Leo Motors (LEOM) 10-Q 20 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 14, 2017
Details
Registrant Name	Leo Motors, Inc.
Registrant CIK	1,356,564
SEC Form	10-Q
Period End date	Sep. 30, 2017
Fiscal Year End	--12-31
Trading Symbol	leom
Tax Identification Number (TIN)	814,108,026
Number of common stock shares outstanding		174,801,408
Filer Category	Smaller Reporting Company
Current with reporting	Yes
Voluntary filer	No
Well-known Seasoned Issuer	No
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Contained File Information, File Number	000-53525
Entity Incorporation, State Country Name	Nevada
Entity Address, Address Line One	ES Tower 7F, Teheranro 52 Gil 17
Entity Address, City or Town	Gangnamgu, Seoul,
Entity Address, Country	Republic of Korea
Entity Address, Postal Zip Code	6,212
City Area Code	82-70
Local Phone Number	4699-3585

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 434,070	$ 460,671
Accounts receivable	495,438	433,205
Inventories	996,565	1,088,298
Prepayment to suppliers	602,402	457,643
Other current assets	186,387	91,973
Total Current Assets	2,714,862	2,531,790
Fixed assets, net	371,432	129,157
Deposits and Other Assets	727,946	346,255
Available for Sale Securities	417,873	0
Intangible assets	26,718	88,503
Goodwill	0	2,613,486
Total Assets	4,258,831	5,709,191
Current Liabilities:
Accounts payable	1,883,248	1,411,130
Accrued expenses	5,943,985	4,345,772
Advance from customers	300,287	386,624
Due to related parties	519,951	358,680
Taxes payable	273,992	29,635
Notes Payable current portion	271,082	268,824
Total Current Liabilities	9,192,545	6,800,665
Accrued retirement benefits	462,582	216,195
Other long term liabilities	261,180	72,851
Total Liabilities	9,916,307	7,089,711
Leo Motors, Inc. ('LEOM') Equity (Deficit):
Common stock ($0.001 par value; 300,000,000 shares authorized); 174,801,408 and 172,528,016 shares issued and outstanding at September 30, 2017 and December 31, 2016	174,801	172,528
Additional paid-in capital	22,813,204	21,411,832
Accumulated other comprehensive income	1,358,816	1,184,443
Accumulated loss	(34,853,295)	(29,776,217)
Total Equity (Deficit) Leo Motors, Inc.	(10,506,474)	(7,007,414)
Non-controlling interest	4,848,998	5,626,894
Total Equity (Deficit)	(5,657,476)	(1,380,520)
Total Liabilities and Equity(Deficit)	$ 4,258,831	$ 5,709,191

CONSOLIDATED BALANCE SHEETS - P

CONSOLIDATED BALANCE SHEETS - Parenthetical - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Details
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	300,000,000	300,000,000
Common Stock, Shares, Issued	174,801,408	172,528,016
Common Stock, Shares, Outstanding	174,801,408	172,528,016

