Elray Resources (ELRA) 10-Q 17 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 11, 2017
Document And Entity Information
Entity Registrant Name	ELRAY RESOURCES, INC.
Entity Central Index Key	1,402,371
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
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		1,411,474,031
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 29,962	$ 18,297
Accounts receivable - related parties	41,334	31,352
Note receivable - related party	15,195	15,195
Prepaid expenses	14,357	13,592
Total current assets	100,848	78,436
Rent deposit	7,535	7,535
Other asset	5,000	5,000
Total assets	113,383	90,971
Current liabilities:
Accounts payable and accrued liabilities	1,561,951	1,529,746
Accounts payable - related parties	2,024,952	1,742,315
Advances from shareholders	59,391	59,391
Other payable – related party	34,824
Settlement payable	2,162,159	2,162,159
Notes payable	102,164	163,350
Convertible notes payable, net of discounts	3,180,296	3,135,011
Derivative liabilities - note conversion feature	438,068	1,173,213
Total liabilities	9,563,805	9,965,185
Commitments and contingencies
Shareholders' deficit:
Common stock, par value $0.001, 2,500,000,000 shares authorized, 1,284,083,093 and 1,222,967,493 shares issued and outstanding, respectively	1,284,083	1,222,967
Additional paid-in capital	16,679,183	16,735,050
Subscription receivable	(75,672)	(75,672)
Accumulated deficit	(27,537,099)	(27,955,642)
Total shareholders' deficit	(9,450,422)	(9,874,214)
Total liabilities and shareholders' deficit	113,383	90,971
Series A Convertible Preferred Stock [Member]
Shareholders' deficit:
Preferred stock
Series B Convertible Preferred Stock [Member]
Shareholders' deficit:
Preferred stock	192,000	192,000
Series C Convertible Preferred Stock [Member]
Shareholders' deficit:
Preferred stock	$ 7,083	$ 7,083

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Common Stock; Par Value	$ 0.001	$ 0.001
Common Stock; Shares Authorized	2,500,000,000	2,500,000,000
Common Stock; Shares Issued	1,284,083,093	1,222,967,493
Common Stock; Shares Outstanding	1,284,083,093	1,222,967,493
Series A Convertible Preferred Stock [Member]
Preferred Stock; Par Value	$ 0.001	$ 0.001
Preferred Stock; Shares Authorized	300,000,000	300,000,000
Preferred Stock; Shares Issued	0	0
Preferred Stock; Shares Outstanding	0	0
Series B Convertible Preferred Stock [Member]
Preferred Stock; Par Value	$ 0.001	$ 0.001
Preferred Stock; Shares Authorized	280,000,000	280,000,000
Preferred Stock; Shares Issued	192,000,000	192,000,000
Preferred Stock; Shares Outstanding	192,000,000	192,000,000
Series C Convertible Preferred Stock [Member]
Preferred Stock; Par Value	$ 0.001	$ 0.001
Preferred Stock; Shares Authorized	10,000,000	10,000,000
Preferred Stock; Shares Issued	7,083,333	7,083,333
Preferred Stock; Shares Outstanding	7,083,333	7,083,333

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Consolidated Statements Of Operations
Revenues - related parties	$ 156,334	$ 1,376,932
Operating expenses:
Software usage costs		1,156,255
General and administrative	262,934	385,202
Total operating expenses	262,934	1,541,457
Loss from operations	(106,600)	(164,525)
Other income (expense):
Interest expense	(207,809)	(226,255)
Unrealized gain on change in fair value of derivative liabilities – note conversion feature	732,952	186,963
Gain (loss) on settlement of accounts payable and notes payable		(5,736)
Total other income (expense)	525,143	(45,028)
Net income (loss)	$ 418,543	$ (209,553)
Net earnings (loss) per common share - basic	$ 0	$ 0
Net earnings (loss) per common share - diluted	$ 0	$ 0
Weighted average number of common shares outstanding - basic	1,235,190,613	99,026,812
Weighted average number of common shares outstanding - diluted	37,415,912,975	99,026,812

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income (loss)	$ 418,543	$ (209,553)
Adjustments to reconcile net loss to cash provided by operations activities:
Amortization of debt discount	47,478	187,853
Unrealized gain on derivative liabilities-note conversion feature	(732,952)	(186,963)
Loss on settlement of accounts payable and notes payable		5,736
Changes in operating assets and liabilities:
Accounts receivable		(854,032)
Accounts receivable - related parties	(9,982)
Prepaid expense	(765)	102
Accounts payable and accrued liabilities	33,068	10,267
Accounts payable - related parties	282,637	1,180,677
Net cash provided by operating activities	38,027	134,087
Cash flows from financing activities:
Proceeds from short-term note payable – related party	34,824
Repayment of short-term notes payable	(61,186)	(55,357)
Net cash provided by (used in) financing activities	(26,362)	(55,357)
Net change in cash and cash equivalents	11,665	77,730
Cash and cash equivalents at beginning of period	18,297	111,133
Cash and cash equivalents at end of period	29,962	189,863
Supplemental disclosure of cash flow information:
Cash paid for interest	18,567
Cash paid for income taxes
Non-cash investing and financing activities:
Common stock issued for conversion of debt	3,056
Common stock issued to acquire other asset
Debt discount - derivative liabilities on notes payable conversion feature

BASIS OF PRESENTATION AND ACCOU

BASIS OF PRESENTATION AND ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 1 - BASIS OF PRESENTATION AND ACCOUNTING POLICIES	Elray Resources, Inc. ("Elray" or the "Company"), a Nevada Company formed on December 13, 2006, has been providing marketing and support for online gaming operations. The Company maintains its administrative office in Australia and its gaming operations is currently targeting Asian market. The accompanying unaudited interim consolidated financial statements of Elray Resources, Inc. (“Elray” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (“SEC”), and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s annual report for the year ended December 31, 2016 on Form 10-K filed on April 12, 2017. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the consolidated financial statements which would substantially duplicate the disclosure contained in the audited consolidated financial statements for the most recent fiscal year ended December 31, 2016 have been omitted. 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 the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates. Reclassification Certain prior year amounts have been reclassified for consistency with the current period presentation. Cash and Cash Equivalents The Company considers all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents. Allowance for doubtful accounts The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. As of March 31, 2017 and December 31, 2016, allowances for doubtful accounts was $5,521. Long Lived Assets Long-lived assets to be held and used or disposed of other than by sale are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When required, impairment losses on assets to be held and used or disposed of other than by sale are recognized based on the fair value of the asset. Long-lived assets to be disposed of by sale are reported at the lower of its carrying amount or fair value less cost to sell. Intangible Assets Intangible assets consist of expenditures for domain names and certain intellectual properties. The intangible assets are recorded at cost and amortized over its estimated useful life of 3 years. Derivative Instruments Derivatives are measured at their fair value on the balance sheet. In determining the appropriate fair value, the Company uses the Black-Scholes-Merton option pricing model. Changes in fair value are recorded in the statement of operations. Debt Discount Debt discount is amortized over the term of the related debt using the effective interest rate method. Revenues Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. Prior to July 31, 2016, the Company recorded revenue at gross charge to its customers as the Company was the principal of the transactions. Started from August 1, 2016, due to compliance and legal environment concern, the Company modified its business model and changes its role to be an agent. Therefore, revenues recorded after August 1, 2016 was presented net with software usage costs. Income Taxes Deferred income taxes reflect the net effect of (a) temporary differences between the carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of operations because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carry forward has been recognized, as it is not deemed likely to be realized. Earnings (Loss) Per Common Share Basic net earnings (loss) per common share are computed by dividing net earnings (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net earnings (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method. The dilutive effect of outstanding convertible securities is reflected in diluted earnings per share by application of the if-converted method. The following is a reconciliation of basic and diluted earnings (loss) per common share for 2017 and 2016: For the Three Months Ended March 31, 2017 2016 Basic earnings (loss) per common share Numerator: Net income (loss) available to common shareholders $ 418,543 $ (209,553 ) Denominator: Weighted average common shares outstanding 1,235,190,613 99,026,812 Basic earnings (loss) per common share $ 0.00 $ (0.00 ) Diluted earnings (loss) per common share Numerator: Net income (loss) available to common shareholders $ 418,543 $ (209,553 ) Add convertible debt interest 140,233 - Net income (loss) available to common shareholders $ 558,776 $ (209,553 ) Denominator: Weighted average common shares outstanding 1,235,190,613 99,026,812 Preferred shares 2,362 - Convertible debt 36,180,720,000 - Adjusted weighted average common shares outstanding 37,415,912,975 99,026,812 Diluted earnings (loss) per common share $ 0.00 $ (0.00 ) For the three months ended March 31, 2016 fully diluted earnings per share excludes notes convertible to 12,681,208,148 common shares and preferred stock convertible to 2,362 common shares, because their inclusion would be anti-dilutive. Subsequent Events Elray evaluated subsequent events through the date these financial statements were issued for disclosure purposes. Recent Accounting Pronouncements In May 2014, a pronouncement was issued that creates common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards. The new guidance supersedes most preexisting revenue recognition guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with an option to adopt the standard one year earlier. The new standard is to be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact of the new pronouncement on its financial statements. In February 2016, a pronouncement was issued that creates new accounting and reporting guidelines for leasing arrangements. The new guidance requires organizations that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The guidance also requires new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, with early application permitted. The new standard is to be applied using a modified retrospective approach. The Company is currently evaluating the impact of the new pronouncement on its financial statements. Elray’s management does not believe that any other recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 2 - GOING CONCERN	The accompanying unaudited consolidated financial statements of Elray have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company had a negative working capital of $9,462,957 at March 31, 2017. The factor raises substantial doubt regarding the Company’s ability to continue as a going concern. Without realization of additional capital, it would be unlikely for Elray to continue as a going concern. Elray's management plans on raising cash from public or private debt, on an as needed basis, and in the longer term, revenues from the gambling business. Elray's ability to continue as a going concern is dependent on these additional cash financings, and, ultimately, upon achieving profitable operations through the development of its gambling business.

