Blue Line Protection (BLPG) 10-K 7 Apr 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Jun. 30, 2016
Document and Entity Information:
Entity Registrant Name	Blue Line Protection Group, Inc.
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Trading Symbol	blpg
Amendment Flag	false
Entity Central Index Key	1,416,697
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		125,248,026
Entity Public Float		$ 3,355,000
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	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)		Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and equivalents		$ 0	$ 16,211
Accounts receivable		16,015	51,251
Accrued receivables		117,683	73,995
Prepaid expenses and deposits		85,888	20,669
Total current assets		219,586	162,126
Fixed assets:
Machinery and equipment, net		132,887	150,910
Construction in progress		0	1,147,139
Fixed assets of discontinued operations		2,782	2,782
Total fixed assets		135,669	1,300,831
Total assets		355,255	1,462,957
Current liabilities:
Cash overdraft		30,462	0
Accounts payable and accrued liabilities		416,573	332,169
Notes payable		185,000	75,000
Notes payable - related parties		385,846	213,347
Convertible notes payable - related parties, net of unamortized discount		610,000	283,385
Current portion of long-term debt		4,137	679,062
Current liabilities of discontinued operations		1,335	1,335
Total current liabilities		1,633,353	1,584,298
Long-term liabilities:
Long-term debt		8,664	12,836
Total long term liabilities		8,664	12,836
Total liabilities		1,642,017	1,597,134
Stockholders' deficit:
Preferred Stock		20,000	0
Common Stock		127,348	125,348
Common Stock, owed but not issued	[1]	13	13
Additional paid-in capital		5,537,667	4,276,291
Accumulated deficit		(6,971,790)	(4,535,829)
Total stockholders' deficit		(1,286,762)	(134,177)
Total liabilities and stockholders' deficit		$ 355,255	$ 1,462,957
[1]	12,923 shares.

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Dec. 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	20,000,000	0
Preferred Stock, Shares Outstanding	20,000,000	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	127,348,026	125,348,026
Common Stock, Shares Outstanding	127,348,026	125,348,026

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Statement of Income
Revenue	$ 2,821,187	$ 2,618,849
Cost of revenue	(2,420,634)	(2,227,176)
Gross profit	400,553	391,673
Operating expenses:
Advertising	12,480	30,502
Depreciation	67,094	41,912
General and administrative expenses	2,011,628	1,500,382
Loss of disposal of assets	312,053	0
Total expenses	2,403,255	1,572,796
Operating loss	(2,002,702)	(1,181,123)
Other income (expenses):
Interest expense	(433,259)	(84,484)
Interest income	0	3,106
Gain on Forgiveness of debt	0	2,000
Total other expenses	(433,259)	(79,378)
Net loss from continuing operations	(2,435,961)	(1,260,501)
Net loss from discontinued operations	0	(54,906)
Net loss	(2,435,961)	(1,315,407)
Deemed dividend on Series A convertible preferred stock	(114,229)	0
Net loss attributable to common stockholders	$ (2,550,190)	$ (1,315,407)
Net loss per common share: Basic and Diluted Continuing operations	$ (0.02)	$ (0.01)
Net loss per common share: Basic and Diluted Discontinued operations	0	0
Net loss per common share	$ (0.02)	$ (0.01)
Weighted average number of common shares outstanding - Basic and Diluted	126,231,238	124,545,378

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Stock Payable	Accumulated Deficit	Stockholders' Equity (Deficit)
Balance, Value at Dec. 31, 2014		$ 0	$ 122,845	$ 3,480,934	$ 749	$ (3,220,422)	$ 384,106
Balance, Shares at Dec. 31, 2014		0	122,845,282	0	0	0	0
Common stock issued for cash, Value		$ 0	$ 400	$ 49,600	$ 0	$ 0	$ 50,000
Common stock issued for cash, Shares		0	400,000	0	0	0	0
Common stock issued for services, Value		$ 0	$ 3,267	$ 521,900	$ 0	$ 0	$ 525,167
Common stock issued for services, Shares		0	3,266,667	0	0	0	0
Common stock issued for stock payable, Value		$ 0	$ 736	$ 0	$ (736)	$ 0	$ 0
Common stock issued for stock payable, Shares		0	736,077	0	0	0	0
Common stock issued with note, Value		$ 0	$ 100	$ 14,286	$ 0	$ 0	$ 14,386
Common stock issued with note, Shares		0	100,000	0	0	0	0
Beneficial conversion feature on convertible note		$ 0	$ 0	$ 187,800	$ 0	$ 0	$ 187,800
Common stock issued for exchange of stock options, Value		$ 0	$ (2,000)	$ 2,000	$ 0	$ 0	$ 0
Common stock issued for exchange of stock options, Shares		0	(2,000,000)	0	0	0	0
Amortization of employee stock options		$ 0	$ 0	$ 19,771	$ 0	$ 0	$ 19,771
Preferred stock issued for cash, Shares at Dec. 31, 2015		0	0	0	0	0	0
Deemed dividend on convertible preferred stock		$ 0	$ 0	$ 0	$ 0	$ 0	$ 0
Profit (loss)		0	0	0	0	(1,315,407)	(1,315,407)
Balance, Value at Dec. 31, 2015		$ 0	$ 125,348	$ 4,276,291	$ 13	$ (4,535,829)	$ (134,177)
Balance, Shares at Dec. 31, 2015	125,348,026	0	125,348,026	0	0	0	0
Common stock issued for services, Value		$ 0	$ 2,000	$ 86,000	$ 0	$ 0	$ 88,000
Common stock issued for services, Shares		0	2,000,000	0	0	0	0
Beneficial conversion feature on convertible note		$ 0	$ 0	$ 2,240	$ 0	$ 0	$ 2,240
Amortization of employee stock options		$ 0	$ 0	$ 248,136	$ 0	$ 0	$ 248,136
Preferred stock issued for cash, Shares at Dec. 31, 2016		20,000,000	0	0	0	0	0
Deemed dividend on convertible preferred stock		$ 0	$ 0	$ (114,229)	$ 0	$ 0	$ (114,229)
Profit (loss)		0	0	0	0	(2,435,961)	(2,435,961)
Balance, Value at Dec. 31, 2016		$ 20,000	$ 127,348	$ 5,537,667	$ 13	$ (6,971,790)	$ (1,286,762)
Balance, Shares at Dec. 31, 2016	127,348,026	20,000,000	127,348,026	0	0	0	0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating activities
Net loss	$ (2,435,961)	$ (1,315,407)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	67,094	41,912
Loss on sale of building	312,053	0
Stock-based compensation expense	248,136	544,938
Common stock issued for services	88,000	0
Amortization of discount on note payable	265,745	70,571
Penalty interest	71,684	0
Forgiveness of notes payable	0	(2,000)
Changes in operating assets and liabilities:
(Increase) in accounts receivable	(8,452)	(8,355)
(Increase) in deposits and prepaid expenses	(98,069)	(18,169)
Increase in accounts payable and accrued liabilities	19,893	2,545
Increase in long-term liabilities	0	1,335
Net cash used in operating activities	(1,469,877)	(682,630)
Cash flows from investing activities
Receipt of payments from notes receivable	0	46,451
Purchase of fixed assets	(28,202)	(3,384)
Purchase of fixed assets from discontinued operations	0	(2,782)
Cash proceeds from sale of building	722,319	0
Construction of building	(485,665)	(14,824)
Net cash provided by investing activities	208,452	25,461
Financing activities
Cash overdraft (increase/decrease)	30,462	0
Proceeds from notes payable - related party	307,500	113,575
Repayments from notes payable - related party	(135,002)	(188,500)
Proceeds from notes payable	532,360	75,000
Repayment of notes payable	(544,000)	(3,617)
Proceeds from convertible notes payable - related party	195,000	415,000
Proceeds from convertible notes payable	157,750	0
Repayments of convertible notes payable	(168,000)	0
Penalty payments	(71,684)	0
Principal payments on auto debt	(4,172)	0
Issuances of preferred stock	945,000	0
Issuances of common stock	0	50,000
Net cash provided by financing activities	1,245,214	461,458
Net decrease in cash	(16,211)	(195,711)
Cash - beginning	16,211	211,922
Cash - ending	0	16,211
Supplemental disclosures of cash flow information:
Interest paid	53,436	0
Income taxes paid	0	0
Non-cash investing and financing activities:
Deemed dividend on preferred stock	$ 114,229	$ 0

