Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 13, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | Leo Motors, Inc. | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 1356564 | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 154,144,244 | ||
Entity Public Float | $2,131,038 | ||
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 | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets | ||
Cash and cash equivalents | $217,178 | $1,774 |
Accounts receivable | 542,210 | 0 |
Inventories | 279,783 | 0 |
Prepayment to suppliers | 306,969 | 197,973 |
Other current assets | 49,705 | 5,463 |
Total Current Assets | 1,395,845 | 205,210 |
Fixed assets, net | 38,620 | 35,996 |
Deposit | 51,601 | 76,321 |
Other non-current assets | 63,831 | 63,831 |
Investments | 0 | 762,000 |
Goodwill | 2,444,558 | 0 |
Total Assets | 3,994,455 | 1,143,358 |
Current Liabilities: | ||
Accounts payable and accrued expenses | 2,152,951 | 702,983 |
Short term borrowings | 448,801 | 167,373 |
Advance from customers | 40,951 | 435,439 |
Due to related parties | 150,637 | 150,637 |
Taxes payable | 159,478 | 143,210 |
Notes Payable net of discount of $275,176 | 526,257 | 0 |
Derivative liability | 819,922 | 0 |
Total Current Liabilities | 4,298,997 | 1,599,642 |
Accrued retirement benefits | 2,150 | 62,036 |
Notes Payable | 145,316 | 0 |
Total Liabilities | 4,446,463 | 1,661,678 |
Commitments (Note 8) | ||
Leo Motors, Inc.("LEOM") Equity(Deficit): | ||
Common stock ($0.001 par value; 220,000,000 shares authorized); 138,624,206 and 67,833,662 shares issued and outstanding at December 31, 2014 and December 31, 2013 | 138,624 | 67,834 |
Additional paid-in capital | 17,723,248 | 13,290,081 |
Accumulated other comprehensive income | 511,229 | 468,330 |
Accumulated loss | -21,357,211 | -16,871,850 |
Total Equity(Deficit) Leo Motors, Inc. | -2,984,110 | -3,045,605 |
Non-controlling interest | 2,532,102 | 2,527,285 |
Total Equity(Deficit) | -452,008 | -518,320 |
Total Liabilities and Equity(Deficit) | $3,994,455 | $1,143,358 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position | ||
Common Stock, par or stated value | $0.00 | $0.00 |
Common Stock, shares authorized | 220,000,000 | 220,000,000 |
Common Stock, shares issued | 138,624,206 | 67,833,662 |
Common Stock, shares outstanding | 138,624,206 | 67,833,662 |
Notes Payable, discount | $275,176 | $0 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement | ||
Revenues | $693,096 | $0 |
Cost of Revenues | 379,066 | 0 |
Gross Profit | 314,030 | 0 |
Operating Expenses | 3,468,599 | 875,901 |
Income(loss) from Continuing Operations | -3,154,569 | -875,901 |
Other Income (Expenses) | ||
Interest expense | -569,584 | -136,775 |
Investment impairment | -762,000 | 0 |
Derivative income | 5,609 | 0 |
Non-Operating (expense) income | 0 | -225,287 |
Total Other Income (Expenses) | -1,325,975 | -362,062 |
Income(loss) from Continuing Operations Before Income Taxes | -4,480,544 | -1,237,963 |
Income Tax Expense | 0 | 6,640 |
Net Income(Loss) | -4,480,544 | -1,244,603 |
Income (loss) attributable to non-controlling interest | 4,817 | -612,432 |
Net Income(Loss) Attributable To Leo Motors, Inc. | -4,485,361 | -632,171 |
Other Comprehensive Income: | ||
Net Income(loss) | -4,485,361 | -632,171 |
Unrealized foreign currency translation gain | -42,899 | -1,545 |
Comprehensive Income(loss) Attributable to Leo Motors, Inc. | ($4,528,260) | ($633,716) |
Net Loss per Common Share: | ||
Basic | ($0.05) | ($0.01) |
Diluted | ($0.05) | ($0.01) |
Weighted Average Common Shares Outstanding: | ||
Basic | 107,700,959 | 60,220,851 |
Diluted | 122,625,222 | 61,660,506 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | ($4,480,544) | ($1,244,603) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 19,470 | 15,157 |
Loss on conversion of debt | 24,376 | 0 |
Amortization debt discount | 340,568 | 53,748 |
Loss on derivative liabilities | -5,607 | 0 |
Foreign currency translation | 42,899 | -1,545 |
Stock-based compensation | 284,643 | 203,490 |
Impairment of investment | 762,000 | 0 |
Changes in assets and liabilities: | ||
Accounts Receivable | -542,210 | 0 |
Inventories | -279,783 | 235,255 |
Prepayment to suppliers | -108,996 | 105,484 |
Other assets | -19,522 | -4,863 |
Accounts payable, other payables and accrued expenses | 1,033,656 | -186,109 |
Accrued retirement benefits | -59,886 | -29,635 |
Advances from customers | -394,488 | -10,016 |
Taxes payable | 12,628 | -15,178 |
Net cash used in operating activities: | -3,370,796 | -878,815 |
Cash flows from investing activities: | ||
Investment in equipment | -16,846 | 0 |
Long term investments | 0 | -308,895 |
Net cash provided(used) in investing activities: | -16,846 | -308,895 |
Cash flows from financing activities: | ||
Proceeds from issuance of stock | 2,801,613 | 0 |
Proceeds from notes payable | 801,433 | 247,344 |
Payments on notes payable | 0 | -36,735 |
Contribution of minority interest | 0 | 548,568 |
Net cash provided(used) by financing activities: | 3,603,046 | 759,177 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | 215,404 | -428,533 |
Cash and cash equivalents - beginning of year | 1,774 | 430,307 |
Cash and cash equivalents - end of year | 217,178 | 1,774 |
Supplemental disclosure of cash flow activities: | ||
Interest | 0 | 0 |
Income taxes | 0 | 0 |
Supplemental disclosures of non cash activities: | ||
Debt discount due to derivative liability | 569,584 | 0 |
Common stock issued for investments | 0 | 190,000 |