SETTLEMENT PAYABLE

SETTLEMENT PAYABLE	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Note 3 - SETTLEMENT PAYABLE	On December 20, 2013, the Company entered into a settlement agreement with Tarpon Bay Partners LLC (“Tarpon”) whereby Tarpon acquired certain notes and accounts payable against the Company in the amount of $2,656,214. Pursuant to the agreement, the Company and Tarpon submitted the settlement agreement to the Circuit Court of the Second Judicial Circuit, Leon County, Florida for a hearing on the fairness of the agreement and the exemption from registration under the Securities Act of 1933 for the shares that will be issued to Tarpon for resale (“Settlement Shares”). 75% of the proceeds less all applicable fees and charges from the resale of the Settlement Shares will be remitted to the original claim holders of the Company (“Remittance Amount”). The Company agreed to issue sufficient shares to generate proceeds such that the aggregate Remittance Amount equals $2,656,214. Additionally, the Company agreed to issue a convertible note of $132,000, maturing in 6 months and convertible to the Company’s common stock at a 50% of the lowest closing bid price for the 20 days prior to the conversion. The settlement agreement was effective on January 27, 2014 when the court granted approval. During the three months ended March 31, 2016, the Company issued Tarpon 5,136,000 common shares. Net proceeds from the sales amounted to $933 was remitted to the original claim holders. As of March 31, 2016, the Company has settlement payable of $2,162,159.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 4 - NOTES PAYABLE	Notes payable Notes payable at March 31, 2017 and December 31, 2016 consisted of the following: Final Maturity Interest Rate March 31, 2017 December 31, 2016 Morchester International Limited July 14,2012 15% $ 35,429 $ 35,429 Morchester International Limited July 14,2012 8% 10,000 10,000 PowerUp Lending Group, Ltd February 22, 2017 33% - 13,934 Auctus Private Equity Fund, LLC June 27, 2017 N/A 10,303 25,758 PowerUp Lending Group, Ltd May 6,2017 46% 23,921 42,999 PowerUp Lending Group, Ltd July 20, 2017 46% 22,511 35,230 Total $ 102,164 $ 163,350 On December 9, 2011, Elray entered into an Amended Splitrock Agreement whereby the Company acquired certain assets and liabilities of Splitrock. As part of the liabilities assumed in terms of the Amended Splitrock Agreement, the Company assumed notes payable of $292,929 bearing interest of 8% or 15% per annum. On January 27, 2014, the court granted an approval of the settlement agreement with Tarpon whereby the Company would issue shares to Tarpon for resale to pay off certain liabilities. As a result, principal of $247,500 and associated accrued interest acquired by Tarpon were reclassified to settlement payable. The remaining notes issued to Morchester International Limited not purchased by Tarpon are currently in default. The default had no effect on the notes’ interest rate. On May 6, 2016, the Company entered into a third loan agreement with PowerUp for $60,000. Total repayment amount for the loan is $76,000. The loan is payable daily at $360 and secured by all of the Company’s assets. As of March 31, 2017, the loan has been paid off. On June 27, 2016, the Company reached a settlement agreement with Auctus. Pursuant to the settlement agreement, the Company agreed to pay $61,819 in full and final settlement of all outstanding convertible notes and accrued interest. During the three months ended March 31, 2017, the Company made payments totaling $15,455. On July 28, 2016, the Company entered into a fourth loan agreement with PowerUp for $75,000. Total repayment amount for the loan is $95,250. The loan is payable daily at $451 and secured by all of the Company’s assets. As of March 31, 2017, balance of this note was $23,921. On September 14, 2016, the Company entered into a fifth loan agreement with PowerUp for $50,000. Total repayment amount for the loan is $63,500. The loan is payable daily at $301 and secured by all of the Company’s assets. As of March 31, 2017, balance of this note was $22,511. Convertible notes payable Convertible notes payable, at March 31, 2017 and December 31, 2016, consisted of the following: Interest Rate March 31, 2017 December 31, 2016 JSJ Investments, Inc. 10%~12% $ 128,853 $ 128,853 LG Capital Funding, LLC 8% 6,514 8,707 WHC Capital, LLC 12% 116,936 116,936 Beaufort Capital Partners, LLC 12% 10,966 10,966 Tangiers Investment Group, LLC 0%~10% 48,394 48,394 GSM Fund Management, LLC 12% 38,442 38,442 Microcap Equity Group, LLC 10% 18,892 18,892 Virtual Technology Group, Ltd 24% 481,500 481,500 Gold Globe Investments Ltd 24% 2,324,000 2,324,000 Vista Capital Investments, LLC. 12% 5,800 5,800 Subtotal 3,180,296 3,182,489 Debt discount - (47,478 ) Total $ 3,180,296 $ 3,135,011 JSJ Investments, Inc. On May 31, 2013, the Company entered into a convertible promissory note with JSJ Investments, Inc. (“JSJ”) for $50,000. The note matured on December 2, 2013. The note holder has the option to convert the note to common shares in the Company at a discount of 50% of the average closing price over the last 120 days prior to conversion, or the average closing price over the last seven days prior to conversion. As of March 31, 2017, the remaining principal of $10,670 has not been converted. The note is currently in default. The default had no effect on the note’s interest rate. On August 21, 2014, the Company entered into a convertible promissory note with JSJ for $50,000 cash. The note matured on February 21, 2015. Upon the maturity, the note has a cash redemption premium of 150% of the principal amount. The note is convertible to the Company’s common shares at a discount of 60% of the average of the three lowest bids on the twenty days before the date this note is executed, or 60% of the average of the three lowest bids during the twenty trading days preceding the delivery of any conversion notice, whichever is lower. The note is currently in default and has a default interest rate of 20% per annum. As of March 31, 2017, balance of this note was $45,560. On January 20, 2015, the Company entered into a convertible promissory note with JSJ for $40,000. The note bears interest at 12% and matured on July 20, 2015. Upon the maturity, the note has a cash redemption premium of 150% of the principal amount. The note is convertible to the Company’s common shares at 40% of the lowest trading price on the twenty days before the date this note is executed, or 40% of the lowest trading price during the twenty trading days preceding the delivery of any conversion notice, whichever is lower. The note is currently in default. The default had no effect on the note’s interest rate. As of March 31, 2017, balance of this note was $40,000. On January 20, 2015, the Company entered into a convertible promissory note with JSJ for $60,000, which was issued in exchange for a portion of the promissory note issued to VTG on January 23, 2014. The note bears interest at 12% and matured on January 20, 2015. JSJ has the right to convert the balance outstanding into the Company’s common stock at a rate equal to 50% of the lowest trading price on the twenty days before the date this note is executed, or 50% of the lowest trading price during the twenty trading days preceding the delivery of any conversion notice, whichever is lower. The Company recorded a loss on extinguishment of debt of $441 related to the exchange. The note is currently in default. The default had no effect on the note’s interest rate. As of March 31, 2017, balance of this note was $32,623. LG Capital Funding, LLC On November 10, 2014, the Company entered into a convertible promissory note with LG for $37,000. The note matured on November 10, 2015. LG has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 50% of the average lowest three trading prices during the fifteen trading days prior to the conversion