Note 1 - History and Organizati

Note 1 - History and Organization of The Company	12 Months Ended
	Dec. 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 capital of the Company concurrently increased to 1,400,000,000 shares of common stock. All references to share and per share amounts in the consolidated financial statements and accompanying notes thereto have been retroactively restated to reflect the forward stock split. The Company provides armed protection, 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, financial services, such as handling transportation and storage of currency; training; and compliance services.

Note 2 - Accounting Policies an

Note 2 - Accounting Policies and Procedures	12 Months Ended
	Dec. 31, 2016
Notes
Note 2 - Accounting Policies and Procedures	Note 2 – Accounting policies and procedures Principles of consolidation For the years ended December 31, 2016 and 2015, the consolidated financial statements include the accounts of Blue Line Protection Group, Inc. (formerly The Engraving Masters, Inc.), Blue Line Advisory Services, Inc. (a Nevada corporation; "BLAS"), Blue Line Capital, Inc. (a Colorado corporation; "Blue Line Capital"), Blue Line Protection Group (California), Inc. (a California corporation; "Blue Line California"), Blue Line Colorado, Blue Line Protection Group Illinois, Inc. (an Illinois corporation; "Blue Line Illinois"), BLPG, Inc. (a Nevada corporation; "Blue Line Nevada"), Blue Line Protection Group (Washington), Inc. (a Washington corporation; "Blue Line Washington"). All significant intercompany balances and transactions have been eliminated. BLPG and its subsidiaries are collectively referred herein to as the "Company." Basis of presentation The financial statements present the balance sheets, statements of operations, stockholder's equity (deficit) and cash flows of the Company. The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company has adopted December 31 as its fiscal year end. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash and cash equivalents The Company maintains a cash balance in a non-interest-bearing account that currently does not exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. There were no cash equivalents as of December 31, 2016 and 2015. Accounts receivable Accounts receivable are stated at the amount the Company expects to collect from outstanding balances and do not bear interest. The Company provides for probable uncollectible amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable; however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in the future. On a periodic basis, management evaluates its accounts receivable and determines the requirement for an allowance for doubtful accounts based on its assessment of the current and collectible status of individual accounts with past due balances over 90 days. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote. Allowance for uncollectible accounts The Company estimates losses on receivables based on known troubled accounts, if any, and historical experience of losses incurred. There was no allowance for doubtful customer receivables at December 31, 2016 and 2015. Property and equipment Property and equipment is recorded at cost and capitalized from the initial date of service. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows: Automotive Vehicles 5 years Furniture and Equipment 7 years Buildings and Improvements 15 years The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment there was no impairment as December 31, 2016 and 2015. Depreciation expense for the years ended December 31, 2016 and 2015 totaled $67,094 and $41,912, respectively. Impairment of long-lived assets The Company accounts for its long-lived assets in accordance with ASC Topic 360-10-05, "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost or carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and its fair value or disposable value. As of December 31, 2016 and 2015, the Company determined that none of its long-term assets were impaired. Concentration of business and credit risk The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. The Company's financial instruments that are exposed to concentration of credit risks consist primarily of cash. The Company maintains its cash in bank accounts, which may at times, exceed federally insured limits. The Company had two major customers which generated approximately 40% (25% and 15%) of total revenue in the year ended December 31, 2016. The Company had four major customers which generated approximately 49% (15%, 12%, 12% and 10%) of total revenue in the year ended December 31, 2015. Related party transactions FASB ASC 850, "Related Party Disclosures" requires companies to include in their financial statements disclosures of material related party transactions. The Company discloses all material related party transactions. Related parties are defined to include any principal owner, director or executive officer of the Company and any immediate family members of a principal owner, director or executive officer. Fair value of financial instruments The carrying amounts reflected in the balance sheets for cash, accounts payable and related party payables approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale. As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). Revenue recognition The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of its fees is reasonably assured. Advertising costs The Company expenses all costs of advertising as incurred. There were $12,480 and $30,502 in advertising costs for the years ended December 31, 2016 and 2015, respectively. General and administrative expenses The significant components of general and administrative expenses consist mainly of legal and professional fees and compensation. Stock-based compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, "Compensation – Stock Compensation." FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the employee's requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees. The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC 505-50, "Equity-Based Payments to Non-Employees", which requires that such equity instruments are recorded at their fair value on the measurement date, with the measurement of such compensation being subject to periodic adjustment as the underlying equity instruments vest. Cost of Revenue The Company's cost of revenue primarily consists of labor, fuel costs and items purchased by the Company specifically purposed for the benefit of the Company's client. Basic and Diluted Earnings per share Net loss per share is provided in accordance with FASB ASC 260-10, "Earnings per Share". Basic loss per share is computed by dividing losses available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive. Dividends The Company has not yet adopted any policy regarding payment of dividends. No dividends have been paid or declared since inception. Income Taxes The Company follows FASB Codification Topic 740-10-25 (ASC 740-10-25) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. Recent Pronouncements The Company evaluated all recent accounting pronouncements issued and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company.

