Leo Motors (LEOM) 10-K 30 Mar 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 28, 2016	Jun. 30, 2015
Document and Entity Information
Entity Registrant Name	Leo Motors, Inc.
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Amendment Flag	false
Entity Central Index Key	1,356,564
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		163,198,512
Entity Public Float			$ 65,088,623
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	2,015
Document Fiscal Period Focus	FY
Trading Symbol	leom

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current Assets
Cash and cash equivalents	$ 243,809	$ 217,178
Accounts receivable	1,565,114	542,210
Inventories	496,971	279,783
Prepayment to suppliers	279,229	306,969
Other current assets	32,107	49,705
Total Current Assets	2,617,230	1,395,845
Fixed assets, net	163,001	38,620
Deposit	346,659	51,601
Intangible assets	63,831	63,831
Goodwill	3,057,003	2,444,558
Total Assets	6,247,724	3,994,455
Current Liabilities:
Accounts payable and accrued expenses	4,082,198	2,152,951
Short term borrowings	7,661	448,801
Advance from customers	795,431	40,951
Due to related parties	140,396	150,637
Taxes payable	99,584	159,478
Notes Payable current portion	49,397	526,257
Derivative liability	0	819,922
Total Current Liabilities	5,174,667	4,298,997
Accrued retirement benefits	92,948	2,150
Notes payable long term	273,646	145,316
Other long term liabilities	129,748	0
Total Liabilities	$ 5,671,009	$ 4,446,463
Commitments (Note 8)
Leo Motors, Inc.("LEOM") Equity(Deficit):
Common stock ($0.001 par value; 300,000,000 shares authorized); 158,948,604 and 138,624,206 shares issued and outstanding at December 31, 2015 and December 31, 2014	$ 158,949	$ 138,624
Additional paid-in capital	20,367,272	17,723,248
Accumulated other comprehensive income	1,251,120	511,229
Accumulated loss	(25,404,609)	(21,357,211)
Total Equity(Deficit) Leo Motors, Inc.	(3,627,268)	(2,984,110)
Non-controlling interest	4,203,983	2,532,102
Total Equity(Deficit)	576,715	(452,008)
Total Liabilities and Equity(Deficit)	$ 6,247,724	$ 3,994,455

CONSOLIDATED BALANCE SHEETS (PA

CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position
Common Stock, par or stated value	$ 0.001	$ 0.001
Common Stock, shares authorized	220,000,000	220,000,000
Common Stock, shares issued	158,948,604	138,624,206
Common Stock, shares outstanding	158,948,604	138,624,206

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Statement
Revenues	$ 4,299,187	$ 693,096
Cost of Revenues	3,275,587	379,066
Gross Profit	1,023,600	314,030
Operating Expenses	5,421,508	3,468,599
Income(loss) from Continuing Operations	(4,397,908)	(3,154,569)
Other Income (Expenses)
Interest expense	(319,054)	(1,325,975)
Non-Operating (expense) income	225,990	0
Total Other Income (Expenses)	(93,064)	(1,325,975)
Income(loss) from Continuing Operations Before Income Taxes	(4,490,972)	(4,480,544)
Income Tax Expense	0	0
Net Income(Loss)	(4,490,972)	(4,480,544)
Income(loss) attributable to non-controlling interest	(443,574)	(4,817)
Net Income(Loss) Attributable To Leo Motors, Inc.	(4,047,398)	(4,485,361)
Other Comprehensive Income:
Net Income(Loss)	(4,490,972)	(4,480,544)
Unrealized foreign currency translation gain	739,891	(42,899)
Comprehensive Income(loss) Attributable to Leo Motors, Inc.	$ (3,751,081)	$ (4,523,443)
Net Loss per Common Share:
Basic	$ (0.03)	$ (0.05)
Diluted	$ (0.03)	$ (0.05)
Weighted Average Common Shares Outstanding:
Basic	155,866,313	97,393,209
Diluted	155,866,313	98,056,098

CONSOLIDATED STATEMENTS OF STOC

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, 2013	$ 67,834	$ 13,290,081	$ (16,871,850)	$ 468,330	$ 2,527,285	$ (518,320)
Equity Balance, beginning 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
Stock-based compensation, Value	$ 20,325	1,795,065				1,815,390
Stock-based compensation, Shares	20,324,398
Retirement of derivatives		819,922				819,922
Warrants issued for investment		29,037				29,037
Minority interest contributions					2,115,455	2,115,455
Net loss			(4,047,398)		(443,574)	(4,490,972)
Foreign currency translation adjustment				739,891		739,891
Equity Balance, end of period, Value at Dec. 31, 2015	$ 158,949	$ 20,367,272	$ (25,404,609)	$ 1,251,120	$ 4,203,983	$ 576,715
Equity Balance, end of period, Shares at Dec. 31, 2015	158,948,604

