Document and Entity Information
| Document and Entity Information | 6 Months Ended |
| Jun. 30, 2018USD ($)shares | |
| Document and Entity Information: | |
| Entity Registrant Name | Advanced Voice Recognition Systems, Inc. |
| Document Type | 10-Q |
| Document Period End Date | Jun. 30, 2018 |
| Amendment Flag | false |
| Entity Central Index Key | 1,342,936 |
| Current Fiscal Year End Date | --12-31 |
| Entity Common Stock, Shares Outstanding | shares | 254,820,268 |
| Entity Public Float | $ | $ 1,045,339 |
| 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 | 2,018 |
| Document Fiscal Period Focus | Q2 |
| Trading Symbol | avoi |
Statement of Financial Position
| Statement of Financial Position - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
| Assets, Current | ||
| Cash and Cash Equivalents, at Carrying Value | $ 7,706 | $ 7,257 |
| Assets, Current | 7,706 | 7,257 |
| Assets, Noncurrent | ||
| Patent, net | 50,739 | 53,204 |
| Deferred costs | 3,595 | |
| Assets, Noncurrent | 50,739 | 56.799 |
| Assets | 58,445 | 64,056 |
| Liabilities, Current | ||
| Accounts payable, Current | 128,820 | 126,502 |
| Accrued liabilities, Current | 162,382 | 162,382 |
| Notes Payable, Current | 19,935 | 19,935 |
| Accrued Interest | 6,978 | 5,981 |
| Liabilities, Current | 318,115 | 314,800 |
| Liabilities | 318,115 | 314,800 |
| StockholdersEquity | ||
| Common Stock, Value, Issued | 254,820 | 243,920 |
| Additional Paid-in Capital, Common Stock | 7,808,048 | 7,788,248 |
| Retained Earnings (Accumulated Deficit ) | (8,322,538) | (8,282,912) |
| Stockholders Equity | (259,670) | (250,744) |
| Liabilities and Equity | $ 58,445 | $ 64,056 |
Statements of Operations
| Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
| Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
| Operating Expenses | ||||
| Compensation | $ 1,325 | $ 5,434 | $ 1,394 | $ 8,760 |
| Professional fees | 1,665 | 6,466 | 19,947 | 29,331 |
| General and Administrative Expense | 5,714 | 5,004 | 11,536 | 10,515 |
| Travel | 393 | 256 | 393 | 256 |
| Other General Expense | 687 | 722 | 1,784 | 1,529 |
| Operating Expenses | 9,784 | 17,882 | 35,054 | 50,391 |
| Operating Income (Loss) | (9,784) | (17,882) | (35,054) | (50,391) |
| Interest and Debt Expense | ||||
| Interest Expense | (2,551) | (2,205) | (4,572) | (4,665) |
| Interest and Debt Expense | (2,551) | (2,205) | (4,572) | (4,665) |
| Net Income (Loss) | $ (12,335) | $ (20,087) | $ (39,626) | $ (55,056) |
| Weighted Average Number of Shares Outstanding, Basic | 253,728,046 | 235,633,046 | 250,419,157 | 233,586,379 |
Statement of Cash Flows
| Statement of Cash Flows - USD ($) | 6 Months Ended | |
| Jun. 30, 2018 | Jun. 30, 2017 | |
| Net Cash Provided by (Used in) Operating Activities | ||
| Net Income (Loss) | $ (39,626) | $ (55,056) |
| Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities | ||
| Amortization | 7,040 | 6,728 |
| Increase (Decrease) in Operating Liabilities | ||
| Increase (Decrease) in Accounts Payable and Accrued Liabilities | 3,315 | 11,845 |
| Net Cash Provided by (Used in) Operating Activities | (29,271) | (36,483) |
| Net Cash Provided by (Used in) Investing Activities | ||
| Payments to Acquire Intangible Assets | (980) | |
| Payments for deferred costs | (1,450) | |
| Net Cash Provided by (Used in) Investing Activities | (980) | (1,450) |
| Net Cash Provided by (Used in) Financing Activities | ||
| Proceeds from Issuance of Common Stock | 30,700 | 49,500 |
| Net Cash Provided by (Used in) Financing Activities | 30,700 | 49,500 |
| Cash and Cash Equivalents, Period Increase (Decrease) | 449 | 11,567 |
| Cash and Cash Equivalents, at Carrying Value | 7,257 | 9,454 |
| Cash and Cash Equivalents, at Carrying Value | 7,706 | 21,021 |
| Supplemental Disclosure of Cash Flow Information: | ||
| Interest | $ 3,517 | $ 4,665 |
Note 1. Nature of Operations
| Note 1. Nature of Operations | 6 Months Ended |
| Jun. 30, 2018 | |
| 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 industrys 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 140 million 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 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 Purchase Agreements During the year ended December 31, 2017 the Company entered into Stock Purchase Agreements for the private sale to thirteen persons or entities 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 six months ended June 30, 2018, the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 10,900,000 shares of the common stock for aggregate proceeds of $30,700, full payment of which was received in the period. 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 June 30, 2018. 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 AVRSs 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 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 June 21, 2018, Advanced Voice Recognition Systems, Inc. ( AVRS Agreement the Firm |