Note 3 - Going Concern

Note 3 - Going Concern	12 Months Ended
	Dec. 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 $2,435,961 for the year ended December 31, 2016, accumulated deficit of $6,971,790 and had a working capital deficit of $1,413,767 as of December 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 - Commitments and Contin

Note 4 - Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Notes
Note 4 - Commitments and Contingencies	Note 4 – Commitments and 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, 2016 and 2015 the Company has accrued a total of $125,575 contingent liabilities. On February 6, 2017, The Company received a Notification of Wage Claim from the State of Nevada Department of Business & Industry Office of the Labor Commissioner stating that Patrick Deparini had filed a claim for unpaid wages with the Office of the Labor Commissioner (the "Commissioner"). The notification states that Mr. Deparini maintains he was not paid for all hours worked between February 3, 3015 and December 28, 2015 for a total amount owed of $99,000. The Company disputed Mr. Deparini's claim with the Commissioner and responded by explaining to the Commissioner that Mr. Deparini improperly categorized his dispute with the Company as a wage claim, which it is not. 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, 2016 and 2015 the Company accrued a total of $88,968 contingent liabilities. 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, 2016 and 2015 the Company accrued a total of $98,150. 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 agreed to issue 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. The Company cancelled the agreement and is of the opinion that the shares are not owed to the consultant. As of December 31, 2016 there was no payable recorded. Leases On February 15, 2014 the Company entered into a sublease agreement for approximately 2,000 square feet of office space on a month to month basis contingent on the lessor's master lease for the premises. The lease amount adjusts yearly and the current lease is $1,614 per month. On October 27, 2016 the Company sold its building located at 5765 Logan Street, Denver, Colorado to an unrelated third party for $1,400,000. The Company repaid the mortgage on the building in the amount of $677,681. After the sale, the Company leased the building from the purchaser of the property. The lease is for an initial term of ten years, with the Company having the option to extend the term of the lease for two additional five year periods. The lease requires rental payments of $10,000 per month and will increase 2% annually. The Company paid a $30,000 deposit at the inception of the lease. Future minimum lease payments 2017 $ 120,200 2018 122,604 2019 125,056 2020 127,557 2021 130,108 2022 and thereafter 654,539 Total minimum lease payments $ 1,280,064

Note 5 - Fixed Assets and Const

Note 5 - Fixed Assets and Construction in Progress	12 Months Ended
	Dec. 31, 2016
Notes
Note 5 - Fixed Assets and Construction in Progress	Note 5 – Fixed assets and construction in progress Machinery and equipment consisted of the following at: December 31, December 31, 2016 2015 Automotive vehicles $ 194,882 $ 173,926 Furniture and equipment 53,314 46,068 Fixed assets, total 248,196 219,994 Total : accumulated depreciation (115,309 ) (69,084 ) Fixed assets, net $ 132,887 $ 150,910 Total depreciation expenses for the years ended December 31, 2016 and 2015 were $67,094 and $41,912, 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 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 September 30, 2016, the Company has completed the construction on the property and it was available and ready for use, accordingly. As of December 31, 2016 and 2015, the balance of construction in progress was $1,147,139 and $0, respectively. During the years ended December 31, 2016 and 2015, $14,078 and $33,762 of interest expense was capitalized as construction in progress. On October 27, 2016 the Company sold its building located at 5765 Logan Street, Denver, Colorado to an unrelated third party for $1,313,961 net of closing cost of $86,039.Up till the date of sale the Company had recorded depreciation expense on the building of $20,868. The Company repaid the mortgage on the building in the amount of $677,681 and recognized a loss on the sale of the building of $312,053. The Company received net cash proceeds of $722,319. After the sale, the Company leased the building from the purchaser of the property (see Note 4).

Note 6 - Discontinued Operation

Note 6 - Discontinued Operations	12 Months Ended
	Dec. 31, 2016
Notes
Note 6 - Discontinued Operations	Note 6 – Discontinued Operations Effective September 30, 2015, the Company ceased operations of Blue Line Advisory Services, Inc. The following table summarizes the assets and liabilities of discontinued operations and the loss from discontinued operations: December 31, 2015 Assets of discontinued operations: Fixed assets $ 2,782 Total assets held for disposal $ 2,782 Liabilities of discontinued operations: Accounts payable 1,335 Total liabilities held for disposal $ 1,335 Income and Expenses of Discontinued Operations For the Year Ended December 31, 2015 Revenue $ 67,920 Costs of revenue $ 52,222 General and administrative expenses $ 70,604 Loss from discontinued operations $ (54,906)

Note 7 - Notes Payable

Note 7 - Notes Payable	12 Months Ended
	Dec. 31, 2016
Notes
Note 7 - Notes Payable	Note 7 – Notes payable Notes payable to non-related parties 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 originally due in full on July 31, 2016. On June 30, 2016, the Company extended the maturity date to October 31, 2016. Interest is paid monthly, in arrears, in the amount of $2,813 beginning August 31, 2014. On October 27, 2016 the Company sold its building located at 5765 Logan Street, Denver, Colorado to an unrelated third party for $1,400,000. The Company repaid the mortgage on the building in the amount of $677,681 and interest of $2,866. As of December 31, 2015, the principal balance was $675,000 and a total of $49,292, in interest payments have been made. 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 December 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 December 31, 2016 and December 31, 2015, the principal balance owed on this loan was $25,000 and $25,000, respectively. 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 December 31, 2016 was $10,000. On February 23, 2016 the Company signed a Merchant Agreement with a lender. Under the agreement the Company 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 with 14% interest per year. 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. During the year ended December 31, 2016, the Company fully repaid the loan in the amount of $264,000 and amortized the debt discount of $70,000. There was no outstanding balance as of December 31, 2016. 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 March 27, 2017. The Company paid $8,640 in fees in connection with this loan. During the year ended December 31, 2016, the Company fully repaid the loan in the amount of $144,000 and amortized the debt discount of $8,640. There was no outstanding balance as of December 31, 2016. On August 8, 2016 the Company signed a Merchant Agreement with a lender. Under the agreement we received $100,000 in exchange for rights to all customer receipts until the lender is paid $136,000, which is collected at the rate of $810 per business day with a 14% interest rate per year. The payments were secured by second position rights to all customer receipts until the loan has been paid in full. The Company paid $2,000 in fees in connection with this loan. During the year ended December 31, 2016, the Company repaid the loan in the amount of $136,000 and amortized the debt discount of $38,000. There was no outstanding balance as of December 31, 2016. On September 21, 2016, the Company borrowed $100,000 from a non-affiliated person. The loan was due and payable on December 21, 2016 and bore interest at 60% per year. The lender extended the loan and waived the default fee of 120%. The note was subsequently repaid. The principal balance owed on this loan at December 31, 2016 was $100,000. The Company paid $5,000 in fees in connection with this loan. During the year ended December 31, 2016 the Company amortized the debt issuance costs $5,000. As of December 31, 2016, the principal balance owed on this loan was $100,000. 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 Company is amortizing the debt discount of $3,000 over the term of the loan. For the year ended December 31, 2016, the Company recorded amortization expenses of $3,000. 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 was funded on February 3, 2016, and the note is not convertible till 180 days after the issuance date, which is August 1, 2016. The Company repaid the loan in full on July 27, 2016 with the premium of $20,300 and there was no outstanding balance as of December 31, 2016. 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 Company paid $7,250 in fees in connection with this loan. The Company is amortizing the debt discount of $7,250 over the term of the loan. For the year ended December 31, 2016, the Company recorded amortization expenses of $7,250. 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 August 9, 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. The Company paid premium of $51,384 to postpone the lender's conversion right to August 25, 2016. The Company repaid the loan in full on August 23, 2016 and there was no outstanding balance as of December 31, 2016.