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Details
Revenues	$ 988,582	$ 792,037	$ 1,821,525	$ 2,344,199
Cost of Revenues	783,136	503,484	1,574,605	1,484,572
Gross Profit	205,446	288,553	246,920	859,627
Operating Expenses	1,076,492	1,759,520	4,160,535	3,676,871
Income(loss) from Continuing Operations	(871,046)	(1,470,967)	(3,913,615)	(2,817,244)
Other Income (Expenses)
Interest Expense	(7,006)	(7,817)	(21,684)	(25,581)
Interest Income	316	0	316	0
Goodwill Impairment	(2,613,486)	0	(2,613,486)	0
Currency Gains (Losses)	265,664	(205,495)	274,972	(29,865)
Non-Operating (expense) income	340,515	60,100	452,712	96,597
Total Other Income (Expenses)	(2,013,997)	(153,212)	(1,907,170)	41,151
Income(loss) from Continuing Operations Before Income Taxes	(2,885,043)	(1,624,179)	(5,820,785)	(2,776,093)
Income Tax Expense	4	459	1,253	459
Net Income(Loss)	(2,885,047)	(1,624,638)	(5,822,038)	(2,776,552)
Income(loss) attributable to non-controlling interest	(157,454)	(126,853)	(744,960)	(86,890)
Net Income(Loss) Attributable To Leo Motors, Inc.	(2,727,593)	(1,497,785)	(5,077,078)	(2,689,662)
Other Comprehensive Income:
Net Income(Loss)	(2,885,047)	(1,624,638)	(5,822,038)	(2,776,552)
Unrealized foreign currency translation gain (loss)	35,069	(205,495)	101,736	(29,865)
Comprehensive Income (loss) Attributable to Leo Motors, Inc.	$ (2,849,978)	$ (1,830,133)	$ (5,720,302)	$ (2,806,417)
Net Loss per Common Share:
Basic	$ (0.02)	$ (0.01)	$ (0.03)	$ (0.02)
Diluted	$ (0.02)	$ (0.01)	$ (0.03)	$ (0.02)
Weighted Average Common Shares Outstanding:
Basic	174,606,521	162,919,011	174,203,742	162,853,533
Diluted	174,606,521	162,919,011	174,203,742	162,853,533

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from Operating Activities:
Net loss	$ (5,077,078)	$ (2,689,662)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	123,969	66,286
Write off intangibles	2,675,271	0
Foreign currency translation	0	29,865
Stock-based compensation	66,103	206,112
Non-Controlling Interest	777,896	0
Changes in assets and liabilities:
Prepaid Expenses	(6,477)	0
Accounts Receivable	(62,233)	587,045
Inventories	(91,733)	(372,242)
Prepayment to suppliers	144,759	(346,141)
Non Trade Receivables	142,739	0
Other current assets	(87,937)	(57,025)
Other assets	(381,691)	10,301
Accounts payable, other payables and accrued expenses	2,070,332	797,071
Accrued retirement benefits	246,387	67,930
Advances from customers	(86,337)	(37,814)
Taxes payable	244,357	(40,126)
Net cash used in operating activities:	698,327	(1,778,400)
Cash flows from investing activities:
Purchase of property and equipment	(371,998)	(61,608)
Purchase of Available for Sale Securities	(417,873)	0
Purchase of Additional Equity in Subsidiaries	(531,080)	0
Net cash provided(used) in investing activities:	(1,320,951)	(61,608)
Cash flows from financing activities:
Proceeds (payments) on notes payable / long term payables	188,329	423,448
Payments on notes payable	(9,923)	(235,175)
Proceeds on notes payable - related party	171,194	32,396
Sale of Equity in Subsidiary	1,137,542
Other Comprehensive Income	174,373	0
Proceeds from issuance of stock & warrants	200,000	2,873,301
Net cash provided(used) by financing activities:	1,861,515	3,093,970
Effect of Foreign Exchange Rate on Cash	(1,265,492)	0
Net Increase in cash and cash equivalents:	(26,601)	1,253,962
Cash and cash equivalents - beginning of year	460,671	243,809
Cash and cash equivalents - end of period	434,070	1,497,771
Supplemental disclosure of cash flow activities:
Interest	21,684	25,581
Income taxes	0	0
Supplemental disclosures of non-cash activities:
Common stock issued for services	66,103	206,112
Goodwill on Acquisition	$ 0	$ 660,928

Note 1 - Company Background

Note 1 - Company Background	9 Months Ended
	Sep. 30, 2017
Notes
Note 1 - Company Background	The Company acquired Leo AIC Co., Ltd. (“Leo AIC”)(formerly known as Lelcon) on June 3, 2016, which became a subsidiary of the Company. With the acquisition, the Company was engaged in connected car and artificial intelligence (AI) related businesses for a smart city. On March 8, 2017, the Company acquired 100% of a startup corporation owned by its director called Leo Members, Inc. (“Leo Members”). This new wholly owned subsidiary then exchanged with the Company, shares in Leo Factory 1, Leo Factory 2, and Leo Trading in a common control transaction. Certain information and disclosures normally included in the notes to financial statements have been condensed or omitted as permitted by the rules and regulations of the Securities and Exchange Commission, although the Company believes the disclosure is adequate to make the information presented not misleading. The accompanying unaudited financial statements should be read in conjunction with the financial statements of the Company for the year ended December 31, 2016.

