Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 8-May-15 | |
Document And Entity Information | ||
Entity Registrant Name | Start Scientific, Inc. | |
Entity Central Index Key | 1368761 | |
Document Type | 10-Q | |
Document Period End Date | 31-Mar-15 | |
Amendment Flag | FALSE | |
Current Fiscal Year End Date | -19 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 131,665,000 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2015 |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $5,431 | $452 |
Total Current Assets | 5,431 | 452 |
TOTAL ASSETS | 5,431 | 452 |
CURRENT LIABILITIES | ||
Accounts payable | 28,997 | 12,120 |
Accrued expenses | 621,069 | 652,986 |
Accounts payable and accrued liabilities - related parties | 603,563 | 604,829 |
Convertible debenture/notes payable (net of discount of $125,973 and $-0-, respectively) | 14,527 | 0 |
Notes payable | 547,860 | 547,860 |
Notes payable - related parties | 109,330 | 131,830 |
Derivative liability | 269,930 | 0 |
Total Current Liabilities | 2,195,276 | 1,949,625 |
TOTAL LIABILITIES | 2,195,276 | 1,949,625 |
STOCKHOLDERS' DEFICIT | ||
Preferred stock, $0.0001 par value; 100 shares authorized, 100 and -0- issued and outstanding, respectively | 0 | 0 |
Common stock, $0.0001 par value; 500,000,000 shares authorized, 131,665,000 and 125,665,000 shares issued and outstanding, respectively | 13,167 | 12,567 |
Additional paid-in-capital | 13,669,297 | 12,619,897 |
Accumulated deficit | -15,872,309 | -14,581,637 |
Total Stockholders' Deficit | -2,189,845 | -1,949,173 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $5,431 | $452 |
Balance_Sheets_Parenthetical
Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Convertible debenture/notes payable - net of discount | $125,973 | $0 |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 100 | 100 |
Preferred stock, shares issued | 100 | 0 |
Preferred stock, shares outstanding | 100 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 500,000,000 | 500,000,000 |
Common stock, shares issued | 131,665,000 | 125,665,000 |
Common stock, shares outstanding | 131,665,000 | 125,665,000 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||
NET REVENUES | $0 | $0 |
OPERATING EXPENSES | ||
Salaries and consulting | 1,050,000 | 977,500 |
Professional fees | 76,557 | 47,588 |
Other selling, general and administrative | 824 | 70 |
Total Operating Expenses | 1,127,381 | 1,025,158 |
LOSS FROM OPERATIONS | -1,127,381 | -1,025,158 |
OTHER INCOME (EXPENSES) | ||
Loss on change in fair value of derivative liability | -44,456 | 0 |
Interest expense (including amortization of debt discount of $14,527 and $-0-, respectively) | -118,835 | 18,241 |
Total Other Income (Expenses) | -163,291 | 18,241 |
LOSS BEFORE INCOME TAXES | -1,290,672 | -1,043,399 |
INCOME TAX EXPENSE | 0 | 0 |
NET LOSS | ($1,290,672) | ($1,043,399) |
BASIC AND DILUTED: | ||
Net loss per common share | ($0.01) | ($0.01) |
Weighted average shares outstanding | 128,787,222 | 109,876,111 |
Statements_of_Operations_Paren
Statements of Operations (Parenthetical) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Income Statement [Abstract] | ||
Amortization of debt discount | $14,527 | $0 |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | ($1,290,672) | ($1,043,399) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Stock based compensation | 1,050,000 | 965,000 |
Expenses paid by related party | 0 | 2,694 |
Non-cash interest expenses | 84,974 | 0 |
Change in fair value of derivative liability | 44,456 | 0 |
Amortization of debt discounts | 14,527 | 0 |
Changes in operating assets and liabilities: | ||
Accounts payable and accrued liabilities - related parties | -1,266 | 76,418 |
Accounts payable and accrued expenses | -15,040 | -9,780 |
Net Cash Used by Operating Activities | -113,021 | -9,067 |
CASH FLOWS FROM INVESTING ACTIVITIES: | 0 | 0 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from convertible debentures | 140,500 | 0 |
Proceeds from notes payable - related parties | 0 | 550 |
Payments on notes payable - related parties | -22,500 | 0 |
Net Cash Provided by Financing Activities | 118,000 | 550 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 4,979 | -8,517 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 452 | 8,799 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 5,431 | 282 |
Cash Payments For: | ||
Interest | 614 | 2,390 |
Income taxes | 0 | 0 |
Non-cash financing activity: | ||
Common stock issued for services | $1,050,000 | $965,000 |