Conversion of debt for common stock | 98,496 | 240,000 |
Common stock issued for services | $284,643 | $203,490 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock | Additional Paid-in Capital | Accumulated Loss | Accumulated Other Comprehensive Income | Non-Controlling Interest | Total |
Equity Balance, beginning of period, Value at Dec. 31, 2012 | $56,764 | $12,564,656 | ($16,239,697) | $469,875 | $2,584,431 | ($563,953) |
Equity Balance, beginning of period, Shares at Dec. 31, 2012 | 56,763,623 | |||||
Stock-based compensation, Value | 4,152 | 199,338 | 203,490 | |||
Stock-based compensation, Shares | 4,151,707 | |||||
Stock Issued in payment of debt, Value | 2,918 | 340,087 | 343,005 | |||
Stock Issued in payment of debt, Shares | 2,918,332 | |||||
Stock Issued for investment, Value | 4,000 | 186,000 | 190,000 | |||
Stock Issued for investment, Shares | 4,000,000 | |||||
Minority interest contributions | 555,286 | 555,286 | ||||
Net loss | -632,171 | -612,432 | -1,244,603 | |||
Foreign currency translation adjustment | -1,545 | -1,545 | ||||
Equity Balance, end of period, Value at Dec. 31, 2013 | 67,834 | 13,290,081 | -16,871,850 | 468,330 | 2,527,285 | -518,320 |
Equity Balance, end of period, Shares at Dec. 31, 2013 | 67,833,662 | |||||
Stock-based compensation, Value | 16,610 | 1,395,854 | 1,412,464 | |||
Stock-based compensation, Shares | 16,610,000 | |||||
Stock Issued in payment of debt, Value | 5,965 | 278,678 | 284,643 | |||
Stock Issued in payment of debt, Shares | 5,965,990 | |||||
Stock Issued for investment, Value | 45,978 | 2,758,635 | 2,804,613 | |||
Stock Issued for investment, Shares | 45,977,264 | |||||
Minority interest contributions, Value | 2,237 | 0 | 2,237 | |||
Minority interest contributions, Shares | 2,237,290 | |||||
Net loss | -4,485,361 | 4,817 | -4,480,544 | |||
Foreign currency translation adjustment | 42,899 | 42,899 | ||||
Equity Balance, end of period, Value at Dec. 31, 2014 | $138,624 | $17,723,248 | ($21,357,211) | $511,229 | $2,532,102 | ($452,008) |
Equity Balance, end of period, Shares at Dec. 31, 2014 | 138,624,206 |
Note_1_Company_Background
Note 1 - Company Background | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Note 1 - Company Background | NOTE 1 - COMPANY BACKGROUND |
Company Business | |
Company is currently in development, assembly and sales of the energy storage devices and electric vehicle components. | |
Background | |
Leo Motors, Inc, (the “Company”) was originally incorporated as Classic Auto Accessories, a California Corporation on July 2, 1986. The Company then underwent several name changes from FCR Automotive Group, Inc. to Shini Precision Machinery, Inc. to Simco America Inc. and then to Leo Motors. The Company had been dormant since 1989, and effectuated a reverse merger on November 12, 2007 with Leozone Inc., a South Korean Company, which is the maker of electrical transportation devices. The merger essentially exchanges shares in Leo Motors, Inc. for shares in Leozone. As this is a reverse merger the accounting treatment of such is that of a combination of the two entities with the activity of Leozone, Inc. the surviving entity, going forward. The financial statements reflect the activity for all periods presented as if the merger had occurred January 1, 2007. Leozone has continued to operate as a separate subsidiary Leo Motors Co. Ltd. of Korea since that time. | |
On February 11, 2010, the Company acquired 50% of Leo B&T Corp.,(“B&T”) a Korean Corporation, from two shareholders of B&T in exchange for 7,000,000 shares of the Company’s common stock. This percentage was reduced to 30% in 2011. Additionally, this investment was written down through an impairment expense during 2011 and the remaining investment was exchanged in 2012 for a return of Leo Motors stock. | |
On November 10, 2012 the Company and PDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., have signed a contract to supply an independent solar power system grafted with Leo Motors' E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company will have a 10% interest in the overall project. This project has incurred an impairment charge as details in these footnotes. | |
On July 1, 2014, Leo Motors, Inc., a Nevada Corporation (the “Company”) acquired all of the outstanding common stock of LGM Co. Ltd., a corporation incorporated in the Republic of Korea (“LGM”), from LGM’s shareholders, which represents 813,747 shares of LGM common stock, in exchange for 47,352,450 shares of the Company's common stock pursuant to the Share Swap Agreement entered into by and between LGM and the Company. Pursuant to the Agreement, LGM became a wholly-owned subsidiary of the Company. |
Note_2_Policies
Note 2 - Policies | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Note 2 - Policies | NOTE 2 - POLICIES |
This summary of significant account policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and the notes are the representation of the Company’s management, who are responsible for their integrity and objectivity. These accounting policies conform to U.S. generally accepted accounting principles (“USGAAP”) and have been consistently applied in the preparation of the financial statements. | |
Basis of Presentation and Consolidation | |
These financial statements and related notes are expressed in US dollars. The Company’s fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, 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. | |
Fair Value of Financial Instruments | |
For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities. | |