date. During the three months ended March 31, 2017, the Company issued 61,115,600 shares of common stock for the conversion of this note in the amount of $2,193 and accrued interest of $863. As of March 31, 2017, balance of this note was $6,514. The note is currently in default and has a default interest rate of 24% per annum. WHC Capital, LLC On September 23, 2014, the Company entered into a convertible promissory note with WHC Capital, LLC (“WHC”) for $75,000. The note bears interest at 12% and matured on September 23, 2015. WHC has the right at any time during the period beginning on the date of this note to convert the balance outstanding into the Company’s common stock at a rate equal to 50% of the lowest intra-day trading price during the fifteen trading days prior to the conversion date. On September 23, 2015, the Company failed to repay the outstanding balance of this note and a penalty of $41,978 was added to the outstanding balance pursuant to the note terms. As of March 31, 2017, balance of this note was $116,936. This note is currently in default and has a default interest rate of 22% per annum. Beaufort Capital Partners, LLC On September 2, 2014, the Company entered into a convertible promissory note with Beaufort Capital Partners, LLC (“Beaufort”) for $21,000. The note matured on March 2, 2015. Beaufort has the right after the maturity date to convert the balance outstanding into the Company’s common stock at a rate equal to 50% of the lowest trading prices during the fifteen trading days prior to the conversion date. Under certain conditions, the conversion price would be reset to $0.0001 or 65% off the lowest price of the previous five trading days. As of March 31, 2017, balance of this note was $10,966. This note is currently in default. The default had no effect on the note’s interest rate. Tangiers Investment Group, LLC On October 13, 2014, the Company entered into a convertible promissory note with Tangiers Investment Group LLC (“Tangiers”) for $55,000. The note matured on October 13, 2015. Tangiers has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 45% of the lowest trading prices during the twenty trading days prior to the conversion date. As of March 31, 2017, balance of this note was $15,393. This note is currently and has a default interest rate of 20% per annum. On October 13, 2014, the Company entered into a convertible promissory note with Tangiers for $33,000. The note bears interest at 10% and matured on October 13, 2015. Tangiers has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 45% of the lowest trading prices during the twenty trading days prior to the conversion date. This note is currently in default and has a default interest rate of 20% per annum. GSM Fund Management LLC On January 30, 2015, the Company entered into an assignment and modification agreement to assign $62,500 of the convertible promissory note of VTG dated January 23, 2014 to GSM Fund Management LLC (“GSM”). The note bears interest at 12% and matured on January 30, 2016. GSM has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 50% of the lowest closing bid price in the 15 trading days prior to the conversion date. The Company recorded a loss on extinguishment of debt of $52,364 related to the exchange. As of March 31, 2017, balance of this note was $38,442. The note is currently in default and has a default interest rate of 18%. Microcap Equity Group, LLC On February 23, 2015, the Company entered into a convertible promissory note with Microcap Equity Group LLC ("Microcap") for $20,000, which was issued in exchange for a portion of the promissory note issued to VTG on January 23, 2014. The note matured on January 23, 2017. Microcap has the right to convert the balance outstanding into the Company’s common stock at a rate equal to 40% of the lower of the lowest bid price during the thirty trading days prior to the conversion date, or the lowest bid price on the day that the converted shares are cleared for physical delivery. The Company recorded a loss on extinguishment of debt of $28,213 related to the exchange. As of March 31, 2017, balance of this note was $18,892. The note became in default on January 23, 2017. The default had no effect on the note’s interest rate. Virtual Technology Group, Ltd On January 23, 2014, the Company entered into a convertible promissory note with VTG for $1,500,000. VTG has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 100% of the average of the closing bid prices for the seven trading days prior to the conversion date when the Company’s shares are traded in the OTCQB or during the ten trading days prior to the conversion date when the Company’s shares are traded on another other exchange. On November 10, 2014, $50,000 of this note was replaced with a note issued to LG. On January 20, January 23 and January 30, 2015, $60,000, $20,000 and $62,500 of this note were replaced with notes issued to JSJ, Microcap and GSM. As of March 31, 2017, balance of this note was $481,500. The note became in default on January 23, 2017 and has a default interest rate of 24% per annum. Gold Globe Investments Ltd On January 23, 2014, the Company entered into a convertible promissory note with GGIL for $2,800,000. GGIL has the right after a period of 180 days to convert the balance outstanding into the Company’s common stock at a rate equal to 100% of the average of the lowest three trading prices during the seven trading days prior to the conversion date when the Company’s shares are traded in the OTCQB or during the ten trading days prior to the conversion date when the Company’s shares are traded on another exchange. On December 3, 2014, $45,000 of this note was replaced with a note issued to Tangiers. As of March 31, 2017, balance of this note was $2,324,000. The note became in default on January 23, 2017 and has a default interest rate of 24% per annum. Vista Capital Investments, LLC. On April 15, 2014, the Company entered into a convertible promissory note with Vista Capital Investments, LLC (“Vista”) for $250,000. The note has an original issuance discount of $25,000. The note matures 2 years from the date of each payment of the principal from Vista. In the event that the note remains unpaid at maturity date, the outstanding balance shall immediately increase to 120% of the outstanding balance. Vista has the right to convert the outstanding balance into the Company’s common stock at a rate equal to the lesser of $0.008 per share or 60% of the lowest trade occurring during the twenty-five consecutive trading days preceding the conversion date. Due to certain events that occurred during 2014, the conversion price has been reset to $0.005 per share or 50% of the lowest trade occurring during the twenty-five consecutive trading days preceding the conversion date. Pursuant to the agreement, if the conversion price calculated under this agreement is less than $0.01 per share, the principal amount outstanding shall increase by $10,000 (“Sub-Penny”). $25,000 net proceeds were received on April 23, 2014. The remaining fund of this note has not been received. As of March 31, 2017, balance of this note was $5,800 which matured on April 15, 2016. The note is currently in default. The default had no effect on the note’s interest rate. Debt Discount The table below presents the changes of the debt discount during the three months ended March 31, 2017: Amount December 31, 2016 $ 47,478 Amortization (47,478 ) March 31, 2017 $ - Loans from shareholders On September 5, 2008, Elmside Pty Ltd, a company related to a former director, agreed to an interest free loan of $55,991 to the Company on an as-needed basis to fund the business operations and expenses of the Company until December 9, 2011, the due date of the loan. The note is in default. As of March 31, 2017, the Company had advances of $3,400 from its officer. The advances form the officers are due on demand, unsecured with no interest.

