Blue Line Protection (BLPG) 10-Q/A 3 Jun 16 2016 Q1 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - USD ($)	3 Months Ended
	Mar. 31, 2016	Jun. 30, 2015
Document and Entity Information:
Entity Registrant Name	Blue Line Protection Group, Inc.
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Trading Symbol	blpg
Amendment Flag	true
Amendment Description	1
Entity Central Index Key	1,416,697
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		126,575,282
Entity Public Float		$ 58,718,685
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED FOR MARCH 31, 2016) - USD ($)		Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and equivalents		$ 27,447	$ 16,211
Accounts receivable, net		150,176	51,251
Accrued receivables		33,521	73,995
Prepaid expenses and deposits		12,882	20,669
Total current assets		224,026	162,126
Fixed assets:
Machinery and equipment, net		140,351	150,910
Construction in progress		1,209,173	1,147,139
Net assets from discontinued operations		2,782	2,782
Total fixed assets		1,352,306	1,300,831
Total assets		1,576,332	1,462,957
Current liabilities:
Accounts payable and accrued liabilities		423,193	332,169
Notes payable		251,881	75,000
Convertible notes payable, net of unamortized discounts		159,726	0
Notes payable - related parties		213,347	213,347
Convertible notes payable - related parties, net of unamortized discounts		346,085	283,385
Current portion of long-term debt		679,062	679,062
Net liabilities from discontinued operations		1,335	1,335
Total current liabilities		2,074,629	1,584,298
Long-term liabilities:
Long-term debt		11,795	12,836
Total Long-term liabilities		11,795	12,836
Total liabilities		2,086,424	1,597,134
Stockholders' deficit:
Preferred Stock		0	0
Common Stock		125,348	125,348
Common Stock, owed but not issued	[1]	13	13
Additional paid-in capital		4,300,757	4,276,291
Accumulated (deficit)		(4,936,210)	(4,535,829)
Total stockholders' deficit		(510,092)	(134,177)
Total liabilities and stockholders' deficit		$ 1,576,332	$ 1,462,957
[1]	12,923 shares owed but not issued.

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Statement of Financial Position
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	100,000,000	100,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	1,400,000,000	1,400,000,000
Common Stock, Shares Issued	125,348,026	125,348,026
Common Stock, Shares Outstanding	125,348,026	125,348,026

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Statement of Income
Revenue	$ 651,831	$ 520,231
Cost of revenue	(555,255)	(449,521)
Gross profit	96,576	70,710
Expenses:
Advertising	6,764	273
Depreciation	10,559	10,277
General and administrative expenses	410,865	409,141
Total expenses	428,188	419,691
Operating loss	(331,612)	(348,981)
Other expenses:
Interest expense	(68,769)	(24,535)
Interest income	0	2,056
Total other expenses	(68,769)	(22,479)
Net loss	$ (400,381)	$ (371,460)
Net loss per share - basic	$ 0	$ 0
Net loss per share - fully diluted	$ 0	$ 0
Weighted average number of common shares outstanding - basic	125,348,026	123,134,171
Weighted average number of common shares outstanding - fully diluted	125,348,026	123,134,171

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities
Net loss	$ (400,381)	$ (371,460)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	10,559	10,277
Stock-based compensation expense	20,466	108,561
Amortization of discounts on notes payable	56,756	12,655
Changes in operating assets and liabilities:
Decrease (Increase) in accounts receivable	(58,451)	(1,584)
Decrease (Increase) in deposits and prepaid expenses	7,787	0
(Decrease) Increase in accounts payable and accrued liabilities	82,703	139,640
(Decrease) Increase in long-term liabilities	0	(987)
Net cash used in operating activities	(280,561)	(102,898)
Cash flows from investing activities
Receipt of payments from notes receivable	0	7,981
Purchase of property, plant and equipments	(53,713)	0
Net cash (used in) provided by investing activities	(53,713)	7,981
Financing activities
Repayment of notes payable	(32,240)	0
Proceeds from notes payable, net of original issue discounts	200,000	50,000
Proceeds from convertible notes payable, net of original issue discounts	157,750	0
Repayment of notes payable - related party	(20,000)	(172,000)
Proceeds from notes payable - related party	20,000	67,000
Proceeds from convertible notes payable - related party	20,000	0
Common stock payable	0	100
Issuances of common stock	0	50,000
Net cash provided by (used in) financing activities	345,510	(4,900)
Net increase (decrease) in cash	11,236	(99,817)
Cash - beginning	16,211	211,922
Cash - ending	27,447	112,105
Supplemental disclosures:
Interest paid	0	0
Income taxes paid	0	0
Non-cash investing and financing activities:
Debt discount due to common stock issued with note	0	14,386
Debt discount due to beneficial conversion feature	4,000	0
Interest capitalized as construction in progress	$ 8,321	$ 22,326