Note 8 - Notes Payable - Relate

Note 8 - Notes Payable - Related Parties	12 Months Ended
	Dec. 31, 2016
Notes
Note 8 - Notes Payable - Related Parties	Note 8 – Notes payable – related parties 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 December 31, 2016 and 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 December 31, 2016 and 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 December 31, 2016 and 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 and repaid $43,000 of the loan. The note is non-interest bearing, and due on demand. As of December 31, 2016 and 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 year ended December 31, 2016, the Company repaid $135,000 and borrowed an additional $135,000 from the same related party. As of December 31, 2016 and 2015, the principal balance owed on this loan was $30,000 and $30,000, respectively. On July 7, 2016, the Company borrowed $73,000 from a related party. The loan was due and payable on July 7, 2017 and bore interest at 5% per annum. The principal balance owed on this loan at December 31, 2016 was $73,000. On August 8, 2016, the Company entered into, an promissory note with Hypur Inc., a Nevada Corporation which is a related party pursuant to which the Company to borrow $52,000. The loan was due and payable on August 10, 2017 and bore interest at 18% per annum. The principal balance owed on this loan at December 31, 2016 was $52,000. On September 20, 2016, the Company borrowed $47,500 from Hypur Inc., which is a related party. The loan is due and payable on December 20, 2016 and bears interest at 18% per annum. The principal balance owed on this loan at December 31, 2016 was $47,500. 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. Upon the occurrence and during the continuation of an event of default, the holder may require the Company to redeem all or any portion of this Note in cash at a price equal to 150% of the principal amount. Through December 31, 2015, the Company borrowed a total of $415,000. During year ended December 31, 2016, we borrowed an additional $20,000 from related party convertible notes. As of December 31, 2016, $415,000 of the notes are past due. Since the debt holder has not elect the right to require the Company to redeem the note at a price equal to 150% of the principal amount, the terms stated prior to maturity are still in effect. As of December 31, 2016 and 2015, the principal balance owed on this Convertible Note is $435,000 and $415,000, respectively. On September 1, 2016, the Company entered into, an convertible promissory note with Hypur Ventures, L.P., a Delaware limited partnership (the "Hypur Ventures") which is a related party pursuant to which the Company to borrow $75,000. The loan was due 180 days from the date of issuance and bears interest at 10% per annum. The note is convertible into common stock at a price of $.05 per share. The note is mandatory redeemable into common stock if the price per share is over $.50 per share during a 10 day period. The principal balance owed on this loan at December 31, 2016 was $75,000. On October 14, 2016, the Company entered into, an convertible promissory note with Hypur Ventures, L.P., a Delaware limited partnership (the "Hypur Ventures") which is a related party pursuant to which the Company to borrow $100,000. The loan was due 180 days from the date of issuance and bears interest at 10% per annum. The note is convertible into common stock at a price of $.05 per share. The note is mandatory redeemable into common stock if the price per share is over $.50 per share during a 10 day period. The principal balance owed on this loan at December 31, 2016 was $100,000. 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 December 31, 2016 and 2015, a total of $133,855 and $56,185, respectively has been amortized and recorded as interest expense, leaving a balance of $0 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 $610,000 and $283,385 as of December 31, 2016 and 2015, respectively.

Note 9 - Long Term Notes Payabl

Note 9 - Long Term Notes Payable	12 Months Ended
	Dec. 31, 2016
Notes
Note 9 - Long Term Notes Payable	Note 9 – Long term notes payable 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 December 31, 2016 and 2015, the total principal balance of the note is $12,801 and $16,898, respectively, of which $8,664 and $12,836 is considered a long-term liability and $4,137 and $4,062 is considered a current liability.