Note 2. Significant Accounting
| Note 2. Significant Accounting Policies | 6 Months Ended |
| Jun. 30, 2018 | |
| Notes | |
| Note 2. Significant Accounting Policies | Unaudited Financial Information The accompanying financial information at June 30, 2018 and for the six months ended June 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 Companys financial position at June 30, 2018 and its operating results for the six months ended June 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 Companys 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 six months ended June 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 $259,670 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 Companys 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 six months ended June 30, 2018 the Company received an aggregate of $30,700 from the sale of shares in private offerings of its common stock. The Companys 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 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. 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 June 30, 2018 of $7,706, $7,257 at December 31, 2017 and $21,021 cash at June 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 Companys 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 June 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 | 6 Months Ended |
| Jun. 30, 2018 | |
| 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 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 June 30, 2018 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 Ended June 30, 2018 U.S. Patent # Carrying Value Amortization Balance 7,558,730 58,277 42,228 16,049 7,949,534 3,365 2,269 1,096 8,131,557 5,092 3,308 1,784 8,498,871 21,114 12,449 8,665 9,142,217 35,068 16,186 18,882 9,934,786 4,575 312 4,263 $ 127,491 $ 76,752 $ 50,739 |
Note 4. Related Party Transacti
| Note 4. Related Party Transactions | 6 Months Ended |
| Jun. 30, 2018 | |
| Notes | |
| 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 Companys operations. The Company owed the officers $-0- at June 30, 2018 and 2017. The Company also owed the officers aggregate of $162,382 at June 30, 2018 and December 31, 2017 for accrued payroll. During the period of six months ending June 30, 2018, and June 30, 2017 the Company paid gross payroll of $1,394 and $8,760 to the CEO and for payroll expenses. During the six month period ending June 30, 2018, AVRS completed Stock Purchase Agreements totaling 10,900,000 shares of AVRS stock to three shareholders. All shares were paid in the period ending June 30, 2018, for a total amount of $30,700. At period ending June 30, 2018 one shareholder owned 5.31% of the issued and outstanding stock. |
Note 5. Income Taxes
| Note 5. Income Taxes | 6 Months Ended |
| Jun. 30, 2018 | |
| Notes | |
| Note 5. Income Taxes | A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows. INCOME TAXES 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 June 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 June 30, 2018. |
Note 6. Concentration of Risk
| Note 6. Concentration of Risk | 6 Months Ended |
| Jun. 30, 2018 | |
| Notes | |
| Note 6. Concentration of Risk | Beginning March 31, 2010, through June 30, 2018, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of $250,000, at all FDIC-insured institutions. On June 30, 2018, the Company had cash balances at one FDIC insured financial institution of $7,706 in non-interest bearing accounts that were fully insured by the FDIC. |
Note 7. Stockholder Equity _ (d
| Note 7. Stockholder Equity / (deficit) | 6 Months Ended |
| Jun. 30, 2018 | |
| Notes | |
| Note 8. 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 | 6 Months Ended |
| Jun. 30, 2018 | |
| Notes | |
| Note 9. Subsequent Events | Subsequent to the period end, the Company entered into one Stock Purchase Agreement for 700,000 restricted shares of Company stock. AVRS filed a Complaint in the United States District Court Northern District for Arizona (Case No. 2-18-cv-2083) on July 3, 2018, and alleges that Apple products infringe U.S. Patent No. 7,558,730 entitled Speech Recognition and Transcription Among Users Having Heterogeneous Protocols (the 730 Patent). AVRS is seeking, among other things, a judgement of infringement, past damages no less than a reasonable royalty, attorneys fees, pre and post judgement interest and costs including expenses and disbursements and any other relief deemed proper by the Court. On August 1, 2018 AVRS and M&A 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 payment has been paid. |
Note 2. Significant Accountin13
| Note 2. Significant Accounting Policies: Use of Estimates (Policies) | 6 Months Ended |
| Jun. 30, 2018 | |
