and settlement with respect to AVRS’s intellectual property, including patents held by AVRS. The Third Party has agreed to advance costs recommended by it, including court filing fees, discovery and other litigation costs, and patent prosecution costs, up to an aggregate of $10,000,000. AVRS will be responsible for costs not recommended by the Third Party, as well as travel and ordinary business expenses incurred by AVRS. Except for the advanced costs by the Third Party, AVRS will be responsible for any contingency payments to law firms. Any and all advanced costs will only become liabilities if successful. On June 28, 2017 AVRS and the Third Party agreed to terminate the August 20, 2015 Letter Agreement. AVRS did not incur any material early termination penalties in connection of the early termination of the agreement. On November 1, 2016, Advanced Voice Recognition Systems, Inc. (“ AVRS Agreement Patent Rights

Note 2. Significant Accounting

Note 2. Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
Notes
Note 2. Significant Accounting 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. 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, 2017 the Company received an aggregate of $60,000 from the sale of shares in private offerings of its common stock. During the twelve months ended December 31, 2016 the Company received an aggregate of $45,325 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 AVRS and Dominion agreed to terminate the August 20, 2015 Letter Agreement. In addition the Company has entered into a 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, 2017 Dominion Harbor Letter Agreement. AVRS is working with BJC to secure the funding for pending litigation. There is no guarantee that these efforts will be successful or 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 December 31, 2017 of $7,257, and $9,454 cash at December 31, 2016. 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. 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. 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 the lesser of their estimated useful life or twenty years from the patent application date. 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 December 31, 2017 and 2016, 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. Recent Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) periodically issues new accounting standards in a continuing effort to improve standards of financial accounting and reporting. The Company has reviewed the recently issued pronouncements. The Company believes that there would be no material effect on the presentation of the financial statements.

Note 3. Intangible and Fixed As

Note 3. Intangible and Fixed Assets	12 Months Ended
	Dec. 31, 2017
Notes
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 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 U.S. Patent #5,960,447, “Word Tagging and Editing System for Speech Recognition”. In accordance with 35 U.S.C. 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 expired on November 13, 2015. 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 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 fourth 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, 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 abandon by the Company. Deferred costs were charged to operations the quarter ended September 30, 2015. On August 10, 2015, the Company filed a continuation application, 14/821,786 with the U.S. Patent and Trademark Office. Costs of $1,484.67 were deferred during the third quarter of 2015. On January 6, 2017 application 14/821,786 was abandon and application 15/400,732 was filed. Deferred costs of $1,484.67 were transferred to the current application. Deferred costs of $2110.00 accrued in the period ending December 31, 2017. 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. Amortization at December 31, 2017 is as follows: SCHEDULE OF INTANGIBLE ASSETS Ended December 31, 2016 U.S. Patent # Carrying Value Amortization Balance 5,960,447 $ 63,247 $ 63,247 $ -- 7,558,730 58,277 35,190 23,087 7,949,534 3,365 1,800 1,565 8,131,557 5,092 2,524 2,568 8,498,871 21,114 8,651 12,463 9,142,217 35,068 8,093 26,975 $ 186,163 $ 119,505 $ 66,658 Ended December 31, 2017 U.S. Patent # Carrying Value Amortization Balance 5,960,447 $ 63,247 $ 63,247 $ -- 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 $ 186,163 $ 132,959 $ 53,204 Amortization expense totaled $13,454 and 13,454 for the years ending December 31, 2017 and 2016, respectively. Estimated aggregate amortization expense for each of the next five years is as follows: SCHEDULE OF FUTURE AMORTIZATION Year ending December 31, 2018 13,454 2019 13,454 2020 13,454 2021 12,842 $ 53,204 Fixed Assets Depreciation expense totaled $-0- for the year ended December 31, 2017 and $737 for the year ended December 31, 2016. PROPERTY PLANT AND EQUIPMENT December 31, 2017 December 31, 2016 Computer equipment $ 6,627 $ 6,627 Computer software 3,640 3,640 10,267 10,267 Less accumulated depreciation (10,267) (10,267) Computer software and equipment, net $ — $ —

Note 4. Related Party Transacti

Note 4. Related Party Transactions	12 Months Ended
	Dec. 31, 2017
Notes
Note 4. Related Party Transactions	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 December 31, 2017 and 2016 respectively. The Company also owed the officers aggregate of $162,383 at December 31, 2017 and 2016 for accrued payroll. The Company paid payroll to our President Walter Geldenhuys at December 21, 2017 and December 31, 2016 in the amounts of $12,500 and $3,500 respectively. During the year ending December 31, 2017 one shareholder purchased 4,300,000 shares of the Company’s stock and currently holds 9.6% of the issued and outstanding shares.