Note 10 - Stockholders' Equity

Note 10 - Stockholders' Equity	12 Months Ended
	Dec. 31, 2016
Notes
Note 10 - Stockholders' Equity	Note 10 – 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. Common stock During the year ended December 31, 2015 the Company sold a total of 400,000 shares of common stock for cash in the amount of $50,000 ($.125 per share). During the year ended December 31, 2015 the Company issued a total of 3,226,667 shares of common stock to various employees and consultant valued at $526,167 as compensation ($.161 per share) During the year ended December 31, 2015 the Company issued a total of 100,000 shares of common stock as additional consideration on a note payable valued at $14,386 ($.144 per share). The $14,386 was recognized as a discount to the note which was fully amortized to interest expense during 2015. During the year ended December 31, 2015 the Company exchanged 2, 000,000 shares of common stock for stock options. During the year ended December 31, 2015, the Company issued 736,077 shares of our common stock for shares committed to be issued during 2014. This amount had previously been recorded as a common stock payable. During the year ended December 31, 2016, the Company entered two consulting agreements for business advisory services. During the year ended December 31, 2016 the Company issued a total of 2,000,000 shares of common stock to the consultant for business advisory services valued at $88,000. The certificate for these shares was issued subsequent to December 31, 2016. Preferred stock On May 3, 2016, the Company entered into, an agreement with Hypur Ventures, L.P., a Delaware limited partnership (the "Hypur Ventures") which is a related party pursuant to which the Company sold to Hypur Ventures, in a private placement, 10,000,000 shares of the Company's preferred stock and 5,000,000 common stock warrants with a five year term and an exercise price of $0.10, at a purchase price of $0.05 per share for gross proceeds of $500,000. The shares of preferred stock are convertible into shares of the Company's common stock. The preferred stock shall have such other rights, preferences and privileges to be set forth in a certificate of designation to be filed with the Secretary of State. The Company evaluated the convertible preferred stock under FASB ASC 470-20-30 and determined it contained a beneficial conversion feature. The intrinsic value of the beneficial conversion feature was determined to be $114,229. The beneficial conversion feature was fully amortized and recorded as a deemed dividend. Between July and August of 2016 Hypur Ventures purchased an additional 10,000,000 shares of the Company's preferred stock and 5,000,000 common stock warrants with a five year term and an exercise price of $0.10, at a purchase price of $0.05 per share for net proceeds of $445,000, net of legal fees of $55,000. The shares of preferred stock are convertible into shares of the Company's common stock. The preferred stock shall have such other rights, preferences and privileges to be set forth in a certificate of designation to be filed with the Secretary of State. The Company evaluated the convertible preferred stock under FASB ASC 470-20-30 and determined it does not contain a beneficial conversion feature. The intrinsic value of the beneficial conversion feature was determined to be $0.The preferred stock is convertible at any time at the election of Hypur Ventures. The preferred stock shall automatically convert to common stock if the closing price of the Company's common stock equals or exceeds $.50 per share over any consecutive twenty day trading period. The preferred stock terms include a one-time purchase price preference. No preferential dividends apply to the preferred stock. The preferred stock attributes include weighted average anti-dilution protection, rights to appoint one director, pre-emptive rights to purchase future offerings of securities by the Company, demand and piggy-back registration rights. The preferred stock is convertible at any time at the election of Hypur Ventures. The preferred stock shall automatically convert to common stock if the closing price of the Company's common stock equals or exceeds $.50 per share over any consecutive twenty day trading period. The preferred stock terms include a one-time purchase price preference. No preferential dividends apply to the preferred stock. The preferred stock attributes include weighted average anti-dilution protection, rights to appoint one director, pre-emptive rights to purchase future offerings of securities by the Company, demand and piggy-back registration rights. The Company has reserved thirty million shares of common stock that may be issued upon the conversion and/or exercise of the preferred stock and the warrants. The preferred stock sold to Hypur Ventures will be subject to the terms and conditions of the Certificate of Designation, as well as further documentation to be drafted in accordance with the terms and conditions agreed upon between the Company and Hypur Ventures. Restricted Stock Units The Company measures all employee share-based payment awards using a fair-value method. The Company has a policy of issuing new shares to satisfy stock option exercises and issuance of stock awards. A summary of the Company's Restricted Stock Unit (RSU) activity and related information for 2015 is as follow: NumberOf SUs Weighted-Average Grant Date Fair Value Per Share Balance at December 31, 2014 0 $ 0.00 Granted 9,050,000 $ 0.16 Vested 3,266,667 $ 0.16 Cancelled (5,783,333 ) $ 0.16 Balance at December 31, 2015 -- $ 0.16 On April 24, 2015, the Company issued 1,000,000 shares of its common stock as Restricted Stock Units to a director of a subsidiary company as compensation. During 2015, the Company entered into a Settlement Agreement with this subsidiary director, whereby, subject to the terms and conditions of the settlement, the parties mutually rescinded all prior existing agreements between them, as well as all compensatory arrangements set forth therein and the director returned 750,000 shares to the Company for cancellation. During the year ended December 31, 2015, the Company recorded $42,500of share-based compensation expense related to the shares vested under the original director agreement. On May 1, 2015, the Company issued an aggregate of 2,050,000 shares of its common stock as Restricted Stock Units to employees as incentive compensation. During 2015, the Company entered into Settlement Agreements with certain of these employees, whereby, subject to the terms and conditions of the settlements, the parties mutually rescinded all prior existing agreements between them, as well as all compensatory arrangements set forth therein and returned 1,033,333 shares to the Company for cancellation. During the year ended December 31, 2015, the Company recorded $162.667 of share-based compensation expense related to the shares vested under the original employment agreements. On May 1, 2015, the Company issued Restricted Stock Units to an employee pursuant to the satisfaction of performance conditions of his employment agreement. The employee is eligible to earn up to an aggregate of 6,000,000 restricted stock units in accordance with the following schedule: (a) 2,000,000 shares upon the Company realizing consolidated revenue of $1,000,000 and (b) an additional 2,000,000 shares for each additional $1,000,000 of consolidated revenue up to a maximum of an additional 4,000,000 shares. As of May 1, 2015, the Company issued 2,000,000 shares of its common stock to this employee. The fair market value of the common stock on the date of issuance was $0.16 per share. The Company recognized compensation expense in the amount of $320,000 during the year ended December 31, 2015. This award was modified during November 2015 and the 2,000,000 previously issued common shares were exchanged for 4,500,000 common stock options. Total stock-based compensation expense in connection with restricted stock units granted to employees recognized in the consolidated statement of operations for year ended December 31, 2016 and 2015 was $0 and $525,167, respectively.

