Smartchase (SCHS) 10-Q 3 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	SmartChase Corp.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		33,942,563
Amendment Flag	false
Entity Central Index Key	1,390,533
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Balance Sheets

Balance Sheets - USD ($)	Mar. 31, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 29,006	$ 118,743
Prepaid expenses	8,625	10,500
TOTAL ASSETS	37,631	129,243
CURRENT LIABILITIES
Accounts payable	6,330	5,211
Accounts payable – related party		25,728
Related party loan		45,779
	6,330	76,718
Convertible Debentures (net of debt discount)	160,714	142,857
Interest Payable	8,750
TOTAL LIABILITIES	175,794	219,575
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock; $0.001 par value; 195,000,000 shares authorized; 33,942,563 shares issued and outstanding as of March 31, 2016 and December 31, 2015	33,943	33,943
Additional paid-in capital	851,313	851,313
Accumulated deficit	(1,023,419)	(975,588)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)	(138,163)	(90,332)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 37,631	$ 129,243

Balance Sheets (Parentheticals)

Balance Sheets (Parentheticals) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	195,000,000	195,000,000
Common stock, shares issued	33,942,563	33,942,563
Common stock, shares outstanding	33,942,563	33,942,563

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
OPERATING EXPENSES
General and administrative	$ 11,940	$ 5,567
Transfer Agent and filing fees	4,634	1,910
Professional fees	4,650	3,500
Total Operating Expenses	21,224	10,977
LOSS FROM OPERATIONS	(21,224)	(10,977)
OTHER EXPENSES:
Financing expense	(26,607)
Foreign currency transaction gain (loss)		1,911
	(26,607)	1,911
NET (LOSS) GAIN	$ (47,831)	$ (9,067)
NET (LOSS) PER SHARE - BASIC AND DILUTED (in Dollars per share)	$ 0	$ 0
WEIGHTED AVERAGE COMMON EQUIVALENT
SHARES OUTSTANDING - BASIC AND DILUTED (in Shares)	33,942,563	21,442,563

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOW FROM OPERATING ACTIVITIES:
Net (loss) gain	$ (47,831)	$ (9,067)
In operating activities:
Amortization of debt discount	17,857
Changes in operating assets and liabilities:
(Increase) decrease in prepaid	1,875
Increase (decrease) in interest payable	8,750
Increase (decrease) in accounts payable and accrued expenses	(24,609)	1,925
Net cash used in operating activities	(43,958)	(7,142)
CASH FLOW FROM FINANCING ACTIVITIES:
Advances from (repayment to) related party	(45,779)	9,841
Net cash provided by financing activities	(45,779)	9,841
NET INCREASE (DECREASE) IN CASH	(89,737)	2,699
CASH AND CASH EQUIVALENTS, Beginning of period	118,743	744
CASH AND CASH EQUIVALENTS, End of period	$ 29,006	$ 3,443

NOTE 1 - CONDENSED FINANCIAL ST

NOTE 1 - CONDENSED FINANCIAL STATEMENTS	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1 - CONDENSED FINANCIAL STATEMENTS The accompanying condensed financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations and cash flows at March 31, 2016 and for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2015 audited financial statements. The results of operations for the period ended March 31, 2016 are not necessarily indicative of the operating results for the full year.

NOTE 2 - GOING CONCERN

NOTE 2 - GOING CONCERN	3 Months Ended
	Mar. 31, 2016
Going Concern Note [Abstract]
Going Concern Note	NOTE 2 - GOING CONCERN These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of March 31, 2016, the Company has accumulated operating losses of approximately $1,023,419. The Company's ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to achieve and maintain profitable operations. Management plans to raise equity capital to finance the operating and capital requirements of the Company. While the Company is putting forth its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.

NOTE 3 - SIGNIFICANT ACCOUNTING

NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES The Company's financial statements are prepared using the accrual method of accounting. The Company has elected a December 31 year-end. Basis of Accounting The basis is United States generally accepted accounting principles. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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. Revenue Recognition The Company recognizes revenue on an accrual basis. Revenue is generally realized or realizable and earned when all of the following criteria are met: 1) persuasive evidence of an arrangement exists between the Company and our customer(s); 2) services have been rendered; 3) our price to our customer is fixed or determinable; and 4) collectability is reasonably assured. Income taxes The Company accounts for its income taxes in accordance with FASB ASC Topic 740-10, "Income Taxes", which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry-forwards. 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 income in the period that includes the enactment date. Net Loss Per Common Share FASB ASC Topic 260-10, "Earnings per Share", requires presentation of "basic" and "diluted" earnings per share on the face of the statements of operations for all entities with complex capital structures. Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti- dilutive effect on diluted earnings per share are excluded from the calculation. Stock-Based Compensation The Company has adopted FASB ASC Topic 718-10, "Compensation- Stock Compensation" ("ASC 718-10") which requires the measurement and recognition of compensation expense for all stock-based payment awards made to employees and directors. Under the fair value recognition provisions of ASC 718-10, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period. Determining the fair value of stock-based awards at the grant date requires considerable judgment, including estimating the expected future volatility of our stock price, estimating the expected length of term of granted options and selecting the appropriate risk-free rate. There is no established trading market for our stock. Financial instruments The fair value of the Company's financial assets and financial liabilities approximate their carrying values due to the immediate or short-term maturity of these financial instruments. Cash and Cash Equivalents The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. Management does not believe the Company is exposed to significant credit risk. Management, as well, does not believe the Company is exposed to significant interest rate and foreign currency fluctuation risks during the period presented in these financial statements. As at March 31, 2016 and December 31, 2015, the Company has cash equivalents in the amount of $ nil and $ nil that are over the federally insured limit. Foreign Currency Translation The Company's functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars and management has adopted FASB ASC topic 830 " Foreign Currency Matters