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from Operating Activities:
Net loss	$ (4,490,972)	$ (4,480,544)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	207,837	19,470
Loss on conversion of debt	0	24,376
Amortization debt discount	275,176	340,568
Foreign currency translation	739,891	42,899
Stock-based compensation	903,704	284,643
Gain on derivative liabilites	0	(5,607)
Impairment of investment	0	762,000
Changes in assets and liabilities:
Accounts Receivable	(1,022,904)	(542,210)
Inventories	(217,188)	(279,783)
Prepayment to suppliers	27,740	(108,996)
Other assets	17,598	(19,522)
Accounts payable, other payables and accrued expenses	1,929,247	1,033,656
Accrued retirement benefits	90,798	(59,886)
Advances from customers	883,658	(394,488)
Taxes payable	(59,894)	12,628
Net cash used in operating activities:	(715,309)	(3,370,796)
Cash flows from investing activities:
Investment in equipment	(332,218)	(16,846)
Payments on deposits	(295,058)	0
Net cash provided(used) in investing activities:	(627,276)	(16,846)
Cash flows from financing activities:
Proceeds from notes payable	427,208	801,433
Payments on related party debt net	(10,241)	0
Payments on notes payable	(441,140)	0
Proceeds from issuance of stock & warrants	1,393,389	2,801,613
Net cash provided(used) by financing activities:	1,369,216	3,603,046
Net Increase in cash and cash equivalents:	26,631	215,404
Cash and cash equivalents - beginning of year	217,178	1,774
Cash and cash equivalents - end of year	243,809	217,178
Supplemental disclosure of cash flow activities:
Interest	43,878	0
Income taxes	0	4,817
Supplemental disclosures of non cash activities:
Conversion of derivative liability	819,922	569,584
Goodwill on acquisition	612,445	0
Conversion of debt for common stock	1,901,433	98,496
Common stock issued for services	$ 903,704	$ 284,643

Note 1 - Company Background

Note 1 - Company Background	12 Months Ended
	Dec. 31, 2015
Notes
Note 1 - Company Background	NOTE 1 - COMPANY BACKGROUND Leo Motors, Inc. (the "Company," or "we") is currently in development, assembly and sales of the energy storage devices and electric vehicle components. The Company was originally incorporated in California as N. Org., Inc. on December 12, 1983. The Company then underwent several name changes from Natural Organics Corporation to Classic Auto Accessories of North America and then to FCR Automotive Group, Inc. On September 20, 2004, the Company reincorporatedinDelaware by merging into FCR Group, Inc.,aDelaware Automotive corporation,whichwasorganizedonSeptember8, 2004. On July26,2005,theCompany acquired Shinil Precision Co., Ltd., a Korean Company,asitsoperatingbusinessand on July 18, 2005, changed its name to ShinilPrecision Machinery, Inc. to reflect its anticipated new business. Upon failure of certain termsandconditionsofthe acquisition agreement, the Companyreturned the shares of Shinil and recovered and cancelled the Company's sharesissuedintheacquisition. In 2012, the Company changed its domicile to Nevada. The Company had been dormant since 1989, and consummated 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., a South Korean corporation ("B&T"), from two shareholders of B&T in exchange for 7,000,000 shares of the Company's common stock. Our ownership in B&T was reduced to 30% in 2011. Additionally, this investment was written down as 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 signed an agreement withPDI C&D/RDC SPRL Inc. ("PDI"), an affiliate of PDI Global LLC, a major architectural design company in the U.S., to supply an independent solar power system grafted with the Company's 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, 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. Upon closing of the Share Swap Agreement, LGM became a wholly-owned subsidiary of the Company. On March 31, 2015, the Company acquired 50% interest in each of Leo Motors Factory, Inc. ("Leo Factory 1") and Leo Motors Factory 2, Inc. ("Leo Factory 2")

Note 2 - Policies

Note 2 - Policies	12 Months Ended
	Dec. 31, 2015
Notes
Note 2 - Policies	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," 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, 2015
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, 2015 and 2014: For the periods ended 12/31/2015 12/31/2014 Net Income (Loss) $(4,490,972) $(4,480,544) Weighted-average common stock Outstanding - basic 155,866,313 97,393,209 Equivalents Stock options - 0 Warrants - 0 Convertible Notes 0 662,889 Weighted-average common shares outstanding- Diluted 155,866,313 98,056,098

Note 4 - Due To Related Party

Note 4 - Due To Related Party	12 Months Ended
	Dec. 31, 2015
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 $140,396 at December 31, 2015 and $150,637 at December 31, 2014

Note 5 - Payments Received in A

Note 5 - Payments Received in Advance	12 Months Ended
	Dec. 31, 2015
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, 2015 and December 31, 2014, the balance of payments received in advance was $279,229 and $ 306,969, respectively.

Note 6 - Going Concern

Note 6 - Going Concern	12 Months Ended
	Dec. 31, 2015
Notes
Note 6 - Going Concern	NOTE 6 - GOING CONCERN As reported in the consolidated financial statements, the Company has accumulated deficits of $25,404,609 as of December 31, 2015 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 Contin

Note 7 - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
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, 2015 through December 31, 2018 are listed on the table below. For the Year Amount Ending 2016 $220,827 2017 101,249 2018 and beyond 0 Total Commitment $322,076 (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., signed a contract to supply an independent solar power system grafted with the Company's 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 as completion of the project looks doubtful.

Note 8 - Inventories

Note 8 - Inventories	12 Months Ended
	Dec. 31, 2015
Notes
Note 8 - Inventories	NOTE 8 - INVENTORIES Inventories consist of the following: 31-Dec-15 31-Dec-14 US$ US$ Raw material $0 $0 Work in process 496,971 279,783 Finished goods 0 0 $496,971 $279,783

Note 9 - Property and Equipment

Note 9 - Property and Equipment	12 Months Ended
	Dec. 31, 2015
Notes
Note 9 - Property and Equipment	NOTE 9 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following: 31-Dec-15 31-Dec-14 Vehicles $146,268 $7,581 Tools 95,771 12,906 Office 109,447 79,963 Facility equipment 210,502 157,966 Total property and equipment 561,988 258,416 Accumulated depreciation (398,987) (219,796) Property and equipment, net $163,001 $38,620 Depreciation expense for the years ended December 31, 2015 and 2014 amounted to $207,837 and $19,470, respectively.