Note 11 - Options and Warrants

Note 11 - Options and Warrants	12 Months Ended
	Dec. 31, 2016
Notes
Note 11 - Options and Warrants	Note 11 – Options and warrants 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. During the year ended December 31, 2015 the Company granted a total of 1,410,000 stock options at prices ranging from $.05 -$.23 to various employees. The options vest over three years and carry a life of five years. On July 28, 2015, the Company issued stock options to an officer of the Company to purchase 6,328,764 shares of the Company's common stock at an exercise price of $0.034 per share. The options vest over three years, with the first third immediately vested. The options carry a life of five years. During the year ended December 31, 2015 the Company granted a total of 5,336,238 additional stock options as a result of the modification of previously granted options and restricted stock unit awards. During the year ended December 31, 2015 a total of 7,705,164 stock options were forfeited by various employees of the Company. On December 28, 2016, the Company issued stock options to various offices and employees of the Company to purchase 7,950,000 shares of the Company's common stock at an exercise price of $0.05 per share. The options vest immediately. The options carry a life of three years. During the year ended December 31, 2016 a total of 453,333 stock options were forfeited by various employees of the Company. The following is a summary of the Company's stock option activity for the years ended December 31, 2016 and 2015: NumberOf Shares Weighted-Average Exercise Price Outstanding at December 31, 2014 11,886,900 $ 0.29 Granted 7,738,764 $ 0.06 Granted as a result of modified awards 5,336,238 $ 0.06 Exercised - $ 0.00 Cancelled (7,705,164 ) $ 0.29 Outstanding at December 31, 2015 17,256,738 $ 0.14 Granted 7,950,000 $ 0.05 Exercised - $ 0.00 Cancelled (453,333 ) $ 0.18 Outstanding at December 31, 2016 24,753,405 $ 0.11 Options exercisable at December 31, 2015 8,150,896 $ 0.19 Options exercisable at December 31, 2016 20,000,484 $ 0.11 The following tables summarize information about stock options outstanding and exercisable at December 31, 2016 and December 31, 2015: OPTIONS OUTSTANDING AND EXERCISABLE AT DECEMBER 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 24,753,405 3.313 $ 0.11 20,000,484 $ 0.11 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 Total stock-based compensation expense in connection with options and modified awards recognized in the consolidated statement of operations for years ended December 31, 2016 and 2015 was $248,136 and $19,771, respectively. Warrants The following is a summary of the Company's warrant activity for the years ended December 31, 2016: Number Of Shares Weighted-Average Exercise Price Outstanding at December 31, 2015 - $ - Granted 5,000,000 $ 0.10 Exercised - $ - Cancelled - $ - Outstanding at December 31, 2016 5,000,000 $ 0.10 Options exercisable at December 31, 2016 5,000,000 $ 0.10 The following tables summarize information about warrants outstanding and exercisable at December 31, 2016 and December 31, 2015: WARRANTS OUTSTANDING AND EXERCISABLE AT DECEMBER 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 $ 0.10 5,000,000 4.49 $ 0.10 5,000,000 $ 0.10

Note 12 - Income Taxes

Note 12 - Income Taxes	12 Months Ended
	Dec. 31, 2016
Notes
Note 12 - Income Taxes	Note 12 – Income taxes For the years ended December 31, 2016 and 2015, the Company incurred net operating losses and, accordingly, no provision for income taxes has been recorded. In addition, no benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. At December 31, 2016 and 2015, the Company had approximately $4,718,279 and $3,224,320 of federal and state net operating losses. The net operating loss carry forwards, if not utilized, will begin to expire in 2028. The provision for income taxes consisted of the following components for the years ended December 31: Components of net deferred tax assets, including a valuation allowance, are as follows at December 31: December 31 2016 2015 Deferred tax assets: Net operating loss carry forwards $ 1,651,398 $ 1,128,512 Valuation allowance (1,651,398 ) (1,128,512 ) Total deferred tax assets $ - $ - The valuation allowance for deferred tax assets as of December 31, 2016 and 2015 was $1,651,398 and $1,128,512, respectively. In assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of future deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. As a result, management determined it was more likely than not the deferred tax assets would not be realized as of December 31, 2016 and 2015 and recorded a full valuation allowance. Reconciliation between the statutory rate and the effective tax rate is as follows at December 31: 2016 & 2015 Federal statutory tax rate (35.0 %) Permanent difference and other 35.0 %

Note 13 - Subsequent Events

Note 13 - Subsequent Events	12 Months Ended
	Dec. 31, 2016
Notes
Note 13 - Subsequent Events	Note 13 – Subsequent Events On January 4, 2017 the Company borrowed $125,000 from an unrelated third party. The loan has a maturity date of October 28, 2017 and bears interest at the rate of 8% per year. If the loan is not paid when due, any unpaid amount will bear interest at 21% per year. The Lender is entitled, at its option, at any time after October 28, 2017 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 five lowest trading prices for the 25 trading days immediately preceding the conversion date. On March 7, 2017, the Company borrowed $100,000 from Hypur Ventures, L.P., a related party. The loan is due 180 days from March 7, 2017 and bears interest at 10% per annum. The loan is convertible into shares of the Company's common stock at a price of $.05 per share. The loan will automatically convert into shares of the Company's common stock if the price of the Company's common stock is over $.50 per share during any ten-day period.

Note 2 - Accounting Policies 20

Note 2 - Accounting Policies and Procedures: Principles of Consolidation (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Principles of Consolidation	Principles of consolidation For the years ended December 31, 2016 and 2015, the consolidated financial statements include the accounts of Blue Line Protection Group, Inc. (formerly The Engraving Masters, Inc.), Blue Line Advisory Services, Inc. (a Nevada corporation; "BLAS"), Blue Line Capital, Inc. (a Colorado corporation; "Blue Line Capital"), Blue Line Protection Group (California), Inc. (a California corporation; "Blue Line California"), Blue Line Colorado, Blue Line Protection Group Illinois, Inc. (an Illinois corporation; "Blue Line Illinois"), BLPG, Inc. (a Nevada corporation; "Blue Line Nevada"), Blue Line Protection Group (Washington), Inc. (a Washington corporation; "Blue Line Washington"). All significant intercompany balances and transactions have been eliminated. BLPG and its subsidiaries are collectively referred herein to as the "Company."

Note 2 - Accounting Policies 21

Note 2 - Accounting Policies and Procedures: Basis of Presentation (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Basis of Presentation	Basis of presentation The financial statements present the balance sheets, statements of operations, stockholder's equity (deficit) and cash flows of the Company. The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America. The Company has adopted December 31 as its fiscal year end.

Note 2 - Accounting Policies 22

Note 2 - Accounting Policies and Procedures: Use of Estimates (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Use of Estimates	Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

Note 2 - Accounting Policies 23

Note 2 - Accounting Policies and Procedures: Cash and Cash Equivalents (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Cash and Cash Equivalents	Cash and cash equivalents The Company maintains a cash balance in a non-interest-bearing account that currently does not exceed federally insured limits. For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. There were no cash equivalents as of December 31, 2016 and 2015.

Note 2 - Accounting Policies 24

Note 2 - Accounting Policies and Procedures: Accounts Receivable (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Accounts Receivable	Accounts receivable Accounts receivable are stated at the amount the Company expects to collect from outstanding balances and do not bear interest. The Company provides for probable uncollectible amounts through an allowance for doubtful accounts, if an allowance is deemed necessary. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing accounts receivable; however, changes in circumstances relating to accounts receivable may result in a requirement for additional allowances in the future. On a periodic basis, management evaluates its accounts receivable and determines the requirement for an allowance for doubtful accounts based on its assessment of the current and collectible status of individual accounts with past due balances over 90 days. Account balances are charged against the allowance after all collection efforts have been exhausted and the potential for recovery is considered remote.