NOTE 4 - RELATED PARTY TRANSACT

NOTE 4 - RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 4 – RELATED PARTY TRANSACTIONS As of March 31, 2016, nil is owed to related parties (December 31, 2015 - $71,507). During the quarter, $45,779 was repaid to the Company's President for loans and payments made directly to vendors on behalf of the Company and $25,728 was paid to a company controlled by the Company's Chief Executive Officer for professional services rendered.

NOTE 5 - STOCKHOLDER'S EQUITY

NOTE 5 - STOCKHOLDER'S EQUITY	3 Months Ended
	Mar. 31, 2016
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 5 – STOCKHOLDER'S EQUITY As of March 31, 2016 there were 33,942,563 shares of common stock issued and outstanding and nil shares of preferred stock issued and outstanding. During the year ended December 31, 2014, an aggregate of 62,500 preferred shares of stock were converted into 12,500,000 shares of common stock at a conversion rate of 200:1.

NOTE 6 - RECENT ACCOUNTING PRON

NOTE 6 - RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2016
Policy Text Block [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	NOTE 6 – RECENT ACCOUNTING PRONOUNCEMENTS During the year ended December 31, 2015, the Company has elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. The adoption of this ASU allows the Company to remove the inception to date information and all references to development stage.

NOTE 7 - CONVERTIBLE NOTE PAYAB

NOTE 7 - CONVERTIBLE NOTE PAYABLE	3 Months Ended
	Mar. 31, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	NOTE 7 - CONVERTIBLE NOTE PAYABLE On December 31, 2015, the Company sold convertible debentures at a price of $1,000 per convertible debenture to a related party for an aggregate of $250,000 (the "Convertible Debenture"). The debentures have a term of eighteen (18) months from December 31, 2015 (the "Maturity Date"), bear interest at a rate of 14% per annum, payable on the Maturity Date, shall be converted into common shares of the Corporation ("Debenture Shares") at the following conversion prices: $0.07 per share within six (6) months of issuance, $0.10 per share between six (6) to twelve (12) months, and $0.15 per share between twelve (12) to eighteen (18) months. During the fiscal year ended December 31, 2015, the Company accounted for the beneficial conversion feature of the Convertible Debenture in the amount of $107,143, which was recorded as a discount and amortized over the life of the Convertible Debenture.

NOTE 8 - RECLASSIFICATION OF PR

NOTE 8 - RECLASSIFICATION OF PRIOR YEAR PRESENTATION	3 Months Ended
	Mar. 31, 2016
Disclosure Text Block [Abstract]
Reclassifications [Text Block]	NOTE 8 – RECLASSIFICATION OF PRIOR YEAR PRESENTATION Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. At the conclusion of the first quarter interim review of fiscal 2015, the Company concluded that it was appropriate to reclassify certain accounting and administrative fees to general & administrative fees. Previously, such fees had been classified as professional fees. Accordingly, the Company has revised the classification

NOTE 9 - SUBSEQUENT EVENTS

NOTE 9 - SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 9 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date the financial statements are issued and believes there are no events to disclose.

NOTE 2 - GOING CONCERN (Details

NOTE 2 - GOING CONCERN (Details)	Mar. 31, 2016USD ($)
Going Concern Note [Abstract]
Cumulative Earnings (Deficit)	$ 1,023,419

NOTE 4 - RELATED PARTY TRANSA16

NOTE 4 - RELATED PARTY TRANSACTIONS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Related Party Transactions [Abstract]
Due to Related Parties		$ 71,507
Repayments of Related Party Debt	$ 45,779
Accounts Payable, Related Parties	$ 25,728

NOTE 5 - STOCKHOLDER'S EQUITY (

NOTE 5 - STOCKHOLDER'S EQUITY (Details) - shares	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
Common Stock, Shares, Outstanding	33,942,563	33,942,563
Preferred Stock, Pre-Conversion			62,500
Convertible Preferred Stock, Shares Issued upon Conversion			12,500,000
Preferred Share, Conversion Ratio			200

NOTE 7 - CONVERTIBLE NOTE PAY18

NOTE 7 - CONVERTIBLE NOTE PAYABLE (Details)	1 Months Ended	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2015USD ($)
Debt Disclosure [Abstract]
Proceeds from Convertible Debt	$ 250,000
Debt Instrument, Interest Rate, Effective Percentage	14.00%	14.00%
SharePriceMinimum	$ 0.07	$ 0.07
SharePriceMedium	0.10	0.10
MaximumSharePrice	$ 0.15	0.15
Debt Instrument, Convertible, Beneficial Conversion Feature		$ 107,143