Note 1 - History and Organizati

Note 1 - History and Organization of The Company	3 Months Ended
	Mar. 31, 2016
Notes
Note 1 - History and Organization of The Company	Note 1 – History and organization of the company The Company was originally organized on September 11, 2006 (Date of Inception) under the laws of the State of Nevada, as The Engraving Masters, Inc. The Company was authorized to issue up to 100,000,000 shares of its common stock and 100,000,000 shares of preferred stock, each with a par value of $0.001 per share. On March 14, 2014, the Company acquired Blue Line Protection Group, Inc., a Colorado corporation formed in February 2014 (“Blue Line Colorado”), as a wholly-owned subsidiary of the Company. Blue Line Colorado provides protection, compliance and financial services to the lawful cannabis industry. On May 2, 2014, the Company changed its name from The Engraving Masters, Inc. to Blue Line Protection Group, Inc. (“BLPG”) On May 6, 2014, the Company effected a forward stock split and a pro-rata increase in its authorized common stock on a basis of 14-to-1, whereby each shareholder received 14 newly issued shares of common stock for each 1 share held. Additionally, the authorized number capital of the Company concurrently increased to 1,400,000,000 shares of $0.001 par value common stock. All references to share and per share amounts in the condensed consolidated financial statements and accompanying notes thereto have been retroactively restated to reflect the forward stock split. Blue Line Protection Group, Inc. provides armed protection, financial solutions, logistics, and compliance services for businesses engaged in the legal cannabis industry. The Company offers asset logistic services, such as armored transportation service; security services, including shipment protection, money escorts, security monitoring, asset vaulting, VIP and dignitary protection, and others; financial services, such as handling transportation and storage of currency; training; and compliance services.

Note 2 - Basis of Presentation

Note 2 - Basis of Presentation	3 Months Ended
	Mar. 31, 2016
Notes
Note 2 - Basis of Presentation	Note 2 – Basis of presentation Interim financial statements The unaudited interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2015 and notes thereto included in the Company's annual report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports. Results of operations for the interim periods are not indicative of annual results. Reclassification Certain amounts from prior periods have been reclassified to conform to the current period presentation. Concentrations The Company had five major customers which generated approximately 66% (23%, 16%, 10%, 9% and 8%) of total revenue in the three months ended March 31, 2016. The Company had five major customers which generated approximately 67% (16%, 15%, 13%, 13% and 10% ) of total revenue in the three months ended March 31, 2015.

Note 3 - Going Concern

Note 3 - Going Concern	3 Months Ended
	Mar. 31, 2016
Notes
Note 3 - Going Concern	Note 3 - Going concern The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying financial statements, the Company has a net loss of $400,381 for the three months ended March 31, 2016 and had a working capital deficit of $1,850,603 as of March 31, 2016. These conditions raise substantial doubt about the Company's ability to continue as a going concern. In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company is significantly dependent upon its ability, and will continue to attempt, to secure additional equity and/or debt financing. There are no assurances that the Company will be successful and without sufficient financing it would be unlikely for the Company to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These financial statements do not include any adjustments that might arise from this uncertainty.