Note 2 - Accounting Policies 25

Note 2 - Accounting Policies and Procedures: Allowance For Uncollectible Accounts (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Allowance For Uncollectible Accounts	Allowance for uncollectible accounts The Company estimates losses on receivables based on known troubled accounts, if any, and historical experience of losses incurred. There was no allowance for doubtful customer receivables at December 31, 2016 and 2015.

Note 2 - Accounting Policies 26

Note 2 - Accounting Policies and Procedures: Property and Equipment (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Property and Equipment	Property and equipment Property and equipment is recorded at cost and capitalized from the initial date of service. Expenditures for major additions and improvements are capitalized and minor replacements, maintenance, and repairs are charged to expense as incurred. When property and equipment is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is included in the results of operations for the respective period. Depreciation is provided over the estimated useful lives of the related assets using the straight-line method for financial statement purposes. The Company uses other depreciation methods (generally accelerated) for tax purposes where appropriate. The estimated useful lives for significant property and equipment categories are as follows: Automotive Vehicles 5 years Furniture and Equipment 7 years Buildings and Improvements 15 years The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment there was no impairment as December 31, 2016 and 2015. Depreciation expense for the years ended December 31, 2016 and 2015 totaled $67,094 and $41,912, respectively.

Note 2 - Accounting Policies 27

Note 2 - Accounting Policies and Procedures: Impairment of Long-lived Assets (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Impairment of Long-lived Assets	Impairment of long-lived assets The Company accounts for its long-lived assets in accordance with ASC Topic 360-10-05, "Accounting for the Impairment or Disposal of Long-Lived Assets." ASC Topic 360-10-05 requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical cost or carrying value of an asset may no longer be appropriate. The Company assesses recoverability of the carrying value of an asset by estimating the future net cash flows expected to result from the asset, including eventual disposition. If the future net cash flows are less than the carrying value of the asset, an impairment loss is recorded equal to the difference between the asset's carrying value and its fair value or disposable value. As of December 31, 2016 and 2015, the Company determined that none of its long-term assets were impaired.

Note 2 - Accounting Policies 28

Note 2 - Accounting Policies and Procedures: Concentration of Business and Credit Risk (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Concentration of Business and Credit Risk	Concentration of business and credit risk The Company has no significant off-balance sheet risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. The Company's financial instruments that are exposed to concentration of credit risks consist primarily of cash. The Company maintains its cash in bank accounts, which may at times, exceed federally insured limits. The Company had two major customers which generated approximately 40% (25% and 15%) of total revenue in the year ended December 31, 2016. The Company had four major customers which generated approximately 49% (15%, 12%, 12% and 10%) of total revenue in the year ended December 31, 2015.

Note 2 - Accounting Policies 29

Note 2 - Accounting Policies and Procedures: Related Party Transactions (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Related Party Transactions	Related party transactions FASB ASC 850, "Related Party Disclosures" requires companies to include in their financial statements disclosures of material related party transactions. The Company discloses all material related party transactions. Related parties are defined to include any principal owner, director or executive officer of the Company and any immediate family members of a principal owner, director or executive officer.

Note 2 - Accounting Policies 30

Note 2 - Accounting Policies and Procedures: Fair Value of Financial Instruments (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Fair Value of Financial Instruments	Fair value of financial instruments The carrying amounts reflected in the balance sheets for cash, accounts payable and related party payables approximate the respective fair values due to the short maturities of these items. The Company does not hold any investments that are available-for-sale. As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

Note 2 - Accounting Policies 31

Note 2 - Accounting Policies and Procedures: Revenue Recognition (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Revenue Recognition	Revenue recognition The Company recognizes revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the service has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of its fees is reasonably assured.

Note 2 - Accounting Policies 32

Note 2 - Accounting Policies and Procedures: Advertising Costs (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Advertising Costs	Advertising costs The Company expenses all costs of advertising as incurred. There were $12,480 and $30,502 in advertising costs for the years ended December 31, 2016 and 2015, respectively.

Note 2 - Accounting Policies 33

Note 2 - Accounting Policies and Procedures: General and Administrative Expenses (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
General and Administrative Expenses	General and administrative expenses The significant components of general and administrative expenses consist mainly of legal and professional fees and compensation.

Note 2 - Accounting Policies 34

Note 2 - Accounting Policies and Procedures: Stock-based Compensation (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Stock-based Compensation	Stock-based compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, "Compensation – Stock Compensation." FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the employee's requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees. The Company accounts for equity instruments issued to non-employees in accordance with the provisions of ASC 505-50, "Equity-Based Payments to Non-Employees", which requires that such equity instruments are recorded at their fair value on the measurement date, with the measurement of such compensation being subject to periodic adjustment as the underlying equity instruments vest.

Note 2 - Accounting Policies 35

Note 2 - Accounting Policies and Procedures: Cost of Revenue (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Cost of Revenue	Cost of Revenue The Company's cost of revenue primarily consists of labor, fuel costs and items purchased by the Company specifically purposed for the benefit of the Company's client.

Note 2 - Accounting Policies 36

Note 2 - Accounting Policies and Procedures: Basic and Diluted Earnings Per Share (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Basic and Diluted Earnings Per Share	Basic and Diluted Earnings per share Net loss per share is provided in accordance with FASB ASC 260-10, "Earnings per Share". Basic loss per share is computed by dividing losses available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted income (loss) per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.

Note 2 - Accounting Policies 37

Note 2 - Accounting Policies and Procedures: Dividends (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Dividends	Dividends The Company has not yet adopted any policy regarding payment of dividends. No dividends have been paid or declared since inception.

Note 2 - Accounting Policies 38

Note 2 - Accounting Policies and Procedures: Income Taxes (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Income Taxes	Income Taxes The Company follows FASB Codification Topic 740-10-25 (ASC 740-10-25) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse.

Note 2 - Accounting Policies 39

Note 2 - Accounting Policies and Procedures: Recent Pronouncements (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Recent Pronouncements	Recent Pronouncements The Company evaluated all recent accounting pronouncements issued and determined that the adoption of these pronouncements would not have a material effect on the financial position, results of operations or cash flows of the Company.

Note 4 - Commitments and Cont40

Note 4 - Commitments and Contingencies: Contingencies (Policies)	12 Months Ended
	Dec. 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, 2016 and 2015 the Company has accrued a total of $125,575 contingent liabilities. On February 6, 2017, The Company received a Notification of Wage Claim from the State of Nevada Department of Business & Industry Office of the Labor Commissioner stating that Patrick Deparini had filed a claim for unpaid wages with the Office of the Labor Commissioner (the "Commissioner"). The notification states that Mr. Deparini maintains he was not paid for all hours worked between February 3, 3015 and December 28, 2015 for a total amount owed of $99,000. The Company disputed Mr. Deparini's claim with the Commissioner and responded by explaining to the Commissioner that Mr. Deparini improperly categorized his dispute with the Company as a wage claim, which it is not. 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, 2016 and 2015 the Company accrued a total of $88,968 contingent liabilities. 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, 2016 and 2015 the Company accrued a total of $98,150. 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 agreed to issue 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. The Company cancelled the agreement and is of the opinion that the shares are not owed to the consultant. As of December 31, 2016 there was no payable recorded.