| 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 Accountin14
| Note 2. Significant Accounting Policies: Basis of Consolidation (Policies) | 6 Months Ended |
| Jun. 30, 2018 | |
| 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 Accountin15
| Note 2. Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 6 Months Ended |
| Jun. 30, 2018 | |
| 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 June 30, 2018 of $7,706, $7,257 at December 31, 2017 and $21,021 cash at June 30, 2017. No amounts resulted from cash equivalents. |
Note 2. Significant Accountin16
| Note 2. Significant Accounting Policies: Financial Instruments (Policies) | 6 Months Ended |
| Jun. 30, 2018 | |
| 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 Accountin17
| Note 2. Significant Accounting Policies: Fixed Assets (Policies) | 6 Months Ended |
| Jun. 30, 2018 | |
| 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 Accountin18
| Note 2. Significant Accounting Policies: Income Taxes (Policies) | 6 Months Ended |
| Jun. 30, 2018 | |
| 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 Companys 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 Accountin19
| Note 2. Significant Accounting Policies: Patents, Deferred Costs and Amortization (Policies) | 6 Months Ended |
| Jun. 30, 2018 | |
| 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. 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 Accountin20
| Note 2. Significant Accounting Policies: Impairment and Disposal of Long-lived Assets (Policies) | 6 Months Ended |
| Jun. 30, 2018 | |
| 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 Accountin21
| Note 2. Significant Accounting Policies: Loss Per Common Share (Policies) | 6 Months Ended |
| Jun. 30, 2018 | |
| 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 June 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 Accountin22
| Note 2. Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 6 Months Ended |
| Jun. 30, 2018 | |
| 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: |
Note 3. Intangible and Fixed 23
| Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets by Major Class (Tables) | 6 Months Ended |
| Jun. 30, 2018 | |
| Tables/Schedules | |
| Schedule of Finite-Lived Intangible Assets by Major Class | Ended June 30, 2018 U.S. Patent # Carrying Value Amortization Balance 7,558,730 58,277 42,228 16,049 7,949,534 3,365 2,269 1,096 8,131,557 5,092 3,308 1,784 8,498,871 21,114 12,449 8,665 9,142,217 35,068 16,186 18,882 9,934,786 4,575 312 4,263 $ 127,491 $ 62,182 $ 50,739 |
Note 3. Intangible and Fixed 24
| Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Tables) | 6 Months Ended |
| Jun. 30, 2018 | |
| Tables/Schedules | |
| Schedule of Finite-Lived Intangible Assets Future Amortization Expense | Ending June 30, 2018 2018 7,350 2019 14,702 2020 14,702 2021 13,985 Total $ 50,739 |
Note 3. Intangible and Fixed 25
| Note 3. Intangible and Fixed Assets: Property Plant and Equipment (Tables) | 6 Months Ended |
| Jun. 30, 2018 | |
| Tables/Schedules | |
| Property Plant and Equipment | June 30, 2018 June 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) Computer software and equipment, net $ 0 $ 0 |
Note 3. Intangible and Fixed 26
| Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets by Major Class (Details) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
| Carrying Value | $ 127,491 | ||
| Amortization | 76,752 | ||
| Patent, net | $ 50,739 | 50,739 | $ 53,204 |
| 7,558,730 | |||
| Carrying Value | 58,277 | ||
| Amortization | 42,228 | ||
| Patent, net | 16,049 | ||
| 7,949,534 | |||
| Carrying Value | 3,365 | ||
| Amortization | 2,269 | ||
| Patent, net | 1,096 | ||
| 8,131,557 | |||
| Carrying Value | 5,092 | ||
| Amortization | 3,308 | ||
| Patent, net | 1,784 | ||
| 8,498,871 | |||
| Carrying Value | 21,114 | ||
| Amortization | 12,449 | ||
| Patent, net | 8,665 | ||
| 9,142,217 | |||
| Carrying Value | 35,068 | ||
| Amortization | 16,186 | ||
| Patent, net | 18,882 | ||
| N9934786Member | |||
| Carrying Value | 4,575 | ||
| Amortization | 312 | ||
| Patent, net | $ 4,263 |
Note 3. Intangible and Fixed 27
| Note 3. Intangible and Fixed Assets (Details) - USD ($) | 6 Months Ended | |
| Jun. 30, 2018 | Jun. 30, 2017 | |
| Details | ||
| Finite-Lived Intangible Assets Amortization Expense | $ 7,040 | $ 6,728 |
Note 3. Intangible and Fixed 28
| Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
| Details | |||
| Future Amortization Expense, Year One | $ 7,350 | ||
| 2,019 | 14,702 | ||
| 2,020 | 14,702 | ||
| 2,021 | 13,985 | ||
| Total | $ 50,739 | $ 50,739 | $ 53,204 |
Note 3. Intangible and Fixed 29
| Note 3. Intangible and Fixed Assets: Property Plant and Equipment (Details) - USD ($) | Jun. 30, 2018 | Jun. 30, 2017 |
| 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% |