Note 4 - Contingencies

Note 4 - Contingencies	3 Months Ended
	Mar. 31, 2016
Notes
Note 4 - Contingencies	Note 4 – Contingencies Contingencies On December 28, 2015 Patrick Deparini, the Company’s former CFO resigned. Mr. Deparini purports his resignation was made pursuant to a termination clause for other than cause if he is required to undertake other responsibilities other then set forth in his employment agreement. Mr., Deparini claims through the date of his resignation he is owed a total of $154,000 in unreimbursed compensation, $575 in accrued authorized expenses and the remaining balance of his base salary as defined in the employment agreement in the amount of $179,000. As of December 31, 2015 the Company has accrued a total of $125,575. If litigation is commenced the Company will attempt a reasonable out-of-court settlement and if such efforts are not successful, will defend the litigation. On November 6, 2015 Daniel Sullivan sent a wage claim demand. Mr. Sullivan purports to have had an Independent Contractor Agreement with the Company which provides he is entitled to certain compensation and to be reimbursed for Company expenses. The demand claims unpaid compensation in the amount of $8,055 and unreimbursed expenses in the amount of $154,409. The Company denies the agreement was ever signed. As of December 31, 2015 the Company accrued a total of $88,968. If litigation is commenced the Company will attempt a reasonable out-of-court settlement and if such efforts are not successful, will defend the litigation. Mile High Real Estate Group, an entity owned by Mr. Sullivan, sent correspondence stating the Mr. Sullivan and/or Mile High Real Estate loaned the Company either directly or directly to contractors, material suppliers or utilities for operating and building remodeling in the amount of $98,150. Counsel for Mr. Sullivan stated that he was still compiling information. The Company is investigating whether Mr. Sullivan and/or Mile High Real Estate Group ever made the alleged loans. If the alleged loan was actually made, the Company will seek an out-of-court settlement. As of December 31, 2015 the Company accrued a total of $98,150.

Note 5 - Fixed Assets and Const

Note 5 - Fixed Assets and Construction in Progress	3 Months Ended
	Mar. 31, 2016
Notes
Note 5 - Fixed Assets and Construction in Progress	Note 5 – Fixed assets and construction in progress Fixed assets consisted of the following at: March 31, 2016 December 31, 2015 Automotive vehicles $ 173,926 $ 173,926 Furniture and equipment 46,068 46,068 Fixed assets, total 219,994 219,994 Total : accumulated depreciation (79,643 ) (69,084 ) Fixed assets, net (Machinery and equipment, net) $ 140,351 $ 150,910 Depreciation expenses for the three months ended March 31, 2016 and 2015 were $10,559 and $10,277, respectively. On July 15, 2014, the Company purchased a commercial building for a total purchase price of $750,000, for which the Company paid a down payment of $75,000 and financed the remaining $675,000 in the form of a promissory note. The note bears interest at a rate of 5% per annum on the unpaid principal balance and is due in full on July 31, 2016. Interest is paid monthly, in arrears, in the amount of $2,813 beginning August 31, 2014. Through December 31, 2015, approximately $363,377 in capital improvements and $33,762 of capitalized expenses have been made to the property. As of March 31, 2016, the Company has not yet completed the construction on the property and it was not available and ready for use, accordingly, no depreciation expense has been recorded. As of March 31, 2016 and December 31, 2015, the balance of construction in progress was $1,209,173 and $1,147,139, respectively.