Note 5. Income Taxes

Note 5. Income Taxes	12 Months Ended
	Dec. 31, 2017
Notes
Note 5. Income Taxes	A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows: December 31, 2017 2016 U.S. federal statutory graduated rate 34.00% 34.00% State income tax rate, net of federal benefit 0.00% 0.00% Rent & services -18.83% -.16.06% Costs capitalized under Section 195 -15.17% -17.94% Effective rate 0.00% 0.00% The Company is considered a start-up company for income tax purposes. As of December 31, 2017, 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 December 31, 2017.

Note 6. Concentration of Risk

Note 6. Concentration of Risk	12 Months Ended
	Dec. 31, 2017
Notes
Note 6. Concentration of Risk	Beginning December 31, 2010, through December 31, 2017, all noninterest-bearing transaction accounts are fully insured, up to a balance of $250,000 at all FDIC-insured institutions. On December 31, 2017, the Company had cash balances at one FDIC insured financial institution of $7,257 in non-interest bearing accounts, which amount does not exceed the related federal deposit insurance.

Note 7. Payables and Accruals

Note 7. Payables and Accruals	12 Months Ended
	Dec. 31, 2017
Notes
Note 7. Payables and Accruals	On April 20, 2015 Advanced Voice Recognition Systems, Inc. (AVRS) entered into a Material Letter Agreement with an unrelated third party (Third Party) in which they promise to pay to patent legal counsel funds to continue prosecuting Patents on behalf of AVRS. AVRS promises to pay to the Third Party, or to such other holder of this promissory note (Note) as designate, the principal, together with any additional amounts owed pursuant to the terms set forth in this Note. Interest at 2% was accrued and reported at December 31, 2017. 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 and March payment have been made.

Note 8. Stockholder Equity _ (d

Note 8. Stockholder Equity / (deficit)	12 Months Ended
	Dec. 31, 2017
Notes
Note 8. Stockholder Equity / (deficit)	The Company has issued shares of its common stock pursuant to certain agreements as described in Note 1. Stock Purchase agreements have been filed by 8K at www.sec.gov.

Note 9. Subsequent Events

Note 9. Subsequent Events	12 Months Ended
	Dec. 31, 2017
Notes
Note 9. Subsequent Events	On January 31, 2018 AVRS entered into a Settlement Agreement and Promissory Note with Meyers & Associates, LLC. On February 16, 2018 AVRS agreed to extend the Adapt IP Letter Agreement of March 16, 2015 and the Promissory Note of April 20, 2015. Interest of $5,981 has accrued through December 31, 2017. The extension provides for the same terms agreed upon on Apri 20, 2015.

Note 2. Significant Accountin15

Note 2. Significant Accounting Policies: Use of Estimates (Policies)	12 Months Ended
	Dec. 31, 2017
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 Accountin16

Note 2. Significant Accounting Policies: Basis of Consolidation (Policies)	12 Months Ended
	Dec. 31, 2017
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 Accountin17

Note 2. Significant Accounting Policies: Cash and Cash Equivalents (Policies)	12 Months Ended
	Dec. 31, 2017
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 December 31, 2017 of $7,257, and $9,454 cash at December 31, 2016. No amounts resulted from cash equivalents.