Note 2 - Policies

Note 2 - Policies	9 Months Ended
	Sep. 30, 2017
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 Leo Korea, LGM, Leo Factory 1, Leo Factory 2, Leo Trading, Leo Members, and Leo AIC. The Company has significant control of all subsidiaries through direct as well as indirect stock ownership and voting board control from parent board members at the subsidiary level. 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 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. Inventory Inventory consist mostly of items purchased as finished goods and used in the repair of automobiles and boats and are recorded at cost and is valued using the first in, first out method. 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. Reclassifications Certain reclassifications have been made to prior year balances to conform to the current year presentation. Foreign Currency Translation And Comprehensive Income The reporting currency of the Company is the US Dollar (US$). The functional currency of the parent company is the US$ and the functional currency of the Company’s operating subsidiaries is the Korean Won (“KRW”). The subsidiaries 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 - Due To Related Party

Note 3 - Due To Related Party	9 Months Ended
	Sep. 30, 2017
Notes
Note 3 - Due To Related Party	NOTE 3 - DUE TO RELATED PARTY The company is indebted to its officer for advances. There are various advances and repayments throughout the periods in small amounts. They are all short term in nature and provide working capital to the various subsidiaries. Repayment is on demand without interest. The balance was $519,951 at September 30, 2017 and $358,680 at December 31, 2016. There are no other related party transactions.

Note 4 - Payments Received in A

Note 4 - Payments Received in Advance	9 Months Ended
	Sep. 30, 2017
Notes
Note 4 - Payments Received in Advance	NOTE 4 - 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 September 30, 2017 and December 31, 2016, the balance of payments received in advance was $300,287 and $386,624, respectively.

Note 5 - Going Concern

Note 5 - Going Concern	9 Months Ended
	Sep. 30, 2017
Notes
Note 5 - Going Concern	NOTE 5 - GOING CONCERN As reported in the consolidated financial statements, the Company has accumulated deficits of $34,853,295 as of September 30, 2017 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 6 - Commitments and Contin

Note 6 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Notes
Note 6 - Commitments and Contingencies	NOTE 6 - COMMITMENTS AND CONTINGENCIES (a) Lease Commitments The Company leases its office space in Ha-Nam City in Korea which expires on December 31, 2017. The minimum obligations under such commitments for the years ending December 31, 2017 through December 31, 2019 are listed on the table below. For the Year Ending Amount 2017 $ 37,500 2018 0 2019 and beyond 0 Total Commitment $ 37,500 (b) Loss Contingencies The company currently has no loss contingencies.

Note 7 - Inventories

Note 7 - Inventories	9 Months Ended
	Sep. 30, 2017
Notes
Note 7 - Inventories	NOTE 7 - INVENTORIES Inventories consist of the following: Sept 30, 2017 Dec 31, 2016 US$ US$ Raw material $ 62,934 $ 420,768 Work in process 672,098 155,778 Finished goods 261,533 511,752 $ 996,565 $ 1,088,298

Note 8 - Property and Equipment

Note 8 - Property and Equipment	9 Months Ended
	Sep. 30, 2017
Notes
Note 8 - Property and Equipment	NOTE 8 - PROPERTY AND EQUIPMENT Property and equipment consisted of the following: September 30, 2017 Dec 31, 2016 Vehicles $ 159,835 $ 87,218 Tools 231,266 71,818 Machinery 51,643 71,818 Office 217,805 179,791 Facility equipment 252,444 202,168 Total property and equipment 912,993 540,995 Accumulated depreciation (541,561) (411,838) Property and equipment, net $ 371,432 $ 129,157 Depreciation expense for the Nine months ended September 30, 2017 and 2016 amounted to $123,969 and $66,286, respectively.