Note 6 - Notes Payable

Note 6 - Notes Payable	3 Months Ended
	Mar. 31, 2016
Notes
Note 6 - Notes Payable	Note 6 – Notes payable During February 2015, the Company borrowed $50,000 from a non-affiliated person. The loan is due and payable on demand with interest at 10% per annum. As of March 31, 2016 and December 31, 2015, the principal balance owed on this loan was $50,000 and $50,000, respectively. During April 2015, the Company borrowed $25,000 from a non-affiliated person. The loan is due and payable on demand with interest at 6% per year and has a 5% per month penalty upon default. As of March 31, 2016 and December 31, 2015, the principal balance owed on this loan was $25,000 and $25,000, respectively. On February 23, 2016 the Company signed a Merchant Agreement with a lender. Under the agreement we received $193,550 in exchange for rights to all customer receipts until the lender is paid $264,000, which is collected at the rate of $1,397 per business day. The payments were secured by second position rights to all customer receipts until the loan has been paid in full. The Company paid $6,450 in fees in connection with this loan. The note was still outstanding as of March 31, 2016 with a balance of $228,801. The Company is amortizing the debt discount of $70,000 over the term of the loan. As of March 31, 2016 the unamortized discount was $59,944. On January 5, 2016, the Company borrowed $10,000 from a non-affiliated person. The loan was due and payable on January 5, 2017 and bore interest at 5% per annum. The principal balance owed on this loan at March 31, 2016 was $10,000. Convertible notes payable to non-related party In January 2016 the Company borrowed $58,000 from an unrelated third party. The Company paid fees of $3,000 associated with this note which were recognized as a discount to the note. The loan has a maturity date of November 1, 2016 and bears interest at the rate of 8% per year. If the loan is not paid when due, any unpaid loan amount will bear interest at 22% per year. The Lender is entitled, at its option, at any time after July 26, 2016 to convert all or any part of the outstanding and unpaid principal and accrued interest into shares of the Company’s common stock at a price per share equal to 58% of the average of the three lowest trading prices for the 10 trading days immediately preceding the conversion date. The Company may prepay this note according to the following schedule: Payment date on or before Payment Amount May 27, 2016 $ 69,600 June 26, 2016 $ 75,400 July 26, 2016 $ 78,300 After July 26, 2016, the Company may not prepay the note. In February 2016 the Company borrowed $110,000 from an unrelated third party. The Company paid fees of $7,250 associated with this note which were recognized as a discount to the note. The loan has a maturity date of November 11, 2016 and bears interest at the rate of 10% per year. If the loan is not paid when due, any unpaid amount will bear interest at 24% per year. The Lender is entitled, at its option, at any time after July 26, 2016 to convert all or any part of the outstanding and unpaid principal and accrued interest into shares of the Company’s common stock at a price per share equal to 50% of the average of the five lowest trading prices for the 25 trading days immediately preceding the conversion date. In the event the Company experiences a DTC “Chill” on its shares, the conversion price shall be decreased to 35% instead of 50% while the “Chill” is in effect. In no event shall the Lender be allowed to effect a conversion if such con-version, along with all other shares of Company Common Stock beneficially owned by the Lender and its affiliates would exceed 9.9% of the outstanding shares of the Common Stock of the Company. In the event the Company is not fully current in its filings with the Securities and Exchange Commission within 90 days from the date of the Note, the conversion discount shall be 35% instead of 50%. Note 7 – Notes payable – related party On July 31, 2014, the Company borrowed $98,150 from an entity controlled by an officer and shareholder of the Company. The loan is due and payable on demand and bears no interest. As of March 31, 2016 and December 31, 2015, the principal balance owed on this loan is $98,150 and $98,150, respectively. As of December 31, 2014, a related party loaned the Company $10,000, in the form of cash and expenses paid on behalf of the Company. The loan is due and payable on demand and bears no interest. During the year ended December 31, 2015 the Company borrowed an additional $20,000 and as of March 31, 2016 and December 31, 2015, the principal balance owed on this loan was $30,000 and $30,000, respectively. As of December 31, 2014, a related party loaned the Company $180,122, in the form of cash and expenses paid on behalf of the Company. The loan is due and payable on demand and bears no interest. The Company repaid $125,500 towards this note during 2015 and as of March 31, 2016 and December 31, 2015, the principal balance owed on this loan was $54,622 and $54,622, respectively. During 2015, the Company borrowed $43,575 from its former CFO. As of December 31, 2015 $43,000 of the loan had been repaid. The note is non-interest bearing, and due on demand. As of March 31, 2016 and December 31, 2015 the principal amount owed on this loan was $575. During October 2015, the Company borrowed $30,000 from an entity controlled by an officer of the Company. The loan is due and payable on demand and is non-interest bearing. During the first quarter of 2016, the Company repaid $20,000 and borrowed an additional $20,000 from the related party. As of March 31, 2016 and December 31, 2015, the principal balance owed on this loan was $30,000 and $30,000, respectively. Convertible notes payable to related party In July 2015, the Company entered into an arrangement with a related party, whereby the Company could borrow up to $500,000 in Convertible Notes. The Convertible Note bears interest at a rate of 5% per annum and payable quarterly in arrears and matures twelve months from the date of issuance, and is convertible into shares of the Company’s common stock at a per share conversion price equal to $0.025. Through December 31, 2015, the Company borrowed a total of $415,000. As of March 31, 2016 and December 31, 2015, the principal balance owed on this Convertible Note is $435,000 and $415,000, respectively. The Company evaluated the convertible note for possible embedded derivatives and concluded that none exist. However, the Company concluded a portion of the note should be allocated to additional paid-in capital as a beneficial conversion feature at the issuance date, since the conversion price on that date was lower than the fair market value of the underlying stock. Resultantly, a discount of $190,040 was attributed to the beneficial conversion feature of the note, which amount is being amortized through the maturity date of the note. As of March 31, 2016 and December 31, 2015, a total of $46,700 and $56,185, respectively has been amortized and recorded as interest expense, leaving a balance of $88, 915 and $131,615 in discounts related to the beneficial conversion feature of this note. The carrying amount of the convertible note, net of the unamortized debt discount, was $346,085 and $283,385 as of March 31, 2016 and December 31, 2015, respectively. Aggregate amortization of debt discounts was $56,756 and $12,655 for the three months ended March 31, 2016 and 2015, respectively.