DERIVATIVE LIABILITIES - NOTE C

DERIVATIVE LIABILITIES - NOTE CONVERSION FEATURE	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 5 - DERIVATIVE LIABILITIES - NOTE CONVERSION FEATURE	Due to the conversion features contained in the convertible notes issued, the actual number of shares of common stock that would be required if a conversion of the note as further described in Note 4 was made through the issuance of the Company’s common stock cannot be predicted, and the Company could be required to issue an amount of shares that may cause it to exceed its authorized share amount. As a result, the conversion feature requires derivative accounting treatment and will be bifurcated from the note and “marked to market” each reporting period through the income statement. The fair value of the conversion future of these notes was recognized as a derivative liability instrument and will be measured at fair value at each reporting period. The Company remeasured the fair value of the instrument as of March 31, 2017, and recorded an unrealized gain of $732,952 for the three months ended March 31, 2017. The Company determined the fair values of these liabilities using a Black-Scholes valuation model with the following assumptions: December 31, 2016 March 3, 2017 March 31, 2017 Stock price on measurement date $0.0001 $0.0001 $0.0001 Exercise price $0.00004~$0.00010 $0.00005 $0.00004~$0.00010 Discount rate 0.20%~0.36% 0.26% 0.40%~0.50% Expected volatility 265% 281% 282% Expected dividend yield 0.00% 0.00% 0.00% The following table provides a summary of the changes in fair value of the derivative financial instruments measured at fair value on a recurring basis using significant unobservable inputs: Fair value at December 31, 2016 $ 1,173,213 Change in fair value of derivative liabilities (732,952 ) Reclassification to equity (2,193 ) Fair value at March 31, 2017 $ 438,068

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 6 - COMMITMENTS AND CONTINGENCIES	Legal Proceedings From time to time, we may be party to litigation or other legal proceedings that we consider to be a part of the ordinary course of our business. We are not involved currently in legal proceedings that could reasonably be expected to have a material adverse effect on our business, prospects, financial condition or results of operations. We may become involved in material legal proceedings in the future. Commitments and Contingencies On July 1, 2013, the Company entered into a lease agreement for office space in Australia. The agreement, as amended, expires on October 31, 2019. Rent is approximately $42,000 per year and the Company paid a $7,535 security deposit. On September 28, 2016, the Company entered into a settlement agreement with the U.S. Security and Exchange Commission. Pursuant the agreement, the Company agreed to pay $50,000 civil penalties for failing to disclose the sale of unregistered equity securities and the existence of the related agreements. As of March 31, 2017, $17,500 payable related to this settlement was included in accounts payable and accrued liabilities on the balance sheet.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 7- RELATED PARTY TRANSACTIONS	Elmside Pty Ltd On September 5, 2008, Elmside Pty Ltd, a company related to a former director, agreed to an interest free loan to the Company on an as-needed basis to fund the business operations and expenses of the Company until December 9, 2011, the due date of the loan. As of March 31, 2017 and 2016, loans from Elmside, a shareholder, were $55,991. The loans are currently in default. Universal Technology Investments Limited On May 19, 2016, the Company’s chief executive officer became the sole director and shareholder of Universal Technology Investments Limited (“UTI”). For the three months ended March 31, 2017 and 2016, revenues from UTI were $0 and $1,376,932, respectively. Golden Matrix Group, Inc. On July 9, 2016, the Company entered into a loan agreement with Golden Matrix Group, Inc. (“GMGI”), a company controlled by Elray’s chief executive officer and one director. Pursuant to the agreement, the Company agreed to lend GMGI up to $20,000. The borrowings mature in 180 days and accrue interest at 5% per annum. GMGI agreed to assist the Company in developing social gaming technology. As of March 31, 2017, note receivable from GMGI was $15,195. Articulate Pty Ltd and Brian Goodman As of March 31, 2017 and December 31, 2016, the Company had accounts payable of $1,885,451 and $1,611,815, respectively, to its chief executive officer and Articulate Pty Ltd (“Articulate”), a company controlled by the Company’s chief executive officer, for consulting fees, reimbursement of expenses and compensation. On August 24, 2016, the Company entered into a strategic partnership agreement with Articulate. Pursuant to the agreement, Articulate will provide non-exclusive back office services to the Company’s clients. In exchange for the service, Elray agreed to pay $10,000 for each month Articulate provides services. Elray will receive 0.5% of the software usage fee paid by Elray’s clients through Articulate. As a result of the agreement with Articulate, the Company terminated its original agreements with UTI and became an agent that receives net commission from Articulate. For the three months ended 31, 2017 and 2016, revenues from Articulate were $156,334 and $0, respectively. As of March 31, 2017, receivable from Articulate for software usage fee was $41,334. On January 31, 2017, the Company entered into a Settlement Agreement with Articulate and UTI wherein it was agreed that an amount payable by the Company to Articulate in the amount of $1,372,907 would be offset against the same amount of the Company’s account receivable from UTI. The offset was made effective on December 31, 2016. Jay Goodman and Brett Goodman On May 15, 2013, the Company entered into an agreement with Jay Goodman, son of the Company’s chief executive officer, to provide consulting services assisting the Company with data segmentation, financial and statistical services. In consideration for such services, the Company pays $3,000 per month to Jay Goodman. As of March 31, 2017 and December 31, 2016 the Company had a $139,500 and $130,500 payable to Jay Goodman, respectively. On February 1, 2016, the Company entered into an agreement with Brett Goodman, another son of the Company’s chief executive officer, where Mr. Brett Goodman will provide consulting services assisting the Company with a project involving social gaming platform. Mr. Brett Goodman has been providing the Company services since 2015. During the three months ended March 31, 2017 and 2016, the Company paid $0 and $13,250 consulting fees to Mr. Brett Goodman, respectively. As of March 31, 2017 and 2016, there was no payable to Mr. Brett Goodman. Globaltech Software Services LLC The Company’s chief executive officer is a member of Globaltech Software Services LLC (“Globaltech”). As of December 31, 2016, the Company had receivable from Globaltech of $31,352. During the three months ended March 31, 2017, Globaltech paid $66,176. As of March 31, 2017, the Company had other payable to Globaltech of $34,824 for amount overpaid by Globaltech.

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 8 - EQUITY	Preferred Stock – Series A On May 3, 2012, the Company authorized the creation of 300,000,000 shares of Series A preferred stock. The Class A Preferred Series shares are convertible at a rate of 0.0000003 common shares for each Series A Preferred Share. As of March 31, 2017, there were no Series A Preferred Stock outstanding. Preferred Stock – Series B On July 1, 2012, the Company authorized the creation of 100,000,000 shares of Series B preferred stock. On September 24, 2012, the authorized Series B Preferred Stock was increased from 100,000,000 to 280,000,000. After a series of reverse stock splits, the Series B Preferred stock is convertible at a rate of 0.000000003 common stock for each Series B Preferred stock. On July 14, 2013, the Company entered into a 12-month consultancy agreement with VTG to assist the Company in developing marketing and supporting the technology of virtual online horse racing products and to provide the Company the exclusive use right to certain website domains. In consideration for such services and domains, the Company issued 192,000,000 Series B Preferred shares to VTG. The 192,000,000 Series B Preferred stock have been recorded at their estimated market value of $43,031. Preferred Stock – Series C On June 20, 2014, the Company authorized the creation of 10,000,000 shares of Series C preferred stock. The Series C preferred shares are convertible at a rate of 0.0003 common shares for each Series C Preferred Share. On September 18, 2014, the Company entered into an agreement to acquire a 25% interest in Global Tech Software Solutions LLC doing business as Golden Galaxy (“Golden Galaxy”) which operates online casinos. Under the terms of the purchase agreement, the Company will be entitled to 1% of the gross wagering generated by Golden Galaxy. In consideration for the purchase, the Company issued 5,000,000 shares of the Company’s Series C preferred stock in June 2015 and recorded $5,000 of other asset. On April 1, 2015, the Company terminated the agreement and stopped receiving 1% of the gross wagering generated by Golden Galaxy. On September 18, 2014, the Company entered into an agreement with Yangjiu Xie, owner of Asialink Treasure Limited (“ATL”). Pursuant to the agreement, the Company issued 2,083,333 shares of its Series C preferred stock as part of the consideration to acquire 49% of the outstanding shares of ATL in a series of transactions. These shares were recorded at their par value of $2,083 with a subscription receivable at the same amount. The Company has not received the certificate of ownership from ATL. Common Stock On December 29, 2015, the Company issued Tarpon 4,101,000 shares which were sold during the three months ended March 31, 2016. During the three months ended March 31, 2016, the Company issued Tarpon 5,136,000 shares of its common stock according to the settlement agreement discussed in Note 3. These shares were valued at $6,669 based on the market price on the issuance date. $933 net proceeds from the sale were used to pay the original creditors of the claims Tarpon acquired. The remaining $5,736 was recorded as loss on settlement. During the three months ended March 31, 2017, the Company issued 61,115,600 shares of common stock for the conversion of notes payable and accrued interest of $2,193 and $863, respectively. See Note 4.