Note 9 - Short Term Borrowings

Note 9 - Short Term Borrowings and Notes Payable	9 Months Ended
	Sep. 30, 2017
Notes
Note 9 - Short Term Borrowings and Notes Payable	NOTE 9 - SHORT TERM BORROWINGS AND NOTES PAYABLE The Company continues to fund itself through borrowing and equity sales until sales return to historical levels. At September 30, 2017 and December 31, 2016, the Company had short term borrowings of $271,082 and $268,824. 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. As of September 30, 2017 and December 31, 2016, the major components of our notes and borrowings consisted of the following: Sept 30, 2017 Dec 31, 2016 Bank loan six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.77% interest only payable monthly and secured by the Company. $ 47,632 $ 47,258 Bank loan six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.28% interest only payable monthly. 87,333 69,319 Bank loan six month note extended with 12 month term renewable periods with a variable interest rate currently at 13.00% interest only payable monthly and secured by the Company. 61,133 86,648 Bank loan six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.77 interest only payable monthly. 46,688 34,406 Bank loan six month note extended with 12 month term renewable periods with a variable interest rate currently at 10.34 interest only payable monthly. 28,296 31,193 Total Liabilities 271,082 268,824 Less current portion 271,082 268,824 Long term debt $ 0 $ 0

Note 10 - Intangible Assets

Note 10 - Intangible Assets	9 Months Ended
	Sep. 30, 2017
Notes
Note 10 - Intangible Assets	NOTE 10 - 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 2016 first quarter acquisition by $612,445 but also impaired the goodwill on its 2015 acquisitions. The company has impaired the remainder of its goodwill in the quarter ended September 30, 2017. September 30, 2017 Dec 31, 2016 Patents $ 40,306 $ 88,226 Trademarks 277 277 Goodwill 3,717,931 3,717,931 Intangible assets 3,758,514 3,806,434 Less impairments (3,731,796) (1,104,445) Intangible assets, net $ 26,718 $ 2,701,989

NOTE 11 - EQUITY

NOTE 11 - EQUITY	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 11 - EQUITY	NOTE 11 - EQUITY In the nine months ended September 30, 2017, the Company sold 2,000,000 shares of common stock for $200,000. The Company issued 434,934 shares of common stock, with a fair market value of $66,103, for compensation. The Company sold equity in one of its subsidiaries for approximately $1.1 million US dollars.

NOTE 12 - SUBSEQUENT EVENTS

NOTE 12 - SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2017
Notes
NOTE 12 - SUBSEQUENT EVENTS	On August 1, 2017, the Company acquired 15.66% of Leo Kartrena, Inc. (“Leo Kartrena”). The Company invested an aggregate of Two Hundred Sixty Million (260,000,000 KRW) South Korean Won (approximately $226,000 USD), or Seven Hundred (700 KRW) South Korean Won (approximately $0.61 USD per share), to Leo Kartrena in consideration for the issuance of Three Hundred Seventy One Thousand Four Hundred Twenty Eight (371,428) shares of Leo Kartrena’s common stock. Leo Kartrena is an electric Go Kart development company which will use the battery swappable electric Go Kart developed by LGM. As its Go Kart venues develop, Leo Kartrena will be a significant client of LGM and the Company.

Note 2 - Policies (Policies)

Note 2 - Policies (Policies)	9 Months Ended
	Sep. 30, 2017
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 Leo Korea, LGM, Leo Factory 1, Leo Factory 2, Leo Trading, Leo Members, and Leo AIC. The Company has significant control of all subsidiaries through direct as well as indirect stock ownership and voting board control from parent board members at the subsidiary level. 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 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 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	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.
Inventory	Inventory Inventory consist mostly of items purchased as finished goods and used in the repair of automobiles and boats and are recorded at cost and is valued using the first in, first out method.
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.
Reclassifications	Reclassifications Certain reclassifications have been made to prior year balances to conform to the current year presentation.
Foreign Currency Translation and Comprehensive Income	Foreign Currency Translation And Comprehensive Income The reporting currency of the Company is the US Dollar (US$). The functional currency of the parent company is the US$ and the functional currency of the Company’s operating subsidiaries is the Korean Won (“KRW”). The subsidiaries 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 6 - Commitments and Cont19