Note 8 - Long Term Notes Payabl

Note 8 - Long Term Notes Payable	3 Months Ended
	Mar. 31, 2016
Notes
Note 8 - Long Term Notes Payable	Note 8 – Long term notes payable On July 15, 2014, the Company purchased a commercial building for $750,000, for which the Company made a down payment of $75,000 and financed the remaining $675,000 with a promissory note. The note bears interest at a rate of 5% per annum on the unpaid principal balance and is due in full on July 31, 2016. Interest is paid monthly, in arrears, in the amount of $2,813 beginning August 31, 2014. As of March 31, 2016 and December 31, 2015, the principal balance was $675,000 and a total of $57,729 and $49,292, respectively, in interest payments have been made. On November 21, 2014, the Company purchased a vehicle for $20,827, net of discounts. The Company financed the $20,827 at an interest rate of 2.42% for five years, with a maturity date of December 5, 2019. As of March 31, 2016 and December 31, 2015, the total principal balance of the note is $15,857 and $16,898, respectively, of which $11,795 and $12,836 is considered a long-term liability and $4,062 and $4,062 is considered a current liability.

Note 9 - Stockholders' Equity

Note 9 - Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Notes
Note 9 - Stockholders' Equity	Note 9 - Stockholders’ equity The Company was originally authorized to issue 100,000,000 shares of common stock and 100,000,000 shares of preferred stock. On May 6, 2014, the Company effected a forward stock split and a pro-rata increase in its authorized common stock on a basis of 14-to-1, whereby each shareholder received 14 newly issued shares of common stock for each 1 share held. Additionally, the number of authorized shares increased to 1,400,000,000 shares of common stock. All references to share and per share amounts in the consolidated financial statements and these notes thereto have been retroactively restated to reflect the forward stock split.

Note 10 - Warrants and Options

Note 10 - Warrants and Options	3 Months Ended
	Mar. 31, 2016
Notes
Note 10 - Warrants and Options	Note 10 – Warrants and options All stock options have an exercise price equal to the fair market value of the common stock on the date of grant. The fair value of each option award is estimated using a Black-Scholes-Merton option valuation model. The Company has not paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future. Consequently, the Company uses an expected dividend yield of zero in the Black-Scholes-Merton option valuation model. Volatility is an estimate based on the calculated historical volatility of similar entities in industry, in size and in financial leverage, whose share prices are publicly available. The expected life of awards granted represents the period of time that they are expected to be outstanding. The Company has no historical experience with which to establish a basis for determining an expected life of these awards. Therefore, the Company only gave consideration to the contractual terms and did not consider the vesting schedules, exercise patterns and pre-vesting and post-vesting forfeitures significant to the expected life of the option award. The Company bases the risk-free interest rate used in the Black-Scholes-Merton option valuation model on the implied yield currently available on U.S. Treasury issues with an equivalent remaining term equal to the expected life of the award. The following is a summary of the Company’s stock option activity for the three months ended March 31, 2016: Number Of Shares Weighted-Average Exercise Price Outstanding at December 31, 2015 17,256,738 $ 0.14 Exercised - $ 0.00 Cancelled (246,667 ) $ 0.21 Outstanding at March 31, 2016 17,010,071 $ 0.14 Options exercisable at December 31, 2015 8,150,896 $ 0.19 Options exercisable at March 31, 2016 8,150,896 $ 0.19 The following tables summarize information about stock options outstanding and exercisable at March 31, 2016 and December 31, 2015: OPTIONS OUTSTANDING AND EXERCISABLE AT MARCH 31, 2016 Range of Exercise Prices Number of Options Outstanding Weighted-Average Remaining Contractual Life in Years Weighted- Average Exercise Price Number Exercisable Weighted- Average Exercise Price $ 0.035 – 1.00 17,010,071 4.28 $ 0.14 8,150,896 $ 0.19 17,010,071 4.28 $ 0.14 8,150,896 $ 0.19 OPTIONS OUTSTANDING AND EXERCISABLE AT DECEMBER 31, 2015 Range of Exercise Prices Number of Options Outstanding Weighted-Average Remaining Contractual Life in Years Weighted- Average Exercise Price Number Exercisable Weighted- Average Exercise Price $ 0.035 – 1.00 17,256,738 4.47 $ 0.14 8,150,896 $ 0.19 17,256,738 4.47 $ 0.14 8,150,896 $ 0.19 Total stock-based compensation expense in connection with options and modified awards recognized in the consolidated statement of operations for the three months ended March 31, 2016 and 2015 was $20,466 and $108,561, respectively.