Revenue Recognition | |
The Company follows the guidance of the Securities and Exchange Commission’s Staff Accounting Bulletin No. 104, “Revenue Recognition in Financial Statements”. In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company. | |
The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers. | |
Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company’s published brochures and price lists. | |
Accounts Receivables | |
Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired. | |
The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance. | |
Receivables are not collateralized and do not bear interest. | |
Cash Equivalents | |
For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent. | |
Fixed Assets | |
Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense). | |
The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability. | |
Intangible and Long Lived Assets | |
The Company follows ASC 360-10, “Property, Plant, and Equipment,” which established a “primary asset” approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through December 31, 2014, the Company had not experienced impairment losses on its long-lived assets. | |
Income Taxes | |
The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, “Accounting for Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year; and, (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if, based on the weight of available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is “more likely than not” that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable. | |
Loss per Share | |
Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period. | |
Stock-Based Compensation | |
SFAS No. 123, “Accounting for Stock-Based Compensation,” establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model. | |
Foreign Currency Translation And Comprehensive Income | |
The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company’s operating subsidiary is Korean Won (“KRW”). The subsidiary’s results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. | |
Recent Accounting Pronouncements | |
The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable. |
Note_3_Earnings_Per_Share
Note 3 - Earnings Per Share | 12 Months Ended | ||
Dec. 31, 2014 | |||
Notes | |||
Note 3 - Earnings Per Share | NOTE 3 - EARNINGS PER SHARE | ||
The Company reports basic and diluted earnings per share (EPS) according to the provisions of ASC Topic 260, which requires the presentation of basic EPS and, for companies with complex capital structures, diluted EPS. Basic EPS excludes dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) available to common stockholders, adjusted by other changes in income or loss that would result from the assumed conversion of those potential common shares, by the weighted number of common shares and common share equivalents (unless their effect is antidilutive) outstanding. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports a loss because to do so would be antidilutive. Thus, these equivalents are not included in the calculation of diluted loss per share, resulting in basic and diluted loss per share being equal. The following is a reconciliation of the computation for basic and diluted EPS for the years ended December 31, 2014 and 2013: | |||
For the years ended | |||
12/31/14 | 12/31/13 | ||
Net Income (Loss) | $(4,480,544 | $(1,244,603 | |
Weighted-average common stock Outstanding - basic | 107,700,959 | 60,220,851 | |
Equivalents | |||
Stock options | - | 0 | |
Warrants | - | 0 | |
Convertible Notes | 14,924,263 | 1,439,655 | |
Weighted-average common shares | |||
outstanding- Diluted | 122,625,222 | 61,660,506 |
Note_4_Due_To_Related_Party
Note 4 - Due To Related Party | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Note 4 - Due To Related Party | NOTE 4 - DUE TO RELATED PARTY |
The company is indebted to its officer for advances. Repayment is on demand without interest. The balance was $150,637 at December 31, 2014 and 2013. |
Note_5_Payments_Received_in_Ad
Note 5 - Payments Received in Advance | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Note 5 - Payments Received in Advance | NOTE 5 - PAYMENTS RECEIVED IN ADVANCE |
The Company during the periods received payments from potential customers, or deposits, on future orders. The Company’s policy is to record these payments as a liability until the product is completed and shipped to the customer at which the Company recognizes revenue. As of December 31, 2014 and 2013, the balance of payments received in advance was $306,969 and $ 197,973, respectively. |
Note_6_Going_Concern
Note 6 - Going Concern | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Note 6 - Going Concern | NOTE 6 - GOING CONCERN |
As reported in the consolidated financial statements, the Company has accumulated deficits of as of December 31, 2014 and its current liabilities exceeded its current assets. These negative trends have been consistent over the last few years except for asset sales. | |
These factors create uncertainty about the Company's ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable and to create operations that contribute capital from normal operations. If the Company cannot obtain adequate capital it could be forced to cease operations. | |