NOTE_1_BASIS_OF_FINANCIAL_STAT
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION | NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION |
The accompanying unaudited financial statements have been prepared by Start Scientific, Inc. (the "Company") pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim financial statements be read in conjunction with the Company’s audited financial statements and notes thereto included in its Form 10-K for the year ended December 31, 2014. Operating results for the three months ended March 31, 2015 are not necessarily indicative of the results to be expected for the year ending December 31, 2015. |
NOTE_2_GOING_CONCERN_CONSIDERA
NOTE 2 - GOING CONCERN CONSIDERATIONS | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NOTE 2 - GOING CONCERN CONSIDERATIONS | NOTE 2 - GOING CONCERN CONSIDERATIONS |
The accompanying condensed financial statements have been prepared using generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. As reported in its Annual Report on Form 10-K for the year ended December 31, 2014, the Company has incurred operating losses of $14,581,637 from inception of the Company through December 31, 2014. The Company’s accumulated deficit at March 31, 2015 was $15,872,309 and had a working capital deficit, continued losses, and negative cash flows from operations. These factors combined, raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans to address and alleviate these concerns are as follows: | |
The Company’s management continues to develop a strategy of exploring all options available to it so that it can develop successful operations and have sufficient funds, therefore, as to be able to operate over the next twelve months. The Company is attempting to improve these conditions by way of financial assistance through issuances of additional equity and by generating revenues through sales of products and services. No assurance can be given that funds will be available, or, if available, that it will be on terms deemed satisfactory to management. 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 attain profitable operations. The accompanying condensed financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result from the outcome of these uncertainties. |
NOTE_3_STOCK_BASED_COMPENSATIO
NOTE 3 - STOCK BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2015 | |
Equity [Abstract] | |
NOTE 3 - STOCK BASED COMPENSATION | NOTE 3 - STOCK BASED COMPENSATION |
During the three months ended March 31, 2015, the Company issued a total of 6,000,000 shares of common stock for consulting services rendered to the Company. The stock was valued at the market price on the date of issuance which totaled $1,050,000. This amount is included in salaries and consulting expenses on the statement of operations. |
NOTE_4_RELATED_PARTY_TRANSACTI
NOTE 4 - RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2015 | |
Related Party Transactions [Abstract] | |
NOTE 4 - RELATED PARTY TRANSACTIONS | NOTE 4 - RELATED PARTY TRANSACTIONS |
During the three months ended March 31, 2015, the Company made payments on notes payable to related parties in the amount of $22,500. Also, accounts payable and accrued liabilities to related parties decreased by $1,266. |
NOTE_5_CONVERTIBLE_NOTES_PAYAB
NOTE 5 - CONVERTIBLE NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
NOTE 5 - CONVERTIBLE NOTES PAYABLE | NOTE 5 - CONVERTIBLE NOTES PAYABLE |
On February 10, 2015, the Company issued a promissory note in the original principal amount of $33,000 to a lender. The Note matures on November 12, 2015 and carries an interest rate of 8% per annum. The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 45% discount to the average of the three lowest daily trading prices as reported on the OTCQB for the twelve trading days previous to the conversion date. | |
On February 25, 2015, the Company issued a promissory note in the original principal amount of $52,500 to a lender. The Note matures on February 25, 2016 and carries an interest rate of 8% per annum. The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 40% discount to the lowest trading price as reported on the OTCQB for the fifteen trading days previous to the conversion date. | |