Note 10 - Investments

Note 10 - Investments	12 Months Ended
	Dec. 31, 2015
Notes
Note 10 - Investments	NOTE 10 - INVESTMENTS During 2012, the Company invested in a housing project in the Republic of the Congo which would use our E-Box power storage device. $270,000 had been invested. Their 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 and Notes Payable	12 Months Ended
	Dec. 31, 2015
Notes
Note 11 - Short Term Borrowings and Notes Payable	NOTE 11 - SHORT TERM BORROWINGS AND NOTES PAYABLE 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, interest free and unsecured. Additionally the company borrowed $819,922 in short term convertible notes at a 4% interest rate. These funds were used to fund expansion of our LGM acquisition in 2014. 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. As of December 31, 2015 the major components of our notes and borrowings consisted of the following: 12/31/15 Hana Bank six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.65% interest only payable monthly and securred by the company. $45,505 Hana Bank six month note extended with 12 month term renewable periods with a variable interest rate currently at 6.24% interest only payable monthly. 75,775 Hana Bank six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.64% interest only payable monthly and securred by the company. 46,800 KookMin Bank six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.28% interest only payable monthly and securred by the company 85,245 Industrial Bank of Korea Bank four year note extended with 12 month extension fully amortizing with a variable interest rate currently at 3.83% payable monthly. 35,718 NH Bank six month note extended with 12 month term renewable periods with a variable interest rate currently at 7.25% interest only payable monthly. 34,000 Total Liabilities 323,043 Less current portion 49,397 Long tem debt $273,646

Note 12 - Income Taxes

Note 12 - Income Taxes	12 Months Ended
	Dec. 31, 2015
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 $25,404,609 had accumulated at December 31, 2015 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, and is 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 $1,376,115 during the year ended December 31, 2015. Total Deferred Tax Assets 8,637,567 Realization Allowance (8,637,567) 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, 2015
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 increased goodwill as a result of its first quarter acquisitions by $612,445 and also determined that none of its long-term assets at December 31, 2015 and December 31, 2014 were impaired. 31-Dec-15 31-Dec-14 Patents $63,554 $63,554 Trademarks 277 277 Goodwill 3,057,003 2,444,558 Intangible assets 3,120,834 2,508,389 Less impairment 0 0 Intangible assets, net $3,120,834 $2,508,389

Note 14 - Segment Information

Note 14 - Segment Information	12 Months Ended
	Dec. 31, 2015
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, 2015 and 2014, 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, 2015
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 December 31, 2015 and December 31, 2014, the estimated fair value of derivative liability was determined to be $0 and $819,922, respectively. On July 31, 2014, the derivative liability was recognized with a debt discount of $825,529. During the year ended December 31, 2015, the loan was converted to common stock and the remaining unamortized debt discount of $275,176 was recorded against as a charge to interest expense. 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 sheet: Fair Value Measurement Using Carrying Value Level 1 Level 2 Level 3 Total -0- - - -0- -0- $-0- $- $- $-0- $-0- 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 year ended December 31, 2015. Derivative Liability Fair value, December 31, 2014 $819,922 Additions -0- Change in fair value -0- Transfers in and/or out of Level 3 (819,922) Fair value, December 31, 2015 $-0-