In order to continue as a going concern, develop and generate revenues and achieve a profitable level of operations, the Company will need, among other things, additional capital resources. Management's plans to obtain such resources for the Company include (1) raising additional capital through sales of common stock, (2) converting promissory notes into common stock and (3) entering into acquisition agreements with profitable entities with significant operations. In addition, management is continually seeking to streamline its operations and expand the business through a variety of industries, including real estate and financial management. | |
However, management cannot provide any assurances that the Company will be successful in accomplishing any of its plans. | |
The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. |
Note_7_Commitments_and_Conting
Note 7 - Commitments and Contingencies | 12 Months Ended | |
Dec. 31, 2014 | ||
Notes | ||
Note 7 - Commitments and Contingencies | NOTE 7 - COMMITMENTS AND CONTINGENCIES | |
(a) Lease Commitments | ||
The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2016. The minimum obligations under such commitments for the years ending December 31, 2014 through December 31, 2017 are listed on the table below. | ||
For the Year | Amount | |
Ending | ||
2015 | 40,000 | |
2016 | 40,000 | |
2017 | 0 | |
Total Commitment | $80,000 | |
(b) Strategic Investment | ||
On November 10, 2012 the Company and PDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., have signed a contract to supply an independent solar power system grafted with Leo Motors' E-Box power storage device for a housing project in the Democratic Republic of the Congo ("DRC"). The Company had a commitment to raise $1,000,000 to fulfill its part of the contract for strategic investment. This investment was impaired in full as of December 31, 2014 and completion of the project looks doubtful. |
Note_8_Inventories
Note 8 - Inventories | 12 Months Ended | ||
Dec. 31, 2014 | |||
Notes | |||
Note 8 - Inventories | NOTE 8 - INVENTORIES | ||
Inventories at December 31, 2014 and 2013 consist of the following: | |||
31-Dec-14 | 31-Dec-13 | ||
US$ | US$ | ||
Raw material | $0 | $0 | |
Work in process | 279,783 | 0 | |
Finished goods | 0 | 0 | |
$279,783 | $0 |
Note_9_Property_and_Equipment
Note 9 - Property and Equipment | 12 Months Ended | ||
Dec. 31, 2014 | |||
Notes | |||
Note 9 - Property and Equipment | NOTE 9 - PROPERTY AND EQUIPMENT | ||
Property and equipment consisted of the following at December 31, 2014 and 2013: | |||
31-Dec-14 | 31-Dec-13 | ||
Vehicles | $7,581 | $7,581 | |
Tools | 12,906 | 12,906 | |
Office | 79,963 | 79,963 | |
Facility equipment | 157,966 | 110,132 | |
Total property and equipment | 258,416 | 210,582 | |
Accumulated depreciation | (219,796 | (174,586 | |
Property and equipment, net | $38,620 | $35,996 | |
Depreciation expense for the years ended December 31, 2014 and 2013 amounted to $19,470 and $15,157, respectively. |
Note_10_Investments
Note 10 - Investments | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Note 10 - Investments | NOTE 10 - INVESTMENTS |
During 2012 the Company started its investment in a housing project in the Republic of the Congo which will use our E-Box power storage device. To date as of September 30, 2014, $270,000 had been invested with additional amounts to be added as described in note 8. This 10% interest has been recorded using the cost investment of accounting for investments. During the year ended December 31, 2014 the completion of this project has come into question. Due to this and other factors the Company has impaired the investments in full with a charge off of $762,000. |
Note_11_Short_Term_Borrowings
Note 11 - Short Term Borrowings | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Note 11 - Short Term Borrowings | NOTE 11 - SHORT TERM BORROWINGS |
The Company continues to fund itself through borrowing and equity sales until sales return to historical levels. | |
At December 31, 2014 the Company had short term borrowings of $448,801. The notes are short term working capital advances that have been advanced to their Korean Subsidiary from various local parties. These advances are due on demand carry no interest rate and no collateral. | |
Additionally the company has borrowed $801,433 in short term convertible notes at a 4% interest rate. These funds were used to fund expansion of our LGM acquisition earlier this year. The derivative components are detailed in footnote 15 and these loans were completely converted in February 2015 into 14,924,263 shares of our common stock. |
Note_12_Income_Taxes
Note 12 - Income Taxes | 12 Months Ended | |
Dec. 31, 2014 | ||
Notes | ||
Note 12 - Income Taxes | NOTE 12 - INCOME TAXES | |
The Company has experienced losses during most years since its inception. As a result, it has incurred no Federal income tax. The Internal Revenue Code allows net operating losses (NOL’s) to be carried forward and applied against future profits for a period of twenty years; an NOL of $21,357,211 had accumulated at December 31, 2014 on U.S. operations and has been carried forward. The potential tax benefit of the NOL’s has been recognized on the books of the Company, but offset by a valuation allowance. | ||
Under current accounting guidance, recognition of deferred tax assets is permitted unless it is more likely than not that the assets will not be realized. The Company has recorded deferred tax assets using statutory rates, as presented below. The valuation reserve increased by $1,523,385 during the year ended December 31, 2014. | ||
Total | ||
Deferred Tax Assets | $7,261,452 | |
Realization Allowance | -7,261,452 | |
Balance Recognized | - | |