Note 2. Significant Accountin18

Note 2. Significant Accounting Policies: Financial Instruments (Policies)	12 Months Ended
	Dec. 31, 2017
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 Accountin19

Note 2. Significant Accounting Policies: Fixed Assets (Policies)	12 Months Ended
	Dec. 31, 2017
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 Accountin20

Note 2. Significant Accounting Policies: Revenue Recognition (Policies)	12 Months Ended
	Dec. 31, 2017
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 Accountin21

Note 2. Significant Accounting Policies: Income Taxes (Policies)	12 Months Ended
	Dec. 31, 2017
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 Accountin22

Note 2. Significant Accounting Policies: Patents, Deferred Costs and Amortization (Policies)	12 Months Ended
	Dec. 31, 2017
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 the lesser of their estimated useful life or twenty years from the patent application date.

Note 2. Significant Accountin23

Note 2. Significant Accounting Policies: Impairment and Disposal of Long-lived Assets (Policies)	12 Months Ended
	Dec. 31, 2017
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

Note 2. Significant Accountin24

Note 2. Significant Accounting Policies: Loss Per Common Share (Policies)	12 Months Ended
	Dec. 31, 2017
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 December 31, 2017 and 2016, there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding.

Note 2. Significant Accountin25

Note 2. Significant Accounting Policies: Fair Value of Financial Instruments (Policies)	12 Months Ended
	Dec. 31, 2017
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.

Note 3. Intangible and Fixed 26

Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets by Major Class (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Schedule of Finite-Lived Intangible Assets by Major Class	Ended December 31, 2017 U.S. Patent # Carrying Value Amortization Balance 5,960,447 $ 63,247 $ 63,247 $ -- 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 $ 186,163 $ 132,959 $ 53,204

Note 3. Intangible and Fixed 27

Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Schedule of Finite-Lived Intangible Assets Future Amortization Expense	Year ending December 31, 2018 13,454 2019 13,454 2020 13,454 2021 12,842 $ 53,204

Note 3. Intangible and Fixed 28

Note 3. Intangible and Fixed Assets: Property Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Tables/Schedules
Property Plant and Equipment	December 31, 2017 December 31, 2016 Computer equipment $ 6,627 $ 6,627 Computer software 3,640 3,640 10,267 10,267 Less accumulated depreciation (10,267) (10,267) Computer software and equipment, net $ — $ —

Note 3. Intangible and Fixed 29

Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets by Major Class (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Carrying Value	$ 186,163	$ 186,163
Amortization	132,959	119,505
Patent, net	53,204	66,658
5,960,447
Carrying Value	63,247	63,247
Amortization	63,247	63,247
7,558,730
Carrying Value	58,277	58,277
Amortization	39,882	35,190
Patent, net	18,395	23,087
7,949,534
Carrying Value	3,365	3,365
Amortization	2,113	1,800
Patent, net	1,252	1,565
8,131,557
Carrying Value	5,092	5,092
Amortization	3,046	2,524
Patent, net	2,046	2,568
8,498,871
Carrying Value	21,114	21,114
Amortization	11,183	8,651
Patent, net	9,931	12,463
9,142,217
Carrying Value	35,068	35,068
Amortization	13,488	8,093
Patent, net	$ 21,580	$ 26,975

Note 3. Intangible and Fixed 30

Note 3. Intangible and Fixed Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Details
Finite-Lived Intangible Assets Amortization Expense	$ 13,454	$ 13,454
Depreciation Expense		$ 737

Note 3. Intangible and Fixed 31

Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Details
Future Amortization Expense, Year One	$ 13,454
2,019	13,454
2,020	13,454
2,021	12,842
Total	$ 53,204	$ 66,658

Note 3. Intangible and Fixed 32

Note 3. Intangible and Fixed Assets: Property Plant and Equipment (Details) - USD ($)	Dec. 31, 2017	Dec. 31, 2016
Details
Computer equipment	$ 6,627	$ 6,627
Computer software	3,640	3,640
Less accumulated depreciation	$ 10,267	$ 10,267

Note 6. Income Taxes (Details)

Note 6. Income Taxes (Details)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Details
federal statutory graduated rate	34.00%	34.00%
State income tax rate, net of federal benefit	0.00%	0.00%
Rent & Services	(18.83%)	(16.06%)
Costs capitalized under Section 195	(15.17%)	(17.94%)
Effective rate	0.00%	0.00%