Note 16 - Acquisitions

Note 16 - Acquisitions	12 Months Ended
	Dec. 31, 2015
Notes
Note 16 - Acquisitions	NOTE 16 - ACQUISITIONS On March 29, 2015, the Company acquired a 50% interest in each of Leo Motors Factory 1 and 2 which are auto repair shops that specialize in repairing hand-made luxury cars such as Ferrari, Lamborghini, Bentley, Porsche, and Rolls Royce. The Company also acquired a 50% interest in Leo Trade specializing in trading luxury cars. The consolidation of these acquisitions is presented below. Leo Motors consolidation LEO Motors LEO Motors LGM LEO Motors LEO Motors LEO Trade ELIM Consolidated March 31, 2015 US Korea Factory 1 Factory 2 (f/k/a/ Erum) ENTRIES Statements All numbers shown in US Dollars DR(CR) 3/31/2015 ASSETS Cash and cash equivalents $374 67853 211,957 91,187 2914 92173 0 466,458 Accounts receivable 0 0 476,777 8,754 48,425 418,422 0 952,378 Inventories 0 0 295,159 0 0 0 0 295,159 Prepayment to suppliers 0 137,236 160,484 0 0 0 0 297,720 Other current assets 0 7,297 57,403 1,595 125,212 36,685 0 228,192 Total Current Assets 374 212,386 1,201,780 101,536 176,551 547,280 2,239,907 Fixed assets, net 6,744 10,530 16,846 63,683 88,181 0 0 185,984 Deposit 0 46,234 22,637 4,804 145,196 9,025 0 227,896 Intangible assets 0 63,831 0 0 0 0 0 63,831 Goodwill 0 0 0 0 0 0 3,057,003 3,057,003 Investment in subsidiaries 8,089,368 0 0 0 0 0 -8,089,368 0 Total Non-Current Assets 8,096,112 120,595 39,483 68,487 233,377 9,025 3,534,714 Total Assets $8,096,486 332,981 1,241,263 170,023 409,928 556,305 -5,032,365 5,774,621 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $1,139,889 1,060,342 291,900 97,840 307,112 416,183 0 3,313,266 Short term borrowings 0 256,392 183,245 32,052 0 0 0 471,689 Advance from customers 0 30,381 9,141 0 4,513 0 0 44,035 Due to related parties 0 116,617 0 0 0 0 0 116,617 Taxes payable 0 137,780 10,673 13,559 78,783 226 0 241,021 Notes Payable current portion 0 0 0 0 0 353,747 0 353,747 Total Current Liabilities 1,139,889 1,601,512 494,959 143,451 390,408 770,156 4,540,375 Long Term Notes 0 36,698 117,075 0 173,928 0 0 327,701 Accrued severance benefits 0 2,075 0 0 0 0 0 2,075 Total Liabilities 1,139,889 1,640,285 612,034 143,451 564,336 770,156 4,870,151 Stockholders' Equity : Common stock 154,144 2,831,276 284,870 90,253 135,379 180,505 (3,522,283) 154,144 Additional paid-in capital 21,253,084 1,831,184 1,285,902 0 0 0 (4,973,230) 19,396,940 Accumulated other comprehensive income 277,678 225,403 4,893 0 0 0 0 507,974 Accumulated loss (14,728,309) (6,195,167) (946,436) (63,681) (289,787) (394,356) 733,773 (21,883,963) Total Stockholders' Deficit attributable to LEO MOTORS, INC. 6,956,597 (1,307,304 629,229 26,572 (154,408) (213,851) (1,824,905) Non-controlling interest 0 0 0 0 0 0 2,729,375 2,729,375 Total Stockholders' Deficit 6,956,597 (1,307,304 629,229 26,572 (154,408) (213,851) 904,470 Total Liabilities and Stockholders' Deficit $8,096,486 332,981 1,241,263 170,023 409,928 556,305 (5,032,365) 5,774,621

Note 2 - Policies (Policies)

Note 2 - Policies (Policies)	12 Months Ended
	Dec. 31, 2015
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,"
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_ Sc

Note 3 - Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Earnings Per Share, Basic and Diluted	The following is a reconciliation of the computation for basic and diluted EPS for the years ended December 31, 2015 and 2014: For the periods ended 12/31/2015 12/31/2014 Net Income (Loss) $(4,490,972) $(4,480,544) Weighted-average common stock Outstanding - basic 155,866,313 97,393,209 Equivalents Stock options - 0 Warrants - 0 Convertible Notes 0 662,889 Weighted-average common shares outstanding- Diluted 155,866,313 98,056,098

Note 7 - Commitments and Cont25

Note 7 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Future Minimum Rental Payments for Operating Leases	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, 2015 through December 31, 2018 are listed on the table below. For the Year Amount Ending 2016 $220,827 2017 101,249 2018 and beyond 0 Total Commitment $322,076

Note 8 - Inventories_ Schedule

Note 8 - Inventories: Schedule of Inventories (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Inventories	Inventories consist of the following: 31-Dec-15 31-Dec-14 US$ US$ Raw material $0 $0 Work in process 496,971 279,783 Finished goods 0 0 $496,971 $279,783

Note 9 - Property and Equipme27

Note 9 - Property and Equipment: Property, Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Property, Plant and Equipment	Property and equipment consisted of the following: 31-Dec-15 31-Dec-14 Vehicles $146,268 $7,581 Tools 95,771 12,906 Office 109,447 79,963 Facility equipment 210,502 157,966 Total property and equipment 561,988 258,416 Accumulated depreciation (398,987) (219,796) Property and equipment, net $163,001 $38,620

Note 11 - Short Term Borrowin28

Note 11 - Short Term Borrowings and Notes Payable: Schedule of Short-term Debt (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Short-term Debt	12/31/15 Hana Bank six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.65% interest only payable monthly and securred by the company. $45,505 Hana Bank six month note extended with 12 month term renewable periods with a variable interest rate currently at 6.24% interest only payable monthly. 75,775 Hana Bank six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.64% interest only payable monthly and securred by the company. 46,800 KookMin Bank six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.28% interest only payable monthly and securred by the company 85,245 Industrial Bank of Korea Bank four year note extended with 12 month extension fully amortizing with a variable interest rate currently at 3.83% payable monthly. 35,718 NH Bank six month note extended with 12 month term renewable periods with a variable interest rate currently at 7.25% interest only payable monthly. 34,000 Total Liabilities 323,043 Less current portion 49,397 Long tem debt $273,646

Note 12 - Income Taxes_ Schedul

Note 12 - Income Taxes: Schedule of Deferred Tax Assets (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Deferred Tax Assets	Total Deferred Tax Assets 8,637,567 Realization Allowance (8,637,567) Balance Recognized $-

Note 12 - Income Taxes_ Sched30

Note 12 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation	The effective tax rate is as follows: Statutory Federal Rate 34% Effect of Valuation Allowance (34%) Effective Rate 0%