The effective tax rate is as follows: | ||
Statutory Federal Rate | 34% | |
Effect of Valuation Allowance | -34% | |
Effective Rate | 0% |
Note_13_Intangible_Assets
Note 13 - Intangible Assets | 12 Months Ended | ||
Dec. 31, 2014 | |||
Notes | |||
Note 13 - Intangible Assets | NOTE 13 - INTANGIBLE ASSETS | ||
The Company accounts for its long-lived assets in accordance with Accounting Standards Codification (“ASC”) Topic 360-10-05, “Accounting for the Impairment or Disposal of Long-Lived Assets.” ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset’s carrying value and fair value or disposable value. The Company determined that none of its long-term assets at December 31, 2014 or 2013 were impaired. | |||
31-Dec-14 | 31-Dec-13 | ||
Patents | $63,554 | $63,554 | |
Trademarks | 277 | 277 | |
Intangible assets | 63,831 | 63,831 | |
Less: impairments | 0 | 0 | |
Intangible assets, net | $63,831 | $63,831 |
Note_14_Segment_Information
Note 14 - Segment Information | 12 Months Ended |
Dec. 31, 2014 | |
Notes | |
Note 14 - Segment Information | NOTE 14 - SEGMENT INFORMATION |
ASC Topic 280 requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. During the years ended December 31, 2014 and 2013, the Company operated in one reportable business segment: the sale and manufacture of specialized electric vehicle. The Company's reportable segment is a strategic business unit that offers its product. |
Note_15_Derivative_Liability
Note 15 - Derivative Liability | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Notes | |||||
Note 15 - Derivative Liability | NOTE 15 – DERIVATIVE LIABILITY | ||||
The Company accounts for derivative financial instruments in accordance with ASC 815, which requires that all derivative financial instruments be recorded in the balance sheets either as assets or liabilities at fair value. | |||||
The Company’s derivative liability is an embedded derivative associated with one of the Company’s convertible promissory notes. The convertible promissory note was issued on July 31, 2014, (the "Note"), is a hybrid instruments which contain an embedded derivative feature which would individually warrant separate accounting as a derivative instrument under Paragraph 815-10-05-4. The embedded derivative feature includes the conversion feature to the Note. Pursuant to Paragraph 815-10-05-4, the value of the embedded derivative liability have been bifurcated from the debt host contract and recorded as a derivative liability resulting in a reduction of the initial carrying amount (as unamortized discount) of the notes, which are amortized as debt discount to be presented in other (income) expenses in the statements of operations using the effective interest method over the life of the notes. | |||||
The embedded derivative within the note have been valued using the Black Scholes approach, recorded at fair value at the date of issuance; and marked-to-market at each reporting period end date with changes in fair value recorded in the Company’s statements of operations as “change in the fair value of derivative instrument”. | |||||
As of July 31, 2014 and December 31, 2014, the estimated fair value of derivative liability was determined to be $825,529 and $819,922, respectively. On July 31, 2014, the derivative liability was recognized with a debt discount of $825,529. During the six months ended December 31, 2014, amortization of $550,353 was recorded against the discount. The change in the fair value of derivative liabilities for the year ended December 31, 2014 was $5,609 resulting in an aggregate gain on derivative liabilities. | |||||
Summary of Fair Value of Financial Assets and Liabilities Measured on a Recurring Basis | |||||
Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheets: | |||||
Fair Value Measurement Using | |||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |
819,922 | - | - | 819,922 | 819,922 | |
$819,922 | - | - | $819,922 | $819,922 | |
Summary of the Changes in Fair Value of Level 3 Financial Liabilities | |||||
The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the year ended December 31, 2014: | |||||
Derivative Liability | |||||
Fair value, December 31, 2013 | - | ||||
Additions | 825,529 | ||||
Change in fair value | -5,609 | ||||
Transfers in and/or out of Level 3 | - | ||||
Fair value, September 30, 2014 | $819,922 | ||||
Note_2_Policies_Policies
Note 2 - Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Policies | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation |
These financial statements and related notes are expressed in US dollars. The Company’s fiscal year-end is December 31. The consolidated financial statements include the financial statements of the Leo Motors Co. Ltd. Korea and LGM Co. LTD where the Parent Company has significant control. All inter-company transactions and balances have been eliminated upon consolidation. | |
Use of Estimates | Use of Estimates |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, 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. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
For certain of the Company’s financial instruments, including cash and cash equivalents, accounts receivable inventory and prepaid expenses, accounts payable and deferred revenues, the carrying amounts approximate fair value due to their short maturities. | |
Revenue Recognition | Revenue Recognition |