CONCENTRATIONS

CONCENTRATIONS	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Note 9 - CONCENTRATIONS	The Company’s revenues for three months ended March 31, 2016 were from one related parties. The Company’s software usage cost for the three months ended March 31, 2016 was all related to charges pass through to Elray by an entity controlled by the Company’s chief executive officer. All of the software cost was related to fees pay to one vendor for online casino game contents. As of March 31, 2017, the Company’s only customer is Articulate, a related party.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTE 10 - SUBSEQUENT EVENTS	On April 27, 2017, the Company filed a certificate of Amendment with the Nevada Secretary of State (the "Nevada SOS") to increase authorized number of common stock from 1.5 billion shares to 2.5 billion. Subsequent to March 31, 2017, the Company issued 127,391,138 shares of common stock for conversion of $5,383 note principal and $922 interest.

BASIS OF PRESENTATION AND ACC16

BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
Basis Of Presentation And Accounting Policies Policies
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 the reported amounts of assets and liabilities at the date of the balance sheet. Actual results could differ from those estimates.
Reclassification	Certain prior year amounts have been reclassified for consistency with the current period presentation.
Cash and Cash Equivalent	The Company considers all highly liquid short-term investments purchased with an original maturity of three months or less to be cash equivalents.
Allowance for doubtful accounts	The allowance for doubtful accounts reflects our best estimate of probable losses inherent in the accounts receivable balance. The Company determines the allowance based on known troubled accounts, historical experience, and other currently available evidence. As of March 31, 2017 and December 31, 2016, allowances for doubtful accounts was $5,521.
Long Lived Assets	Long-lived assets to be held and used or disposed of other than by sale are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. When required, impairment losses on assets to be held and used or disposed of other than by sale are recognized based on the fair value of the asset. Long-lived assets to be disposed of by sale are reported at the lower of its carrying amount or fair value less cost to sell.
Intangible Assets	Intangible assets consist of expenditures for domain names and certain intellectual properties. The intangible assets are recorded at cost and amortized over its estimated useful life of 3 years.
Derivative Instruments	Derivatives are measured at their fair value on the balance sheet. In determining the appropriate fair value, the Company uses the Black-Scholes-Merton option pricing model. Changes in fair value are recorded in the statement of operations.
Debt Discount	Debt discount is amortized over the term of the related debt using the effective interest rate method.
Revenues	Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable, and collectability is probable. Prior to July 31, 2016, the Company recorded revenue at gross charge to its customers as the Company was the principal of the transactions. Started from August 1, 2016, due to compliance and legal environment concern, the Company modified its business model and changes its role to be an agent. Therefore, revenues recorded after August 1, 2016 was presented net with software usage costs.
Income Tax	Deferred income taxes reflect the net effect of (a) temporary differences between the carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carry forwards. No net provision for refundable Federal income tax has been made in the accompanying statement of operations because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carry forward has been recognized, as it is not deemed likely to be realized.
Earnings (Loss) Per Common Share	Basic net earnings (loss) per common share are computed by dividing net earnings (loss) available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted net earnings (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. In periods when losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents, because their inclusion would be anti-dilutive. The dilutive effect of outstanding stock options and warrants is reflected in diluted earnings per share by application of the treasury stock method. The dilutive effect of outstanding convertible securities is reflected in diluted earnings per share by application of the if-converted method. The following is a reconciliation of basic and diluted earnings (loss) per common share for 2017 and 2016: For the Three Months Ended March 31, 2017 2016 Basic earnings (loss) per common share Numerator: Net income (loss) available to common shareholders $ 418,543 $ (209,553 ) Denominator: Weighted average common shares outstanding 1,235,190,613 99,026,812 Basic earnings (loss) per common share $ 0.00 $ (0.00 ) Diluted earnings (loss) per common share Numerator: Net income (loss) available to common shareholders $ 418,543 $ (209,553 ) Add convertible debt interest 140,233 - Net income (loss) available to common shareholders $ 558,776 $ (209,553 ) Denominator: Weighted average common shares outstanding 1,235,190,613 99,026,812 Preferred shares 2,362 - Convertible debt 36,180,720,000 - Adjusted weighted average common shares outstanding 37,415,912,975 99,026,812 Diluted earnings (loss) per common share $ 0.00 $ (0.00 ) For the three months ended March 31, 2016 fully diluted earnings per share excludes notes convertible to 12,681,208,148 common shares and preferred stock convertible to 2,362 common shares, because their inclusion would be anti-dilutive.
Subsequent Events	Elray evaluated subsequent events through the date these financial statements were issued for disclosure purposes.
Recent Accounting Pronouncements	In May 2014, a pronouncement was issued that creates common revenue recognition guidance for U.S. GAAP and International Financial Reporting Standards. The new guidance supersedes most preexisting revenue recognition guidance. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, with an option to adopt the standard one year earlier. The new standard is to be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact of the new pronouncement on its financial statements. In February 2016, a pronouncement was issued that creates new accounting and reporting guidelines for leasing arrangements. The new guidance requires organizations that lease assets to recognize assets and liabilities on the balance sheet related to the rights and obligations created by those leases, regardless of whether they are classified as finance or operating leases. Consistent with current guidance, the recognition, measurement, and presentation of expenses and cash flows arising from a lease primarily will depend on its classification as a finance or operating lease. The guidance also requires new disclosures to help financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, with early application permitted. The new standard is to be applied using a modified retrospective approach. The Company is currently evaluating the impact of the new pronouncement on its financial statements. Elray’s management does not believe that any other recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

SUMMARY OF ACCOUNTING POLICIES

SUMMARY OF ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2017
Summary Of Accounting Policies Tables
Reconciliation of basic and diluted earnings (loss) per common share	For the Three Months Ended March 31, 2017 2016 Basic earnings (loss) per common share Numerator: Net income (loss) available to common shareholders $ 418,543 $ (209,553 ) Denominator: Weighted average common shares outstanding 1,235,190,613 99,026,812 Basic earnings (loss) per common share $ 0.00 $ (0.00 ) Diluted earnings (loss) per common share Numerator: Net income (loss) available to common shareholders $ 418,543 $ (209,553 ) Add convertible debt interest 140,233 - Net income (loss) available to common shareholders $ 558,776 $ (209,553 ) Denominator: Weighted average common shares outstanding 1,235,190,613 99,026,812 Preferred shares 2,362 - Convertible debt 36,180,720,000 - Adjusted weighted average common shares outstanding 37,415,912,975 99,026,812 Diluted earnings (loss) per common share $ 0.00 $ (0.00 )