Note 15 - Derivative Liability_

Note 15 - Derivative Liability: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	Financial assets and liabilities measured at fair value on a recurring basis are summarized below and disclosed on the balance sheet: Fair Value Measurement Using Carrying Value Level 1 Level 2 Level 3 Total -0- - - -0- -0- $-0- $- $- $-0- $-0-

Note 15 - Derivative Liabilit32

Note 15 - Derivative Liability: Assets and Liabilities, Changes in Fair Value, Recurring Basis (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Assets and Liabilities, Changes in Fair Value, Recurring Basis	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 year ended December 31, 2015. Derivative Liability Fair value, December 31, 2014 $819,922 Additions -0- Change in fair value -0- Transfers in and/or out of Level 3 (819,922) Fair value, December 31, 2015 $-0-

Note 16 - Acquisitions_ Schedul

Note 16 - Acquisitions: Schedule of Consolidated Assets, Liabilities, and Equity of Acquired Entities (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Consolidated Assets, Liabilities, and Equity of Acquired Entities	The consolidation of these acquisitions is presented below. Leo Motors consolidation LEO Motors LEO Motors LGM LEO Motors LEO Motors LEO Trade ELIM Consolidated March 31, 2015 US Korea Factory 1 Factory 2 (f/k/a/ Erum) ENTRIES Statements All numbers shown in US Dollars DR(CR) 3/31/2015 ASSETS Cash and cash equivalents $374 67853 211,957 91,187 2914 92173 0 466,458 Accounts receivable 0 0 476,777 8,754 48,425 418,422 0 952,378 Inventories 0 0 295,159 0 0 0 0 295,159 Prepayment to suppliers 0 137,236 160,484 0 0 0 0 297,720 Other current assets 0 7,297 57,403 1,595 125,212 36,685 0 228,192 Total Current Assets 374 212,386 1,201,780 101,536 176,551 547,280 2,239,907 Fixed assets, net 6,744 10,530 16,846 63,683 88,181 0 0 185,984 Deposit 0 46,234 22,637 4,804 145,196 9,025 0 227,896 Intangible assets 0 63,831 0 0 0 0 0 63,831 Goodwill 0 0 0 0 0 0 3,057,003 3,057,003 Investment in subsidiaries 8,089,368 0 0 0 0 0 -8,089,368 0 Total Non-Current Assets 8,096,112 120,595 39,483 68,487 233,377 9,025 3,534,714 Total Assets $8,096,486 332,981 1,241,263 170,023 409,928 556,305 -5,032,365 5,774,621 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable and accrued expenses $1,139,889 1,060,342 291,900 97,840 307,112 416,183 0 3,313,266 Short term borrowings 0 256,392 183,245 32,052 0 0 0 471,689 Advance from customers 0 30,381 9,141 0 4,513 0 0 44,035 Due to related parties 0 116,617 0 0 0 0 0 116,617 Taxes payable 0 137,780 10,673 13,559 78,783 226 0 241,021 Notes Payable current portion 0 0 0 0 0 353,747 0 353,747 Total Current Liabilities 1,139,889 1,601,512 494,959 143,451 390,408 770,156 4,540,375 Long Term Notes 0 36,698 117,075 0 173,928 0 0 327,701 Accrued severance benefits 0 2,075 0 0 0 0 0 2,075 Total Liabilities 1,139,889 1,640,285 612,034 143,451 564,336 770,156 4,870,151 Stockholders' Equity : Common stock 154,144 2,831,276 284,870 90,253 135,379 180,505 (3,522,283) 154,144 Additional paid-in capital 21,253,084 1,831,184 1,285,902 0 0 0 (4,973,230) 19,396,940 Accumulated other comprehensive income 277,678 225,403 4,893 0 0 0 0 507,974 Accumulated loss (14,728,309) (6,195,167) (946,436) (63,681) (289,787) (394,356) 733,773 (21,883,963) Total Stockholders' Deficit attributable to LEO MOTORS, INC. 6,956,597 (1,307,304 629,229 26,572 (154,408) (213,851) (1,824,905) Non-controlling interest 0 0 0 0 0 0 2,729,375 2,729,375 Total Stockholders' Deficit 6,956,597 (1,307,304 629,229 26,572 (154,408) (213,851) 904,470 Total Liabilities and Stockholders' Deficit $8,096,486 332,981 1,241,263 170,023 409,928 556,305 (5,032,365) 5,774,621

Note 1 - Company Background (De

Note 1 - Company Background (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2010	Dec. 31, 2015	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%
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued	7,000,000
Equity Method Investment, Ownership Percentage			30.00%
LGM Co. Ltd
Conversion of Stock, Shares Converted		813,747
Leo Motors Factory 1
Noncash or Part Noncash Acquisition, Interest Acquired		50.00%
Leo Trade
Noncash or Part Noncash Acquisition, Interest Acquired		50.00%

Note 3 - Earnings Per Share_ 35

Note 3 - Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Details
Net Income (Loss)	$ (4,490,972)	$ (4,480,544)
Weighted-average common stock Outstanding - basic	155,866,313	97,393,209
Equivalents
Stock options	0	0
Warrants	0	0
Convertible Notes	0	662,889
Weighted-average common shares outstanding - Diluted	155,866,313	98,056,098

Note 4 - Due To Related Party (

Note 4 - Due To Related Party (Details) - USD ($)	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Due to related parties	$ 140,396	$ 116,617	$ 150,637
Officer
Due to related parties	$ 140,396		$ 150,637