The Company follows the guidance of the Securities and Exchange Commission’s Staff Accounting Bulletin No. 104, “Revenue Recognition in Financial Statements”. In general, the Company records revenue when persuasive evidence of an arrangement exists, services have been rendered or product delivery has occurred, the sales price to the customer is fixed or determinable, and collectability is reasonably assured. The following policies reflect specific criteria for the various revenues streams of the Company. | |
The Company generates revenue from the delivery of goods and records revenues when the sales are completed, already collected or collectability is reasonably assured, there is no future obligation and there is remote chance of future claim or refund to the customers. | |
Revenue is recognized when risk of ownership and title pass to the buyer, generally upon the delivery of professional services. Pricing is fixed and determinable according to the Company’s published brochures and price lists. | |
Accounts Receivables | Accounts Receivables |
Accounts receivables of the Company are reviewed to determine if their carrying value has become impaired. | |
The Company considers the assets to be impaired if the balances are greater than one-year old. Management regularly reviews accounts receivable and will establish an allowance for potentially uncollectible amounts when appropriate. When accounts are written off, they will be charged against the allowance. | |
Receivables are not collateralized and do not bear interest. | |
Cash Equivalents | Cash Equivalents |
For purposes of reporting cash flows, the Company considers all short-term investments with an original maturity of three months or less to be cash equivalent. | |
Fixed Assets | Fixed Assets |
Fixed assets are stated at cost, less accumulated depreciation. Depreciation is provided principally on the straight-line method over the estimated useful lives of the assets, which is generally 3 to 10 years. The cost of repairs and maintenance is charged to expense as incurred. Expenditures for property betterments and renewals are capitalized. Upon sale or other disposition of a depreciable asset, cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in other income (expense). | |
The Company will periodically evaluate whether events and circumstances have occurred that may warrant revision of the estimated useful lives of fixed assets or whether the remaining balance of fixed assets should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the fixed assets in measuring their recoverability. | |
Intangible and Long Lived Assets | Intangible and Long Lived Assets |
The Company follows ASC 360-10, “Property, Plant, and Equipment,” which established a “primary asset” approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through December 31, 2014, the Company had not experienced impairment losses on its long-lived assets. | |
Income Taxes | Income Taxes |
The Company uses the asset and liability method of accounting for income taxes in accordance with ASC 740-10, “Accounting for Income Taxes.” Under this method, income tax expense is recognized for the amount of: (i) taxes payable or refundable for the current year; and, (ii) deferred tax consequences of temporary differences resulting from matters that have been recognized in an entity’s financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the results of operations in the period that includes the enactment date. A valuation allowance is provided to reduce the deferred tax assets reported if, based on the weight of available positive and negative evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized. | |
ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax benefit from an uncertain tax position taken or expected to be taken may be recognized only if it is “more likely than not” that the position is sustainable upon examination, based on its technical merits. The tax benefit of a qualifying position under ASC 740-10 would equal the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority having full knowledge of all the relevant information. A liability (including interest and penalties, if applicable) is established to the extent a current benefit has been recognized on a tax return for matters that are considered contingent upon the outcome of an uncertain tax position. Related interest and penalties, if any, are included as components of income tax expense and income taxes payable. | |
Loss Per Share | Loss per Share |
Basic earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of both common and preferred stock outstanding for the period. | |
Stock-based Compensation | Stock-Based Compensation |
SFAS No. 123, “Accounting for Stock-Based Compensation,” establishes and encourages the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with SFAS No. 123 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model. | |
Foreign Currency Translation and Comprehensive Income | Foreign Currency Translation And Comprehensive Income |
The reporting currency of the Company is the US$. The functional currency of the parent company is the US$ and the functional currency of the Company’s operating subsidiary is Korean Won (“KRW”). The subsidiary’s results of operations and cash flows are translated at average exchange rates during the year, assets and liabilities are translated at the unified exchange rate at the end of the year, and equity is translated at historical exchange rates. Translation adjustments resulting from the process of translating the functional currency financial statements into US$ are included in determining comprehensive income. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in the results of operations as incurred. The Company does not enter any material transaction in foreign currencies and accordingly, transaction gains or losses have not had, and are not expected to have, a material effect on the results of operations of the Company. | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements |
The Company continually assesses any new accounting pronouncements to determine their applicability to the Company. Where it is determined that a new accounting pronouncement affects the Company’s financial reporting, the Company undertakes a study to determine the consequence of the change to its financial statements and assures that there are proper controls in place to ascertain that the Company’s financials properly reflect the change. The Company currently does not have any recent accounting pronouncements that they are studying and feel may be applicable. |
Note_3_Earnings_Per_Share_Sche
Note 3 - Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Tables/Schedules | |||
Schedule of Earnings Per Share, Basic and Diluted | |||
For the years ended | |||
12/31/14 | 12/31/13 | ||
Net Income (Loss) | $(4,480,544 | $(1,244,603 | |
Weighted-average common stock Outstanding - basic | 107,700,959 | 60,220,851 | |
Equivalents | |||
Stock options | - | 0 | |
Warrants | - | 0 | |
Convertible Notes | 14,924,263 | 1,439,655 | |
Weighted-average common shares | |||
outstanding- Diluted | 122,625,222 | 61,660,506 |
Note_7_Commitments_and_Conting1
Note 7 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Tables/Schedules | ||
Schedule of Future Minimum Rental Payments for Operating Leases | ||
For the Year | Amount | |
Ending | ||
2015 | 40,000 | |
2016 | 40,000 | |
2017 | 0 | |
Total Commitment | $80,000 | |
Note_8_Inventories_Schedule_of
Note 8 - Inventories: Schedule of Inventories (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Tables/Schedules | |||
Schedule of Inventories | Inventories at December 31, 2014 and 2013 consist of the following: | ||
31-Dec-14 | 31-Dec-13 | ||
US$ | US$ | ||
Raw material | $0 | $0 | |
Work in process | 279,783 | 0 | |
Finished goods | 0 | 0 | |
$279,783 | $0 |
Note_9_Property_and_Equipment_
Note 9 - Property and Equipment: Property, Plant and Equipment (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Tables/Schedules | |||
Property, Plant and Equipment | |||
31-Dec-14 | 31-Dec-13 | ||
Vehicles | $7,581 | $7,581 | |
Tools | 12,906 | 12,906 | |
Office | 79,963 | 79,963 | |
Facility equipment | 157,966 | 110,132 | |
Total property and equipment | 258,416 | 210,582 | |
Accumulated depreciation | (219,796 | (174,586 | |
Property and equipment, net | $38,620 | $35,996 |
Note_12_Income_Taxes_Schedule_
Note 12 - Income Taxes: Schedule of Deferred Tax Assets (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Tables/Schedules | ||
Schedule of Deferred Tax Assets | ||
Total | ||
Deferred Tax Assets | $7,261,452 | |
Realization Allowance | -7,261,452 | |
Balance Recognized | - |
Note_12_Income_Taxes_Schedule_1
Note 12 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Tables/Schedules | ||
Schedule of Effective Income Tax Rate Reconciliation | ||
Statutory Federal Rate | 34% | |
Effect of Valuation Allowance | -34% | |
Effective Rate | 0% |
Note_13_Intangible_Assets_Sche
Note 13 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Tables) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Tables/Schedules | |||
Schedule of Finite-Lived Intangible Assets | |||
31-Dec-14 | 31-Dec-13 | ||
Patents | $63,554 | $63,554 | |
Trademarks | 277 | 277 | |
Intangible assets | 63,831 | 63,831 | |
Less: impairments | 0 | 0 | |
Intangible assets, net | $63,831 | $63,831 |
Note_15_Derivative_Liability_S
Note 15 - Derivative Liability: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Tables/Schedules | |||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | |||||
Fair Value Measurement Using | |||||
Carrying Value | Level 1 | Level 2 | Level 3 | Total | |
819,922 | - | - | 819,922 | 819,922 | |
$819,922 | - | - | $819,922 | $819,922 |
Note_15_Derivative_Liability_A
Note 15 - Derivative Liability: Assets and Liabilities, Changes in Fair Value, Recurring Basis (Tables) | 12 Months Ended | |
Dec. 31, 2014 | ||
Tables/Schedules | ||
Assets and Liabilities, Changes in Fair Value, Recurring Basis | ||
Derivative Liability | ||
Fair value, December 31, 2013 | - | |
Additions | 825,529 | |
Change in fair value | -5,609 | |
Transfers in and/or out of Level 3 | - | |
Fair value, September 30, 2014 | $819,922 |
Note_1_Company_Background_Deta
Note 1 - Company Background (Details) | 12 Months Ended | 3 Months Ended | |
Dec. 31, 2014 | Mar. 31, 2010 | Dec. 31, 2011 | |
Common Stock | |||
Conversion of Stock, Shares Issued | 47,352,450 | ||
PDI | Housing Project In The Republic Of The Congo | |||
Long Term Investment Percentage Of Investment Owned | 10.00% | ||
Leo BT Corp | |||
Noncash or Part Noncash Acquisition, Interest Acquired | 50.00% | ||
Acquisition in Exchange for Common Stock, Shares Issued | 7,000,000 | ||
Equity Method Investment, Ownership Percentage | 30.00% | ||
LGM Co. Ltd | |||
Conversion of Stock, Shares Converted | 813,747 |
Note_2_Policies_Fixed_Assets_D
Note 2 - Policies: Fixed Assets (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum | |
Property, Plant and Equipment, Useful Life | 3 years |
Maximum | |
Property, Plant and Equipment, Useful Life | 10 years |
Note_3_Earnings_Per_Share_Sche1