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Payable Tables
Notes Payable	Final Maturity Interest Rate March 31, 2017 December 31, 2016 Morchester International Limited July 14,2012 15% $ 35,429 $ 35,429 Morchester International Limited July 14,2012 8% 10,000 10,000 PowerUp Lending Group, Ltd February 22, 2017 33% - 13,934 Auctus Private Equity Fund, LLC June 27, 2017 N/A 10,303 25,758 PowerUp Lending Group, Ltd May 6,2017 46% 23,921 42,999 PowerUp Lending Group, Ltd July 20, 2017 46% 22,511 35,230 Total $ 102,164 $ 163,350
Convertible Notes Payable	Interest Rate March 31, 2017 December 31, 2016 JSJ Investments, Inc. 10%~12% $ 128,853 $ 128,853 LG Capital Funding, LLC 8% 6,514 8,707 WHC Capital, LLC 12% 116,936 116,936 Beaufort Capital Partners, LLC 12% 10,966 10,966 Tangiers Investment Group, LLC 0%~10% 48,394 48,394 GSM Fund Management, LLC 12% 38,442 38,442 Microcap Equity Group, LLC 10% 18,892 18,892 Virtual Technology Group, Ltd 24% 481,500 481,500 Gold Globe Investments Ltd 24% 2,324,000 2,324,000 Vista Capital Investments, LLC. 12% 5,800 5,800 Subtotal 3,180,296 3,182,489 Debt discount - (47,478 ) Total $ 3,180,296 $ 3,135,011
Changes of debt discount	Amount December 31, 2016 $ 47,478 Amortization (47,478 ) March 31, 2017 $ -

DERIVATIVE LIABILITIES NOTE CON

DERIVATIVE LIABILITIES NOTE CONVERSION FEATURE (Tables)	3 Months Ended
	Mar. 31, 2017
Derivative Liabilities Note Conversion Feature Tables
Fair Value of the Liabilites using a Black-Scholes Valuation method	December 31, 2016 March 3, 2017 March 31, 2017 Stock price on measurement date $0.0001 $0.0001 $0.0001 Exercise price $0.00004~$0.00010 $0.00005 $0.00004~$0.00010 Discount rate 0.20%~0.36% 0.26% 0.40%~0.50% Expected volatility 265% 281% 282% Expected dividend yield 0.00% 0.00% 0.00%
Changes in fair value of the derivative financial instruments measured at fair value on a recurring basis	Fair value at December 31, 2016 $ 1,173,213 Change in fair value of derivative liabilities (732,952 ) Reclassification to equity (2,193 ) Fair value at March 31, 2017 $ 438,068

BASIS OF PRESENTATION AND ACC20

BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basic earnings (loss) per common share
Net income (loss) available to common shareholders	$ 418,543	$ (209,553)
Weighted average common shares outstanding	1,235,190,613	99,026,812
Basic earnings (loss) per common share	$ 0	$ 0
Numerator:
Net income (loss) available to common shareholders	$ 418,543	$ (209,553)
Add convertible debt interest	140,233
Net income (loss) available to common shareholders	$ 558,776	$ (209,553)
Denominator:
Weighted average common shares outstanding	1,235,190,613	99,026,812
Preferred shares	$ 2,362
Convertible Debt	$ 36,180,720,000
Adjusted weighted average common shares outstanding	37,415,912,975	99,026,812
Diluted earnings (loss) per common share	$ 0	$ 0

BASIS OF PRESENTATION AND ACC21

BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Basis Of Presentation And Accounting Policies Details Narrative
State of Incorporation	Nevada
Date of incorporation	Dec. 13, 2006
Allowance for doubtful accounts	$ 5,521	$ 5,521
Estimated useful life - intangible assets	3 years
Earnings per share fully diluted		12,681,208,148
Preferred shares		2,362

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative)	Mar. 31, 2017USD ($)
Going Concern Details Narrative
Working capital deficit	$ (9,462,957)

SETTLEMENT PAYABLE (Details Nar

SETTLEMENT PAYABLE (Details Narrative) - USD ($)	Sep. 02, 2014	Apr. 15, 2014	Dec. 20, 2013	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2014	Dec. 31, 2016
Convertible note payable				$ 3,180,296			$ 3,182,489
Net proceeds from the sale					$ 933
Settlement payable				2,162,159	$ 2,162,159		2,162,159
Beaufort Capital Partners, LLC. [Member]
Convertible note payable				$ 10,966			10,966
Terms of conversion feature	Conversion price would be reset to $0.0001 or 65% off the lowest price of the previous five trading days
Vista Capital Investments, LLC [Member]
Terms of conversion feature		Company's common stock at a rate equal to the lesser of $0.008 per share or 60% of the lowest trade occurring during the twenty-five consecutive trading days preceding the conversion date				The conversion price has been reset to $0.005 per share or 50% of the lowest trade occurring during the twenty-five consecutive trading days preceding the conversion date. Pursuant to the agreement, if the conversion price calculated under this agreement is less than $0.01 per share
Tarpon [Member]
Accounts payable			$ 2,656,214
Proceeds from less applicable fees			75.00%
Aggregate Remittance Amount			$ 2,656,214
Convertible note payable			$ 132,000
Terms of conversion feature			The Company agreed to issue a convertible note of $132,000, maturing in 6 months and convertible to the Company’s common stock at a 50% of the lowest closing bid price for the 20 days prior to the conversion
Issuance of shares for settlement of debt					5,136,000
Virtual Technology Group, Ltd
Terms of conversion feature				Company's common stock at a rate equal to 100% of the average of the closing bid prices for the seven trading days prior to the conversion date
GSM Fund Management, LLC [Member]
Convertible note payable				$ 38,442			38,442
Tangiers Investment Group, LLC [Member]
Convertible note payable				48,394			48,394
JSJ Investments, Inc.
Convertible note payable				128,853			128,853
LG Capital Funding, LLC [Member]
Convertible note payable				6,514			8,707
WHC Capital, LLC. [Member]
Convertible note payable				$ 116,936			$ 116,936

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)

Nov. 10, 2014

Oct. 13, 2014

Sep. 02, 2014

Feb. 23, 2015

Jan. 30, 2015

Jan. 20, 2015

Sep. 23, 2014

Aug. 21, 2014

Jan. 23, 2014

May 31, 2013

Mar. 31, 2017

Dec. 31, 2016

Notes Payable

$ 102,164

$ 163,350

Beaufort Capital Partners, LLC. [Member]

Final Maturity

Mar. 2, 2015

Interest Rate

12.00%

LG Capital Funding, LLC [Member]

Final Maturity

Nov. 10, 2015

Interest Rate

8.00%

Tangiers [Member]

Final Maturity

Oct. 13, 2015

JSJ Investments, Inc. Two [Member]

Final Maturity

Jul. 20, 2015

JSJ Investments, Inc. One [Member]

Final Maturity

Feb. 21, 2015

Microcap Equity Group, LLC [Member]

Final Maturity

Jan. 23, 2017

WHC Capital, LLC. [Member]

Final Maturity

Sep. 23, 2015

Interest Rate

12.00%

Gold Globe Investments Ltd

Final Maturity

Jan. 23, 2017

GSM Fund Management, LLC [Member]

Final Maturity

Jan. 30, 2016

Interest Rate

12.00%

JSJ Investments, Inc.

Final Maturity

Dec. 2, 2013

PowerUp Lending Group, Ltd. [Member]

Final Maturity

Feb. 22, 2017

Interest Rate

33.00%

Notes Payable

13,934

Morchester International Limited One [Member]

Final Maturity

Jul. 14, 2012

Interest Rate

8.00%

Notes Payable

$ 10,000

10,000

Morchester International Limited

Final Maturity

Jul. 14, 2012

Interest Rate

15.00%

Notes Payable

$ 35,429

35,429

PowerUp Lending Group, Ltd. One [Member]

Final Maturity

May 6, 2017

Interest Rate

46.00%

Notes Payable

$ 23,921

42,999

PowerUp Lending Group, Ltd. Two [Member]

Final Maturity

Jul. 20, 2017

Interest Rate

46.00%

Notes Payable

$ 22,511

35,230

Virtual Technology Group, Ltd

Final Maturity

Jan. 23, 2017

Auctus Private Equity Fund, LLC. [Member]

Final Maturity

Jun. 27, 2017

Notes Payable

$ 10,303

$ 25,758

Vista Capital Investments, LLC [Member]

Final Maturity

Apr. 15, 2016

NOTES PAYABLE (Details 1)