Note 5 - Payments Received in37

Note 5 - Payments Received in Advance (Details) - USD ($)	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Details
Prepayment to suppliers	$ 279,229	$ 297,720	$ 306,969

Note 6 - Going Concern (Details

Note 6 - Going Concern (Details) - USD ($)	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Details
Accumulated loss	$ (25,404,609)	$ (21,883,963)	$ (21,357,211)

Note 7 - Commitments and Cont39

Note 7 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Details)	Dec. 31, 2015USD ($)
Details
2,016	$ 220,827
2,017	101,249
2018 and beyond	0
Total Commitment	$ 322,076

Note 7 - Commitments and Cont40

Note 7 - Commitments and Contingencies (Details)	Nov. 10, 2012USD ($)
Housing Project In The Republic Of The Congo | PDI
Contractual Obligation	$ 1,000,000

Note 8 - Inventories_ Schedul41

Note 8 - Inventories: Schedule of Inventories (Details) - USD ($)	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Details
Raw material	$ 0		$ 0
Work in process	496,971		279,783
Finished goods	0		0
Inventories	$ 496,971	$ 295,159	$ 279,783

Note 9 - Property and Equipme42

Note 9 - Property and Equipment: Property, Plant and Equipment (Details) - USD ($)	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Total property and equipment	$ 561,988		$ 258,416
Accumulated depreciation	(398,987)		(219,796)
Property and equipment, net	163,001	$ 185,984	38,620
ToolsMember
Total property and equipment	95,771		12,906
Office
Total property and equipment	109,447		79,963
Facility Equipment
Total property and equipment	210,502		157,966
Vehicles
Total property and equipment	$ 146,268		$ 7,581

Note 9 - Property and Equipme43

Note 9 - Property and Equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Details
Depreciation	$ 207,837	$ 19,470

Note 10 - Investments (Details)

Note 10 - Investments (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Impairment of investment	$ 0	$ 762,000
Housing Project In The Republic Of The Congo | PDI
Long-term Investments	$ 270,000

Note 11 - Short Term Borrowin45

Note 11 - Short Term Borrowings and Notes Payable (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Mar. 31, 2015
Short term borrowings	$ 7,661	$ 448,801	$ 471,689
Conversion of derivative liability	819,922	$ 569,584
Note 1
Short term borrowings	448,801
Note 2
Conversion of derivative liability	$ 819,922
Note 2 | Common Stock
Debt Instrument, Interest Rate, Stated Percentage	4.00%
Debt Conversion, Converted Instrument, Shares Issued	14,924,263

Note 11 - Short Term Borrowin46

Note 11 - Short Term Borrowings and Notes Payable: Schedule of Short-term Debt (Details) - USD ($)	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
NH Bank six month note extended at 7.25%	$ 323,043
Notes Payable current portion	49,397	$ 353,747	$ 526,257
Notes payable long term	$ 273,646	$ 327,701	$ 145,316
Note 3
Debt Instrument, Interest Rate, Stated Percentage	3.65%
Notes Payable to Bank	$ 45,505
Note 4
Debt Instrument, Interest Rate, Stated Percentage	6.24%
Notes Payable to Bank	$ 75,775
Note 5
Debt Instrument, Interest Rate, Stated Percentage	3.64%
Notes Payable to Bank	$ 46,800
Note 6
Debt Instrument, Interest Rate, Stated Percentage	3.28%
Notes Payable to Bank	$ 85,245
Note 7
Debt Instrument, Interest Rate, Stated Percentage	3.83%
Notes Payable to Bank	$ 35,718
Note 8
Debt Instrument, Interest Rate, Stated Percentage	7.25%
Notes Payable to Bank	$ 34,000

Note 12 - Income Taxes (Details

Note 12 - Income Taxes (Details)	12 Months Ended
	Dec. 31, 2015USD ($)
Details
Operating Loss Carryforwards	$ 25,404,609
Valuation reserve increase	$ 1,376,115

Note 12 - Income Taxes_ Sched48

Note 12 - Income Taxes: Schedule of Deferred Tax Assets (Details)	Dec. 31, 2015USD ($)
Details
Deferred Tax Assets	$ 8,637,567
Realization Allowance	(8,637,567)
Balance Recognized	$ 0

Note 12 - Income Taxes_ Sched49

Note 12 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details)	12 Months Ended
	Dec. 31, 2015
Details
Statutory Federal Rate	34.00%
Effect of Valuation Allowance	(34.00%)
Effective Rate	0.00%

Note 13 - Intangible Assets (De

Note 13 - Intangible Assets (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Details
Patents	$ 63,554	$ 63,554
Trademarks	277	277
Goodwill	3,057,003	2,444,558
Intangible assets	3,120,834	2,508,389
Less: impairments	0	0
Intangible assets, net	$ 3,120,834	$ 2,508,389

Note 15 - Derivative Liability

Note 15 - Derivative Liability (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Jul. 31, 2014
Amortization debt discount	$ 275,176	$ 340,568
Derivative Financial Instruments, Liabilities
Liabilities, Fair Value Disclosure, Recurring	$ 0	$ 819,922
Debt Discount			$ 825,529

Note 15 - Derivative Liabilit52

Note 15 - Derivative Liability: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Derivative Financial Instruments, Liabilities - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Liabilities, Fair Value Disclosure, Recurring	$ 0	$ 819,922
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	$ 0