Note 3 - Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||
Net Income (Loss) | ($4,480,544) | ($1,244,603) |
Weighted-average common stock Outstanding - basic | 107,700,959 | 60,220,851 |
Equivalents | ||
Stock options | 0 | 0 |
Warrants | 0 | 0 |
Convertible Notes | 14,924,263 | 1,439,655 |
Weighted-average common shares outstanding - Diluted | 122,625,222 | 61,660,506 |
Note_4_Due_To_Related_Party_De
Note 4 - Due To Related Party (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Due to related parties | $150,637 | $150,637 |
Officer | ||
Due to related parties | $150,637 | $150,637 |
Note_5_Payments_Received_in_Ad1
Note 5 - Payments Received in Advance (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Details | ||
Prepayment to suppliers | $306,969 | $197,973 |
Note_7_Commitments_and_Conting2
Note 7 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $) | Dec. 31, 2014 |
Details | |
2015 | $40,000 |
2016 | 40,000 |
2017 | 0 |
Total Commitment | $80,000 |
Note_7_Commitments_and_Conting3
Note 7 - Commitments and Contingencies (Details) (Housing Project In The Republic Of The Congo, PDI, USD $) | Nov. 10, 2012 |
Housing Project In The Republic Of The Congo | PDI | |
Contractual Obligation | $1,000,000 |
Note_8_Inventories_Schedule_of1
Note 8 - Inventories: Schedule of Inventories (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Details | ||
Raw material | $0 | $0 |
Work in process | 279,783 | 0 |
Finished goods | 0 | 0 |
Inventories | $279,783 | $0 |
Note_9_Property_and_Equipment_1
Note 9 - Property and Equipment: Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Total property and equipment | $258,416 | $210,582 |
Accumulated depreciation | -219,796 | -174,586 |
Property and equipment, net | 38,620 | 35,996 |
Tools | ||
Total property and equipment | 12,906 | 12,906 |
Office Equipment | ||
Total property and equipment | 79,963 | 79,963 |
Facility Equipment | ||
Total property and equipment | 157,966 | 110,132 |
Vehicles | ||
Total property and equipment | $7,581 | $7,581 |
Note_9_Property_and_Equipment_2
Note 9 - Property and Equipment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||
Depreciation | $19,470 | $15,157 |
Note_10_Investments_Details
Note 10 - Investments (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Investments | $0 | $762,000 |
Ownership interest in Housing project | 10.00% | |
Impairment of investment | 762,000 | 0 |
Housing Project In The Republic Of The Congo | PDI | ||
Investments | $270,000 |
Note_11_Short_Term_Borrowings_
Note 11 - Short Term Borrowings (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Short term borrowings | $448,801 | $167,373 |
Conversion of debt for common stock | 98,496 | 240,000 |
Note 1 | ||
Short term borrowings | 448,801 | |
Note 2 | ||
Conversion of debt for common stock | $801,433 | |
Note 2 | Common Stock | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | |
Debt Conversion, Converted Instrument, Shares Issued | 14,924,263 |
Note_12_Income_Taxes_Details
Note 12 - Income Taxes (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Details | |
Operating Loss Carryforwards | $21,357,211 |
Valuation reserve increase | $1,523,385 |
Note_12_Income_Taxes_Schedule_2
Note 12 - Income Taxes: Schedule of Deferred Tax Assets (Details) (USD $) | Dec. 31, 2014 |
Details | |
Deferred Tax Assets | $7,261,452 |
Realization Allowance | -7,261,452 |
Balance Recognized | $0 |
Note_12_Income_Taxes_Schedule_3
Note 12 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Details | |
Statutory Federal Rate | 34.00% |
Effect of Valuation Allowance | -34.00% |
Effective Rate | 0.00% |
Note_13_Intangible_Assets_Sche1
Note 13 - Intangible Assets: Schedule of Finite-Lived Intangible Assets (Details) (USD $) | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Details | ||||
Patents | $63,554 | $63,554 | ||
Trademarks | 277 | 277 | ||
Intangible assets | 63,831 | 63,831 | ||
Less: impairments | 0 | 0 | ||
Intangible assets, net | $63,831 | $63,831 |
Note_15_Derivative_Liability_D
Note 15 - Derivative Liability (Details) (USD $) | 12 Months Ended | 6 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Jul. 31, 2014 | |
Notes Payable, discount | $275,176 | $0 | $275,176 | |
Amortization debt discount | 340,568 | 53,748 | ||
Derivative income | 5,609 | 0 | ||
Derivative Financial Instruments, Liabilities | ||||
Liabilities, Fair Value Disclosure, Recurring | 819,922 | 819,922 | 825,529 | |
Notes Payable, discount | 825,529 | |||
Amortization debt discount | 550,353 | |||
Derivative income | $5,609 |
Note_15_Derivative_Liability_S1
Note 15 - Derivative Liability: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) (Derivative Financial Instruments, Liabilities, USD $) | Dec. 31, 2014 | Jul. 31, 2014 |
Liabilities, Fair Value Disclosure, Recurring | $819,922 | $825,529 |
Fair Value, Inputs, Level 1 | ||
Liabilities, Fair Value Disclosure, Recurring | 0 | |
Fair Value, Inputs, Level 2 | ||
Liabilities, Fair Value Disclosure, Recurring | 0 | |
Fair Value, Inputs, Level 3 | ||
Liabilities, Fair Value Disclosure, Recurring | $819,922 |
Note_15_Derivative_Liability_A1
Note 15 - Derivative Liability: Assets and Liabilities, Changes in Fair Value, Recurring Basis (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Details | |
Derivative Liability, Fair value, Beginning Balance | $0 |
Additions | 825,529 |
Fair Value, Liabilities Measured on Recurring Basis, Change in Unrealized Gain (Loss) | -5,609 |
Transfers in and/or out of Level 3 | 0 |
Derivative Liability, Fair value, Ending Balance | $819,922 |