Note 6 - Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
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, 2017. The minimum obligations under such commitments for the years ending December 31, 2017 through December 31, 2019 are listed on the table below. For the Year Ending Amount 2017 $ 37,500 2018 0 2019 and beyond 0 Total Commitment $ 37,500

Note 7 - Inventories (Tables)

Note 7 - Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Inventories	Inventories consist of the following: Sept 30, 2017 Dec 31, 2016 US$ US$ Raw material $ 62,934 $ 420,768 Work in process 672,098 155,778 Finished goods 261,533 511,752 $ 996,565 $ 1,088,298

Note 8 - Property and Equipme21

Note 8 - Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Property, Plant and Equipment	Property and equipment consisted of the following: September 30, 2017 Dec 31, 2016 Vehicles $ 159,835 $ 87,218 Tools 231,266 71,818 Machinery 51,643 71,818 Office 217,805 179,791 Facility equipment 252,444 202,168 Total property and equipment 912,993 540,995 Accumulated depreciation (541,561) (411,838) Property and equipment, net $ 371,432 $ 129,157

Note 9 - Short Term Borrowing22

Note 9 - Short Term Borrowings and Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Short-term Debt	As of September 30, 2017 and December 31, 2016, the major components of our notes and borrowings consisted of the following: Sept 30, 2017 Dec 31, 2016 Bank loan six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.77% interest only payable monthly and secured by the Company. $ 47,632 $ 47,258 Bank loan six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.28% interest only payable monthly. 87,333 69,319 Bank loan six month note extended with 12 month term renewable periods with a variable interest rate currently at 13.00% interest only payable monthly and secured by the Company. 61,133 86,648 Bank loan six month note extended with 12 month term renewable periods with a variable interest rate currently at 3.77 interest only payable monthly. 46,688 34,406 Bank loan six month note extended with 12 month term renewable periods with a variable interest rate currently at 10.34 interest only payable monthly. 28,296 31,193 Total Liabilities 271,082 268,824 Less current portion 271,082 268,824 Long term debt $ 0 $ 0

Note 10 - Intangible Assets (Ta

Note 10 - Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Intangible Assets and Goodwill	September 30, 2017 Dec 31, 2016 Patents $ 40,306 $ 88,226 Trademarks 277 277 Goodwill 3,717,931 3,717,931 Intangible assets 3,758,514 3,806,434 Less impairments (3,731,796) (1,104,445) Intangible assets, net $ 26,718 $ 2,701,989

Note 1 - Company Background (De

Note 1 - Company Background (Details) - shares	3 Months Ended	9 Months Ended
	Mar. 31, 2010	Sep. 30, 2017	Dec. 31, 2011
Common Stock
Conversion of Stock, Shares Issued		47,352,450
Leo B T 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%
PDI
Long Term Investment Percentage Of Investment Owned		10.00%
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%
Leo Members, Inc
Noncash or Part Noncash Acquisition, Interest Acquired		100.00%

Note 3 - Due To Related Party (

Note 3 - Due To Related Party (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Due to related parties	$ 519,951	$ 358,680
Officer
Due to related parties	$ 519,951	$ 358,680

Note 4 - Payments Received in26

Note 4 - Payments Received in Advance (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Details
Advance from customers	$ 300,287	$ 386,624

Note 5 - Going Concern (Details

Note 5 - Going Concern (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Details
Accumulated deficits	$ (34,853,295)	$ (29,776,217)

Note 6 - Commitments and Cont28

Note 6 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Details)	Sep. 30, 2017USD ($)
Details
2,017	$ 37,500
2,018	0
2019 and beyond	0
Total Commitment	$ 37,500