On March 6, 2015, the Company entered into a Note Purchase Agreement in respect of a credit line and associated convertible debenture in the original principal amount up to $220,000. As of March 6, 2015, the Company recorded a $55,000 draw down and consideration in respect of the credit line. The Debenture matures on March 6, 2016 and bears interest at the rate of 10% per annum. The Debenture, together with all interest as accrued, is convertible into shares of the Company’s common stock at a price equal to the lower of $.10 or 58% of the lowest trading price of the Company’s common stock during the 20 previous consecutive trading days. The Note Purchase and the Debenture contain representations, warranties, conditions, restrictions, and covenants of the Company that are customary in such transactions with smaller companies. |
NOTE_6_DERIVATIVE_LIABILITY
NOTE 6 - DERIVATIVE LIABILITY | 3 Months Ended |
Mar. 31, 2015 | |
Notes to Financial Statements | |
NOTE 6 - DERIVATIVE LIABILITY | NOTE 6 - DERIVATIVE LIABILITY |
Due to the convertible notes described in Note 5 above, it was determined at March 31, 2015 that there was a derivative liability associated with these notes. The amount of the derivative liability at March 31, 2015 was $269,930, which is reported on the balance sheet. The Company also recorded a loss on the change in the fair value of the derivative liability of $44,456 on the statement of operations for the three months ended March 31, 2015. |
NOTE_7_SUBSEQUENT_EVENTS
NOTE 7 - SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2015 | |
Subsequent Events [Abstract] | |
NOTE 7 - SUBSEQUENT EVENTS | NOTE 7 - SUBSEQUENT EVENTS |
The Company has evaluated subsequent events for the period of March 31, 2015 through the date the financial statements were issued, and concluded there were no events or transactions occurring during this period that required recognition or disclosure in its financial statements. |
NOTE_2_GOING_CONCERN_CONSIDERA1
NOTE 2 - GOING CONCERN CONSIDERATIONS (Details Narrative) (USD $) | Dec. 31, 2014 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operating losses | $14,581,637 |
Accumulated deficit | $15,872,309 |
NOTE_3_STOCK_BASED_COMPENSATIO1
NOTE 3 - STOCK BASED COMPENSATION (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Equity [Abstract] | ||
Common stock issued for services, shares | 6,000,000 | |
Common stock issued for services, value | $1,050,000 | $965,000 |
NOTE_4_RELATED_PARTY_TRANSACTI1
NOTE 4 - RELATED PARTY TRANSACTIONS (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Related Party Transactions [Abstract] | ||
Payments on notes payable, related parties | $22,500 | |
Accounts payable and accried liabilities, related parties | $1,266 | ($76,418) |
NOTE_5_CONVERTIBLE_NOTES_PAYAB1
NOTE 5 - CONVERTIBLE NOTES PAYABLE (Details Narrative) (USD $) | 3 Months Ended | ||
Mar. 15, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Convertible debenture | $14,527 | $0 | |
Promissory Note issued February 10, 2015 | |||
Convertible promissory note | 33,000 | ||
Interest rate | 8.00% | ||
Terms of conversion | The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 45% discount to the average of the three lowest daily trading prices as reported on the OTCQB for the twelve trading days previous to the conversion date. | ||
Maturity date | 15-Nov-12 | ||
Promissory Note issued February 25, 2015 | |||
Convertible promissory note | 52,500 | ||
Interest rate | 8.00% | ||
Terms of conversion | The Note shall at the maturity date, be due and payable in full unless converted partially or in its entirety upon the election of the lender into fully paid and non-assessable shares of common stock of the Company at a 40% discount to the lowest trading price as reported on the OTCQB for the fifteen trading days previous to the conversion date. | ||
Maturity date | 16-Feb-25 | ||
Note Purchase Agreement March 6, 2015 | |||
Interest rate | 10.00% | ||
Terms of conversion | The Debenture, together with all interest as accrued, is convertible into shares of the Company’s common stock at a price equal to the lower of $.10 or 58% of the lowest trading price of the Company’s common stock during the 20 previous consecutive trading days. The Note Purchase and the Debenture contain representations, warranties, conditions, restrictions, and covenants of the Company that are customary in such transactions with smaller companies. | ||
Convertible debenture | 220,000 | ||
Draw down and consideration | $55,000 | ||
Maturity date | 16-Mar-06 |
NOTE_6_DERIVATIVE_LIABILITY_De
NOTE 6 - DERIVATIVE LIABILITY (Details Narrative) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Notes to Financial Statements | ||
Derivative liability | $269,930 | |
Loss on change in fair value of derivative liability | ($44,456) | $0 |