Note 4 - Commitments and Cont41

Note 4 - Commitments and Contingencies: Leases (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Leases	Leases On February 15, 2014 the Company entered into a sublease agreement for approximately 2,000 square feet of office space on a month to month basis contingent on the lessor's master lease for the premises. The lease amount adjusts yearly and the current lease is $1,614 per month. On October 27, 2016 the Company sold its building located at 5765 Logan Street, Denver, Colorado to an unrelated third party for $1,400,000. The Company repaid the mortgage on the building in the amount of $677,681. After the sale, the Company leased the building from the purchaser of the property. The lease is for an initial term of ten years, with the Company having the option to extend the term of the lease for two additional five year periods. The lease requires rental payments of $10,000 per month and will increase 2% annually. The Company paid a $30,000 deposit at the inception of the lease. Future minimum lease payments 2017 $ 120,200 2018 122,604 2019 125,056 2020 127,557 2021 130,108 2022 and thereafter 654,539 Total minimum lease payments $ 1,280,064

Note 2 - Accounting Policies 42

Note 2 - Accounting Policies and Procedures: Property and Equipment: Property, Plant and Equipment, Schedule of Significant Acquisitions and Disposals (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Property, Plant and Equipment, Schedule of Significant Acquisitions and Disposals	Automotive Vehicles 5 years Furniture and Equipment 7 years Buildings and Improvements 15 years

Note 4 - Commitments and Cont43

Note 4 - Commitments and Contingencies: Leases: Schedule of Future Minimum Rental Payments for Operating Leases (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Future Minimum Rental Payments for Operating Leases	Future minimum lease payments 2017 $ 120,200 2018 122,604 2019 125,056 2020 127,557 2021 130,108 2022 and thereafter 654,539 Total minimum lease payments $ 1,280,064

Note 5 - Fixed Assets and Con44

Note 5 - Fixed Assets and Construction in Progress: Property, Plant and Equipment (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Property, Plant and Equipment	December 31, December 31, 2016 2015 Automotive vehicles $ 194,882 $ 173,926 Furniture and equipment 53,314 46,068 Fixed assets, total 248,196 219,994 Total : accumulated depreciation (115,309 ) (69,084 ) Fixed assets, net $ 132,887 $ 150,910

Note 6 - Discontinued Operati45

Note 6 - Discontinued Operations: Disposal Groups, Including Discontinued Operations (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Disposal Groups, Including Discontinued Operations	December 31, 2015 Assets of discontinued operations: Fixed assets $ 2,782 Total assets held for disposal $ 2,782 Liabilities of discontinued operations: Accounts payable 1,335 Total liabilities held for disposal $ 1,335 Income and Expenses of Discontinued Operations For the Year Ended December 31, 2015 Revenue $ 67,920 Costs of revenue $ 52,222 General and administrative expenses $ 70,604 Loss from discontinued operations $ (54,906)

Note 10 - Stockholders' Equity_

Note 10 - Stockholders' Equity: Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	NumberOf SUs Weighted-Average Grant Date Fair Value Per Share Balance at December 31, 2014 0 $ 0.00 Granted 9,050,000 $ 0.16 Vested 3,266,667 $ 0.16 Cancelled (5,783,333 ) $ 0.16 Balance at December 31, 2015 -- $ 0.16

Note 11 - Options and Warrants_

Note 11 - Options and Warrants: Schedule of Share-based Compensation, Stock Options, Activity (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Share-based Compensation, Stock Options, Activity	NumberOf Shares Weighted-Average Exercise Price Outstanding at December 31, 2014 11,886,900 $ 0.29 Granted 7,738,764 $ 0.06 Granted as a result of modified awards 5,336,238 $ 0.06 Exercised - $ 0.00 Cancelled (7,705,164 ) $ 0.29 Outstanding at December 31, 2015 17,256,738 $ 0.14 Granted 7,950,000 $ 0.05 Exercised - $ 0.00 Cancelled (453,333 ) $ 0.18 Outstanding at December 31, 2016 24,753,405 $ 0.11 Options exercisable at December 31, 2015 8,150,896 $ 0.19 Options exercisable at December 31, 2016 20,000,484 $ 0.11

Note 11 - Options and Warrant48

Note 11 - Options and Warrants: Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	OPTIONS OUTSTANDING AND EXERCISABLE AT DECEMBER 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 24,753,405 3.313 $ 0.11 20,000,484 $ 0.11 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

Note 11 - Options and Warrant49

Note 11 - Options and Warrants: Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity	Number Of Shares Weighted-Average Exercise Price Outstanding at December 31, 2015 - $ - Granted 5,000,000 $ 0.10 Exercised - $ - Cancelled - $ - Outstanding at December 31, 2016 5,000,000 $ 0.10 Options exercisable at December 31, 2016 5,000,000 $ 0.10

Note 11 - Options and Warrant50

Note 11 - Options and Warrants: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Stockholders' Equity Note, Warrants or Rights	WARRANTS OUTSTANDING AND EXERCISABLE AT DECEMBER 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 $ 0.10 5,000,000 4.49 $ 0.10 5,000,000 $ 0.10

Note 12 - Income Taxes_ Schedul

Note 12 - Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Effective Income Tax Rate Reconciliation	2016 & 2015 Federal statutory tax rate (35.0 %) Permanent difference and other 35.0 %

Note 2 - Accounting Policies 52

Note 2 - Accounting Policies and Procedures: Property and Equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Depreciation	$ 67,094	$ 41,912

Note 2 - Accounting Policies 53

Note 2 - Accounting Policies and Procedures: Advertising Costs (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Advertising Expense	$ 12,480	$ 30,502

Note 3 - Going Concern (Details

Note 3 - Going Concern (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Net loss	$ 2,435,961	$ 1,315,407
Accumulated deficit	6,971,790	$ 4,535,829
Capital	$ 1,413,767

Note 10 - Stockholders' Equity

Note 10 - Stockholders' Equity (Details) - shares	Dec. 31, 2016	Dec. 31, 2015
Details
Common Stock, Shares Authorized	1,400,000,000	1,400,000,000