Note 7 - Inventories_ Schedule

Note 7 - Inventories: Schedule of Inventories (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Details
Raw material	$ 62,934	$ 420,768
Work in process	672,098	155,778
Finished goods	261,533	511,752
Inventories	$ 996,565	$ 1,088,298

Note 8 - Property and Equipme30

Note 8 - Property and Equipment: Property, Plant and Equipment (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment, Gross	$ 912,993	$ 540,995
Accumulated depreciation	(541,561)	(411,838)
Property and equipment, net	371,432	129,157
Tools
Property, Plant and Equipment, Gross	231,266	71,818
Other Machinery and Equipment
Property, Plant and Equipment, Gross	51,643	71,818
Office Equipment
Property, Plant and Equipment, Gross	217,805	179,791
Facility Equipment
Property, Plant and Equipment, Gross	252,444	202,168
Vehicles
Property, Plant and Equipment, Gross	$ 159,835	$ 87,218

Note 8 - Property and Equipme31

Note 8 - Property and Equipment (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Details
Depreciation	$ 123,969	$ 66,286

Note 9 - Short Term Borrowing32

Note 9 - Short Term Borrowings and Notes Payable (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Note 1
Short-term Debt	$ 271,082	$ 268,824

Note 9 - Short Term Borrowing33

Note 9 - Short Term Borrowings and Notes Payable: Schedule of Short-term Debt (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Total Liabilities	$ 271,082	$ 268,824
Less current portion	271,082	268,824
Long term debt	0	0
Note 3
Notes payable to bank	47,632	47,258
Note 4
Notes payable to bank	87,333	69,319
Note 5
Notes payable to bank	61,133	86,648
Note 6
Notes payable to bank	46,688	34,406
Note 7
Notes payable to bank	$ 28,296	$ 31,193

Note 10 - Short Term Borrowings

Note 10 - Short Term Borrowings and Notes Payable: Schedule of Short-term Debt - Parenthetical (Details)	Sep. 30, 2017
Note 3
Debt Instrument, Interest Rate, Stated Percentage	3.77%
Note 4
Debt Instrument, Interest Rate, Stated Percentage	3.28%
Note 5
Debt Instrument, Interest Rate, Stated Percentage	13.00%
Note 6
Debt Instrument, Interest Rate, Stated Percentage	3.77%
Note 7
Debt Instrument, Interest Rate, Stated Percentage	10.34%

Note 10 - Intangible Assets (De

Note 10 - Intangible Assets (Details)	12 Months Ended
	Dec. 31, 2016USD ($)
Details
Goodwill increased	$ 612,445

Note 10 - Intangible Assets_ Sc

Note 10 - Intangible Assets: Schedule of Intangible Assets and Goodwill (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Details
Patents	$ 40,306	$ 88,226
Trademarks	277	277
Goodwill	3,717,931	3,717,931
Intangible assets	3,758,514	3,806,434
Less impairments	(3,731,796)	(1,104,445)
Intangible assets, net	$ 26,718	$ 2,701,989

NOTE 11 - EQUITY (Details)

NOTE 11 - EQUITY (Details)	9 Months Ended
	Sep. 30, 2017USD ($)shares
Stock Issued During Period, Value, New Issues | $	$ 200,000
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures | $	$ 66,103
Common Stock
Stock Issued During Period, Shares, New Issues | shares	2,000,000
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | shares	434,934

NOTE 12 - SUBSEQUENT EVENTS (De

NOTE 12 - SUBSEQUENT EVENTS (Details) - Leo Kartrena, Inc.	Aug. 01, 2017USD ($)$ / sharesshares
Business Acquisition, Percentage of Voting Interests Acquired	15.66%
Stock Issued During Period, Value, Acquisitions	$ 226,000
Business Acquisition, Share Price | $ / shares	$ 0.61
Common Stock
Stock Issued During Period, Shares, Acquisitions | shares	371,428
Korea (South), Won
Stock Issued During Period, Value, Acquisitions	$ 260,000,000