Note 11 - Subsequent Events

Note 11 - Subsequent Events	3 Months Ended
	Mar. 31, 2016
Notes
Note 11 - Subsequent Events	Note 11 – Subsequent Events On April 1, 2016 the Company borrowed $144,000 from an unrelated third party. The loan bears interest at a rate of 24.25% per year and is due and payable on April 1, 2017. On April 14, 2016, the Company entered into an agreement with an unrelated third party to provide the Company with investor relations services. Upon signing the agreement, the Company paid the investor relations consultant $75,000 and issued the consultant 1,500,000 shares of its restricted common stock. The agreement requires the Company to pay the consultant an additional $75,000 prior to June 14, 2016. On April 18, 2016 and May 1, 2016, the Company’s Chief Executive Officer loaned the Company $40,000. The loan is unsecured, due on demand and does not bear interest.

Note 2 - Basis of Presentation_

Note 2 - Basis of Presentation: Interim Financial Statements (Policies)	3 Months Ended
	Mar. 31, 2016
Policies
Interim Financial Statements	Interim financial statements The unaudited interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which, in the opinion of management, are necessary for fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2015 and notes thereto included in the Company's annual report on Form 10-K. The Company follows the same accounting policies in the preparation of interim reports. Results of operations for the interim periods are not indicative of annual results.

Note 2 - Basis of Presentatio17

Note 2 - Basis of Presentation: Reclassification (Policies)	3 Months Ended
	Mar. 31, 2016
Policies
Reclassification	Reclassification Certain amounts from prior periods have been reclassified to conform to the current period presentation.

Note 2 - Basis of Presentatio18

Note 2 - Basis of Presentation: Concentrations (Policies)	3 Months Ended
	Mar. 31, 2016
Policies
Concentrations	Concentrations The Company had five major customers which generated approximately 66% (23%, 16%, 10%, 9% and 8%) of total revenue in the three months ended March 31, 2016.

Note 4 - Contingencies_ Conting

Note 4 - Contingencies: Contingencies (Policies)	3 Months Ended
	Mar. 31, 2016
Policies
Contingencies	Contingencies On December 28, 2015 Patrick Deparini, the Company’s former CFO resigned. Mr. Deparini purports his resignation was made pursuant to a termination clause for other than cause if he is required to undertake other responsibilities other then set forth in his employment agreement. Mr., Deparini claims through the date of his resignation he is owed a total of $154,000 in unreimbursed compensation, $575 in accrued authorized expenses and the remaining balance of his base salary as defined in the employment agreement in the amount of $179,000. As of December 31, 2015 the Company has accrued a total of $125,575. If litigation is commenced the Company will attempt a reasonable out-of-court settlement and if such efforts are not successful, will defend the litigation. On November 6, 2015 Daniel Sullivan sent a wage claim demand. Mr. Sullivan purports to have had an Independent Contractor Agreement with the Company which provides he is entitled to certain compensation and to be reimbursed for Company expenses. The demand claims unpaid compensation in the amount of $8,055 and unreimbursed expenses in the amount of $154,409. The Company denies the agreement was ever signed. As of December 31, 2015 the Company accrued a total of $88,968. If litigation is commenced the Company will attempt a reasonable out-of-court settlement and if such efforts are not successful, will defend the litigation. Mile High Real Estate Group, an entity owned by Mr. Sullivan, sent correspondence stating the Mr. Sullivan and/or Mile High Real Estate loaned the Company either directly or directly to contractors, material suppliers or utilities for operating and building remodeling in the amount of $98,150. Counsel for Mr. Sullivan stated that he was still compiling information. The Company is investigating whether Mr. Sullivan and/or Mile High Real Estate Group ever made the alleged loans. If the alleged loan was actually made, the Company will seek an out-of-court settlement. As of December 31, 2015 the Company accrued a total of $98,150.