NOTES PAYABLE (Details 1) - USD ($)	Mar. 31, 2017	Dec. 31, 2016	Apr. 15, 2015	Dec. 20, 2013
Convertible notes payable	$ 3,180,296	$ 3,182,489
Debt discount		(47,478)
Total	3,180,296	3,135,011
Tangiers Investment Group, LLC [Member]
Convertible notes payable	$ 48,394	48,394
PowerUp Lending Group, Ltd. Two [Member]
Interest Rate	46.00%
JSJ Investments, Inc.
Convertible notes payable	$ 128,853	128,853
LG Capital Funding, LLC [Member]
Convertible notes payable	$ 6,514	8,707
Interest Rate	8.00%
WHC Capital, LLC. [Member]
Convertible notes payable	$ 116,936	116,936
Interest Rate	12.00%
Beaufort Capital Partners, LLC. [Member]
Convertible notes payable	$ 10,966	10,966
Interest Rate	12.00%
GSM Fund Management, LLC [Member]
Convertible notes payable	$ 38,442	38,442
Interest Rate	12.00%
PowerUp Lending Group, Ltd. One [Member]
Interest Rate	46.00%
Morchester International Limited
Interest Rate	15.00%
PowerUp Lending Group, Ltd. [Member]
Interest Rate	33.00%
Morchester International Limited One [Member]
Interest Rate	8.00%
Vista Capital Investments, LLC [Member]
Debt discount			$ 25,000
Tarpon [Member]
Convertible notes payable				$ 132,000
Microcap Equity Group, LLC [Member]
Convertible notes payable	$ 18,892	18,892
Interest Rate	10.00%
Virtual Technology Group, Ltd
Convertible notes payable	$ 481,500	481,500
Interest Rate	24.00%
Gold Globe Investments Ltd
Convertible notes payable	$ 2,324,000	2,324,000
Interest Rate	24.00%
Vista Capital Investments, LLC [Member]
Convertible notes payable	$ 5,800	$ 5,800
Interest Rate	12.00%
Minimum [Member] | Tangiers Investment Group, LLC [Member]
Interest Rate	0.00%
Minimum [Member] | JSJ Investments, Inc.
Interest Rate	10.00%
Maximum [Member] | Tangiers Investment Group, LLC [Member]
Interest Rate	10.00%
Maximum [Member] | JSJ Investments, Inc.
Interest Rate	12.00%

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)

Sep. 14, 2016

Jul. 09, 2016

May 06, 2016

Nov. 10, 2014

Oct. 13, 2014

Sep. 02, 2014

Jul. 28, 2016

Feb. 23, 2015

Jan. 30, 2015

Jan. 20, 2015

Sep. 23, 2014

Aug. 21, 2014

Apr. 23, 2014

Apr. 15, 2014

Jan. 23, 2014

Dec. 20, 2013

May 31, 2013

Mar. 31, 2017

Dec. 31, 2014

Dec. 31, 2016

Jun. 27, 2016

Sep. 23, 2015

Apr. 15, 2015

Jan. 23, 2015

Dec. 03, 2014

Jan. 27, 2014

Dec. 09, 2011

Sep. 05, 2008

Interest free loan

$ 55,991

Issuance discount

$ (47,478)

Principal note amount

$ 247,500

Advance from officer

3,400

Notes payable

$ 292,929

Beaufort Capital Partners, LLC. [Member]

Convertible promissory note

$ 21,000

Principal note amount

10,966

Discount rate

50.00%

Maturity date

Mar. 2, 2015

Trading days

15 days

Conversion price

Conversion price would be reset to $0.0001 or 65% off the lowest price of the previous five trading days

Final settlement of convertible notes

10,966

GMGI [Member]

Trading days

180 days

LG Capital Funding, LLC [Member]

Convertible promissory note

$ 37,000

Principal note amount

$ 13,000

Discount rate

50.00%

Maturity date

Nov. 10, 2015

Trading days

180 days

Number of converted, shares issued

61,115,600

Converted shares, amount

$ 2,193

Accrued interest

$ 863

Interest rate

24.00%

Tangiers [Member]

Convertible promissory note

$ 33,000

Discount rate

45.00%

Maturity date

Oct. 13, 2015

Trading days

180 days

Interest rate

10.00%

Vista Capital Investments, LLC [Member]

Convertible promissory note

$ 250,000

Issuance discount

25,000

Net proceeds

$ 25,000

Increase principal amount

$ 10,000

Increase outstanding balance of note

120.00%

Maturity date

Apr. 15, 2016

Conversion price

Company's common stock at a rate equal to the lesser of $0.008 per share or 60% of the lowest trade occurring during the twenty-five consecutive trading days preceding the conversion date

The conversion price has been reset to $0.005 per share or 50% of the lowest trade occurring during the twenty-five consecutive trading days preceding the conversion date. Pursuant to the agreement, if the conversion price calculated under this agreement is less than $0.01 per share

JSJ Investments, Inc. Two [Member]

Discount rate

40.00%

Maturity date

Jul. 20, 2015

Cash redemption

150.00%

Loss on extinguishment of debt

$ 441

Tarpon [Member]

Conversion price

The Company agreed to issue a convertible note of $132,000, maturing in 6 months and convertible to the Company’s common stock at a 50% of the lowest closing bid price for the 20 days prior to the conversion

JSJ Investments, Inc. One [Member]

Convertible promissory note

$ 50,000

Discount rate

60.00%

Maturity date

Feb. 21, 2015

Cash redemption

150.00%

Interest rate

20.00%

Microcap Equity Group, LLC [Member]

Convertible promissory note

$ 20,000

Discount rate

40.00%

Maturity date

Jan. 23, 2017

Loss on extinguishment of debt

$ 28,213

WHC Capital, LLC. [Member]

Convertible promissory note

$ 75,000

Principal note amount

$ 116,936

Discount rate

50.00%

Maturity date

Sep. 23, 2015

Penalty amount

$ 41,978

Interest rate

12.00%

22.00%

Final settlement of convertible notes

$ 116,936

Virtual Technology Group, Ltd

Convertible promissory note

$ 1,500,000

Amount of replacement note

$ 50,000

$ 62,500

60,000

$ 20,000

$ 20,000

Discount rate

100.00%

Maturity date

Jan. 23, 2017

Trading days

180 days

Conversion price

Company's common stock at a rate equal to 100% of the average of the closing bid prices for the seven trading days prior to the conversion date

Gold Globe Investments Ltd

Convertible promissory note

$ 2,800,000

Amount of replacement note

$ 45,000

Discount rate

100.00%

Maturity date

Jan. 23, 2017

Trading days

180 days

GSM Fund Management, LLC [Member]

Convertible promissory note

$ 62,500

Principal note amount

$ 38,442

Discount rate

50.00%

Maturity date

Jan. 30, 2016

Trading days

180 days

Loss on extinguishment of debt

$ 52,364

Remaining amount of note

$ 7,729

Interest rate

12.00%

18.00%

JSJ Investments, Inc.