Note 15 - Derivative Liabilit53

Note 15 - Derivative Liability: Assets and Liabilities, Changes in Fair Value, Recurring Basis (Details)	12 Months Ended
	Dec. 31, 2015USD ($)
Details
Derivative Liability, Fair value, Beginning Balance	$ 819,922
Additions	0
Change in fair value	0
Transfers in and/or out of Level 3	(819,922)
Derivative Liability, Fair value, Ending Balance	$ 0

Note 16 - Acquisitions (Details

Note 16 - Acquisitions (Details)	12 Months Ended
	Dec. 31, 2015
Leo Motors Factory 1
Noncash or Part Noncash Acquisition, Interest Acquired	50.00%
Leo Trade
Noncash or Part Noncash Acquisition, Interest Acquired	50.00%

Note 16 - Acquisitions_ Sched55

Note 16 - Acquisitions: Schedule of Consolidated Assets, Liabilities, and Equity of Acquired Entities (Details) - USD ($)	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Assets
Cash and cash equivalents	$ 243,809	$ 466,458	$ 217,178	$ 1,774
Accounts receivable	1,565,114	952,378	542,210
Inventories	496,971	295,159	279,783
Prepayment to suppliers	279,229	297,720	306,969
Other current assets	32,107	228,192	49,705
Total Current Assets	2,617,230	2,239,907	1,395,845
Fixed assets, net	163,001	185,984	38,620
Deposit	346,659	227,896	51,601
Intangible assets	63,831	63,831	63,831
Goodwill	3,057,003	3,057,003	2,444,558
Investments in Subsidiaries		0
Total Non-Current Assets		3,534,714
Total Assets	6,247,724	5,774,621	3,994,455
Current Liabilities:
Accounts payable and accrued expenses	4,082,198	3,313,266	2,152,951
Short term borrowings	7,661	471,689	448,801
Advance from customers	795,431	44,035	40,951
Due to related parties	140,396	116,617	150,637
Taxes payable	99,584	241,021	159,478
Notes Payable current portion	49,397	353,747	526,257
Total Current Liabilities	5,174,667	4,540,375	4,298,997
Long Term Notes	273,646	327,701	145,316
Accrued severance benefits	92,948	2,075	2,150
Total Liabilities	5,671,009	4,870,151	4,446,463
Leo Motors, Inc.("LEOM") Equity(Deficit):
Common stock	158,949	154,144	138,624
Additional paid-in capital	20,367,272	19,396,940	17,723,248
Accumulated other comprehensive income	1,251,120	507,974	511,229
Accumulated loss	(25,404,609)	(21,883,963)	(21,357,211)
Total Equity(Deficit) Leo Motors, Inc.	(3,627,268)	(1,824,905)	(2,984,110)
Non-controlling interest	4,203,983	2,729,375	2,532,102
Total Equity(Deficit)	576,715	904,470	(452,008)	$ (518,320)
Total Liabilities and Equity(Deficit)	$ 6,247,724	5,774,621	$ 3,994,455
Leo Motors US
Assets
Cash and cash equivalents		374
Accounts receivable		0
Inventories		0
Prepayment to suppliers		0
Other current assets		0
Total Current Assets		374
Fixed assets, net		6,744
Deposit		0
Intangible assets		0
Goodwill		0
Investments in Subsidiaries		8,089,368
Total Non-Current Assets		8,096,112
Total Assets		8,096,486
Current Liabilities:
Accounts payable and accrued expenses		1,139,889
Short term borrowings		0
Advance from customers		0
Due to related parties		0
Taxes payable		0
Notes Payable current portion		0
Total Current Liabilities		1,139,889
Long Term Notes		0
Accrued severance benefits		0
Total Liabilities		1,139,889
Leo Motors, Inc.("LEOM") Equity(Deficit):
Common stock		154,144
Additional paid-in capital		21,253,084
Accumulated other comprehensive income		277,678
Accumulated loss		(14,728,309)
Total Equity(Deficit) Leo Motors, Inc.		6,956,597
Non-controlling interest		0
Total Equity(Deficit)		6,956,597
Total Liabilities and Equity(Deficit)		8,096,486
Leo Motors Korea
Assets
Cash and cash equivalents		67,853
Accounts receivable		0
Inventories		0
Prepayment to suppliers		137,236
Other current assets		7,297
Total Current Assets		212,386
Fixed assets, net		10,530
Deposit		46,234
Intangible assets		63,831
Goodwill		0
Investments in Subsidiaries		0
Total Non-Current Assets		120,595
Total Assets		332,981
Current Liabilities:
Accounts payable and accrued expenses		1,060,342
Short term borrowings		256,392
Advance from customers		30,381
Due to related parties		116,617
Taxes payable		137,780
Notes Payable current portion		0
Total Current Liabilities		1,601,512
Long Term Notes		36,698
Accrued severance benefits		2,075
Total Liabilities		1,640,285
Leo Motors, Inc.("LEOM") Equity(Deficit):
Common stock		2,831,276
Additional paid-in capital		1,831,184
Accumulated other comprehensive income		225,403
Accumulated loss		(6,195,167)
Total Equity(Deficit) Leo Motors, Inc.		(1,307,304)
Non-controlling interest		0
Total Equity(Deficit)		(1,307,304)
Total Liabilities and Equity(Deficit)		332,981
LGM Co. Ltd
Assets
Cash and cash equivalents		211,957
Accounts receivable		476,777
Inventories		295,159
Prepayment to suppliers		160,484