Note 5 - Fixed Assets and Con20

Note 5 - Fixed Assets and Construction in Progress: Property, Plant and Equipment (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Property, Plant and Equipment	March 31, 2016 December 31, 2015 Automotive vehicles $ 173,926 $ 173,926 Furniture and equipment 46,068 46,068 Fixed assets, total 219,994 219,994 Total : accumulated depreciation (79,643 ) (69,084 ) Fixed assets, net (Machinery and equipment, net) $ 140,351 $ 150,910

Note 6 - Notes Payable_ Schedul

Note 6 - Notes Payable: Schedule of Maturities of Long-term Debt (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Maturities of Long-term Debt	Payment date on or before Payment Amount May 27, 2016 $ 69,600 June 26, 2016 $ 75,400 July 26, 2016 $ 78,300

Note 10 - Warrants and Options_

Note 10 - Warrants and Options: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Share-based Compensation, Stock Options, Activity	Number Of Shares Weighted-Average Exercise Price Outstanding at December 31, 2015 17,256,738 $ 0.14 Exercised - $ 0.00 Cancelled (246,667 ) $ 0.21 Outstanding at March 31, 2016 17,010,071 $ 0.14 Options exercisable at December 31, 2015 8,150,896 $ 0.19 Options exercisable at March 31, 2016 8,150,896 $ 0.19

Note 10 - Warrants and Option23

Note 10 - Warrants and Options: Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity (Tables)	3 Months Ended
	Mar. 31, 2016
Tables/Schedules
Schedule of Share-based Compensation, Stock Options and Stock Appreciation Rights Award Activity	OPTIONS OUTSTANDING AND EXERCISABLE AT MARCH 31, 2016 Range of Exercise Prices Number of Options Outstanding Weighted-Average Remaining Contractual Life in Years Weighted- Average Exercise Price Number Exercisable Weighted- Average Exercise Price $ 0.035 – 1.00 17,010,071 4.28 $ 0.14 8,150,896 $ 0.19 17,010,071 4.28 $ 0.14 8,150,896 $ 0.19 OPTIONS OUTSTANDING AND EXERCISABLE AT DECEMBER 31, 2015 Range of Exercise Prices Number of Options Outstanding Weighted-Average Remaining Contractual Life in Years Weighted- Average Exercise Price Number Exercisable Weighted- Average Exercise Price $ 0.035 – 1.00 17,256,738 4.47 $ 0.14 8,150,896 $ 0.19 17,256,738 4.47 $ 0.14 8,150,896 $ 0.19

Note 1 - History and Organiza24

Note 1 - History and Organization of The Company (Details) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Details
Preferred Stock, Shares Authorized	100,000,000	100,000,000
Preferred Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	1,400,000,000	1,400,000,000
Common Stock, Par Value	$ 0.001	$ 0.001

Note 3 - Going Concern (Details

Note 3 - Going Concern (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Details
Net loss	$ 400,381	$ 371,460
Cumulative Earnings (Deficit)	$ 1,850,603

Note 5 - Fixed Assets and Con26

Note 5 - Fixed Assets and Construction in Progress: Property, Plant and Equipment (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Details
Furniture and Fixtures, Gross	$ 46,068	$ 46,068
Machinery and equipment, net	$ 140,351	$ 150,910

Note 5 - Fixed Assets and Con27

Note 5 - Fixed Assets and Construction in Progress (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Details
Depreciation	$ 10,559	$ 10,277
Construction in progress	$ 1,209,173		$ 1,147,139

Note 6 - Notes Payable (Details

Note 6 - Notes Payable (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Details
Amortization of discounts on notes payable	$ 56,756	$ 12,655

Note 8 - Long Term Notes Paya29

Note 8 - Long Term Notes Payable (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Details
Notes Payable, Noncurrent	$ 675,000
Long-term debt	$ 11,795	$ 12,836

Note 9 - Stockholders' Equity (

Note 9 - Stockholders' Equity (Details) - shares	Mar. 31, 2016	Dec. 31, 2015
Details
Preferred Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Authorized	1,400,000,000	1,400,000,000

Note 10 - Warrants and Options

Note 10 - Warrants and Options (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Details
Stock-based compensation expense	$ 20,466	$ 108,561