Convertible promissory note

$ 50,000

Discount rate

50.00%

Maturity date

Dec. 2, 2013

Trading days

120 days

Remaining amount of note

$ 10,670

PowerUp Lending Group, Ltd. Two [Member]

Maturity date

Jul. 20, 2017

Auctus Private Equity Fund, LLC. [Member]

Maturity date

Jun. 27, 2017

PowerUp Lending Group, Ltd. One [Member]

Maturity date

May 6, 2017

PowerUp Lending Group, Ltd. [Member]

Maturity date

Feb. 22, 2017

Morchester International Limited

Maturity date

Jul. 14, 2012

Morchester International Limited One [Member]

Maturity date

Jul. 14, 2012

Tangiers Investment Group, LLC [Member]

Convertible promissory note

$ 55,000

Principal note amount

$ 15,393

Remaining amount of note

$ 18,178

Interest rate

20.00%

Final settlement of convertible notes

$ 48,394

JSJ Investments, Inc. Two Three [Member]

Convertible promissory note

$ 60,000

Interest rate

12.00%

Gold Globe Investments Ltd

Principal note amount

$ 2,324,000

Conversion price

Company's common stock at a rate equal to 100% of the average of the lowest three trading prices during the seven trading days prior to the conversion date

Interest rate

24.00%

Vista Capital Investments, LLC [Member]

Principal note amount

$ 5,800

Virtual Technology Group, Ltd

Principal note amount

$ 481,500

Interest rate

24.00%

Microcap Equity Group, LLC [Member]

Principal note amount

$ 18,892

Minimum [Member]

Interest rate

15.00%

Maximum [Member]

Interest rate

8.00%

Loan Three [Member]

Total repayment amount of note

$ 76,000

Loan agreement

60,000

Loans payable, daily amount

$ 360

Loan Five [Member]

Principal note amount

22,511

Total repayment amount of note

$ 63,500

Loan agreement

50,000

Loans payable, daily amount

$ 301

Loan Four [Member]

Principal note amount

23,921

Total repayment amount of note

$ 95,250

Loan agreement

75,000

Loans payable, daily amount

$ 451

JSJ Investments, Inc. Two [Member]

Principal note amount

32,623

JSJ Investments, Inc. One [Member]

Principal note amount

45,560

Auctus [Member]

Principal note amount

$ 15,455

Final settlement of convertible notes

$ 61,819

DERIVATIVE LIABILITIES - NOTE27

DERIVATIVE LIABILITIES - NOTE CONVERSION FEATURE (Details) - $ / shares	Mar. 03, 2017	Mar. 31, 2017	Dec. 31, 2016
Estimated market value of common stock on measurement date	$ 0.0001	$ 0.0001	$ 0.0001
Exercise Price	$ 0.00005
Discount rate	0.26%
Expected volatility	281.00%	282.00%	265.00%
Expected dividend yield	0.00%	0.00%	0.00%
Minimum [Member]
Exercise Price		$ 0.00004
Discount rate		0.40%	0.20%
Maximum [Member]
Exercise Price		$ 0.00010
Discount rate		0.50%	0.36%

DERIVATIVE LIABILITIES - NOTE28

DERIVATIVE LIABILITIES - NOTE CONVERSION FEATURE (Details 1)	3 Months Ended
	Mar. 31, 2017USD ($)
Derivative Liabilities - Note Conversion Feature Details 1
Fair value, Beginning Balance	$ 1,173,213
Change in fair value of derivative liabilities	(732,952)
Reclassification to equity	(2,193)
Fair value, Ending Balance	$ 438,068

DERIVATIVE LIABILITIES - NOTE29

DERIVATIVE LIABILITIES - NOTE CONVERSION FEATURE (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Derivative Liabilities - Note Conversion Feature Details Narrative
Unrealized gain on derivative liabilities-note conversion feature	$ (732,952)	$ (186,963)

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	Jul. 01, 2013	Mar. 31, 2017	Dec. 31, 2016	Sep. 28, 2016
Commitments And Contingencies Details Narrative
Accounts payable and accrued liabilities			$ 17,500
Lease expiry date	Oct. 31, 2019
Rent expense	$ 42,000
Rent deposit		$ 7,535	$ 7,535
Security deposit	$ 7,535
Civil penalties				$ 50,000
Payment for civil penalties		$ 15,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)

Jul. 09, 2016

Nov. 10, 2014

Oct. 13, 2014

Sep. 02, 2014

May 15, 2013

Jan. 30, 2015

Jan. 23, 2014

May 31, 2013

Mar. 31, 2017

Mar. 31, 2016

Aug. 24, 2016

Dec. 31, 2016

Offset payable amount

$ 1,372,907

Other payable – related party

34,824

Beaufort Capital Partners, LLC. [Member]

Trading days

15 days

GMGI [Member]

Accounts payable - related parties

$ 20,000

Receivable

15,195

Interest rate

5.00%

Trading days

180 days

LG Capital Funding, LLC [Member]

Trading days

180 days

Tangiers [Member]

Trading days

180 days

Gold Globe Investments Ltd

Trading days

180 days

Virtual Technology Group, Ltd

Trading days

180 days

GSM Fund Management, LLC [Member]

Trading days

180 days

JSJ Investments, Inc.

Trading days

120 days

Articulate [Member]

Accounts payable - related parties

1,885,451

1,611,815

Revenue

156,334

$ 0

Receivable

41,334

Service fees

$ 10,000

UTI [Member]

Revenue

0

1,376,932

Globaltech [Member]

Accounts payable - related parties

66,176

Receivable

31,352

Other payable – related party

34,824

Elmside [Member]

Accounts payable - related parties

55,991

55,991

Jay Goodman [Member]

Accounts payable - related parties

139,500

$ 130,500

Service fees

$ 3,000

Brett Goodman [Member]

Consulting fees

$ 0

$ 13,250

Elray [Member]

Software usage fee percentage

0.50%

EQUITY (Details Narrative)

EQUITY (Details Narrative) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016	Dec. 29, 2015	Jun. 30, 2015	Sep. 18, 2014	Jun. 20, 2014	Jul. 14, 2013	Sep. 24, 2012	Jul. 01, 2012	May 03, 2012
Common Stock; Par Value	$ 0.001	$ 0.001
Other asset	$ 5,000	$ 5,000
Common Stock; Shares Issued	1,284,083,093	1,222,967,493
Tarpon [Member]
Estimated market value		$ 6,669
Common Stock; Shares Issued		5,136,000	4,101,000
Creditors claims		$ 933
Loss on settlement of debt		$ 5,736
Series C Convertible Preferred Stock [Member]
Preferred Stock; Shares Authorized						10,000,000
Stock conversion rate						$ 0.0003
Preferred Stock; Shares Issued				5,000,000
Series B Convertible Preferred Stock [Member]
Preferred Stock; Shares Authorized									100,000,000
Preferred Stock; Shares Issued							192,000,000
Estimated market value							$ 43,031
Series A Convertible Preferred Stock [Member]
Change in authorized share capital										300,000,000
Preferred Stock; Shares Authorized	300,000,000	300,000,000
Stock conversion rate										$ 0.00
Preferred Stock; Par Value	$ 0.001	$ 0.001
Preferred Stock; Shares Issued	0	0
Series B Convertible Preferred Stock [Member]
Change in authorized share capital								280,000,000
Preferred Stock; Shares Authorized	280,000,000	280,000,000
Stock conversion rate								$ 0.00
Preferred Stock; Par Value	$ 0.001	$ 0.001
Preferred Stock; Shares Issued	192,000,000	192,000,000
Series C Convertible Preferred Stock [Member]
Preferred Stock; Shares Authorized	10,000,000	10,000,000
Preferred Stock; Par Value	$ 0.001	$ 0.001
Preferred Stock; Shares Issued	7,083,333	7,083,333
Convertible Notes Payable [Member]
Common stock, shares issued upon conversion of notes	61,115,600
Principal amount converted	$ 2,193
Accrued interest converted	$ 863
Asialink Treasure Limited [Member] | Series C Convertible Preferred Stock [Member]
Preferred Stock; Par Value					$ 2,083
Preferred Stock; Shares Issued					2,083,333
Ownership percentage					49.00%
Global Tech Software Solutions LLC [Member] | Series C Convertible Preferred Stock [Member]
Ownership percentage					25.00%
Wagering generated by Golden Galaxy					1.00%

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Apr. 27, 2017	Dec. 31, 2016
Authorized common shares	2,500,000,000		2,500,000,000
Subsequent Event [Member]
Authorized common shares	10,000,000	1,500,000,000
Change in authorized share capital	1,500,000,000	2,500,000,000
Convertible Notes Payable [Member]
Common stock, shares issued upon conversion of notes	61,115,600
Principal amount converted	$ 2,193
Accrued interest converted	$ 863
Convertible Notes Payable [Member] | Subsequent Event [Member]
Common stock, shares issued upon conversion of notes	127,391,138
Principal amount converted	$ 5,383
Accrued interest converted	$ 922