Other current assets		57,403
Total Current Assets		1,201,780
Fixed assets, net		16,846
Deposit		22,637
Intangible assets		0
Goodwill		0
Investments in Subsidiaries		0
Total Non-Current Assets		39,483
Total Assets		1,241,263
Current Liabilities:
Accounts payable and accrued expenses		291,900
Short term borrowings		183,245
Advance from customers		9,141
Due to related parties		0
Taxes payable		10,673
Notes Payable current portion		0
Total Current Liabilities		494,959
Long Term Notes		117,075
Accrued severance benefits		0
Total Liabilities		612,034
Leo Motors, Inc.("LEOM") Equity(Deficit):
Common stock		284,870
Additional paid-in capital		1,285,902
Accumulated other comprehensive income		4,893
Accumulated loss		(946,436)
Total Equity(Deficit) Leo Motors, Inc.		629,229
Non-controlling interest		0
Total Equity(Deficit)		629,229
Total Liabilities and Equity(Deficit)		1,241,263
Leo Motors Factory 1
Assets
Cash and cash equivalents		91,187
Accounts receivable		8,754
Inventories		0
Prepayment to suppliers		0
Other current assets		1,595
Total Current Assets		101,536
Fixed assets, net		63,683
Deposit		4,804
Intangible assets		0
Goodwill		0
Investments in Subsidiaries		0
Total Non-Current Assets		68,487
Total Assets		170,023
Current Liabilities:
Accounts payable and accrued expenses		97,840
Short term borrowings		32,052
Advance from customers		0
Due to related parties		0
Taxes payable		13,559
Notes Payable current portion		0
Total Current Liabilities		143,451
Long Term Notes		0
Accrued severance benefits		0
Total Liabilities		143,451
Leo Motors, Inc.("LEOM") Equity(Deficit):
Common stock		90,253
Additional paid-in capital		0
Accumulated other comprehensive income		0
Accumulated loss		(63,681)
Total Equity(Deficit) Leo Motors, Inc.		26,572
Non-controlling interest		0
Total Equity(Deficit)		26,572
Total Liabilities and Equity(Deficit)		170,023
Leo Motors Factory 2
Assets
Cash and cash equivalents		2,914
Accounts receivable		48,425
Inventories		0
Prepayment to suppliers		0
Other current assets		125,212
Total Current Assets		176,551
Fixed assets, net		88,181
Deposit		145,196
Intangible assets		0
Goodwill		0
Investments in Subsidiaries		0
Total Non-Current Assets		233,377
Total Assets		409,928
Current Liabilities:
Accounts payable and accrued expenses		307,112
Short term borrowings		0
Advance from customers		4,513
Due to related parties		0
Taxes payable		78,783
Notes Payable current portion		0
Total Current Liabilities		390,408
Long Term Notes		173,928
Accrued severance benefits		0
Total Liabilities		564,336
Leo Motors, Inc.("LEOM") Equity(Deficit):
Common stock		135,379
Additional paid-in capital		0
Accumulated other comprehensive income		0
Accumulated loss		(289,787)
Total Equity(Deficit) Leo Motors, Inc.		(154,408)
Non-controlling interest		0
Total Equity(Deficit)		(154,408)
Total Liabilities and Equity(Deficit)		409,928
Leo Trade
Assets
Cash and cash equivalents		92,173
Accounts receivable		418,422
Inventories		0
Prepayment to suppliers		0
Other current assets		36,685
Total Current Assets		547,280
Fixed assets, net		0
Deposit		9,025
Intangible assets		0
Goodwill		0
Investments in Subsidiaries		0
Total Non-Current Assets		9,025
Total Assets		556,305
Current Liabilities:
Accounts payable and accrued expenses		416,183
Short term borrowings		0
Advance from customers		0
Due to related parties		0
Taxes payable		226
Notes Payable current portion		353,747
Total Current Liabilities		770,156
Long Term Notes		0
Accrued severance benefits		0
Total Liabilities		770,156
Leo Motors, Inc.("LEOM") Equity(Deficit):
Common stock		180,505
Additional paid-in capital		0
Accumulated other comprehensive income		0
Accumulated loss		(394,356)
Total Equity(Deficit) Leo Motors, Inc.		(213,851)
Non-controlling interest		0
Total Equity(Deficit)		(213,851)
Total Liabilities and Equity(Deficit)		556,305
ELIM Entries
Assets
Cash and cash equivalents		0
Accounts receivable		0
Inventories		0
Prepayment to suppliers		0
Other current assets		0
Fixed assets, net		0
Deposit		0
Intangible assets		0
Goodwill		3,057,003
Investments in Subsidiaries		(8,089,368)
Total Assets		(5,032,365)
Current Liabilities:
Accounts payable and accrued expenses		0
Short term borrowings		0
Advance from customers		0
Due to related parties		0
Taxes payable		0
Notes Payable current portion		0
Long Term Notes		0
Accrued severance benefits		0
Leo Motors, Inc.("LEOM") Equity(Deficit):
Common stock		(3,522,283)
Additional paid-in capital		(4,973,230)
Accumulated other comprehensive income		0
Accumulated loss		733,773
Non-controlling interest		2,729,375
Total Liabilities and Equity(Deficit)		$ (5,032,365)