Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | CANNASYS INC | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Entity Central Index Key | 1,417,028 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 11,098,405 | |
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 | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Incorporation, Date of Incorporation | Aug. 25, 1999 | |
Trading Symbol | mjtk |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Cash | $ 111,310 | $ 525,720 |
Accounts receivable | 6,030 | 2,224 |
Prepaid expenses and other assets | 2,828 | |
Total Current Assets | 117,340 | 530,772 |
Property & equipment, net | 6,590 | 7,987 |
Software license | 150,000 | 25,000 |
Deposit | 12,502 | 12,502 |
Total Assets | 286,432 | 576,261 |
Current Liabilities: | ||
Accounts payable | 5,815 | 21,133 |
Accrued expenses | 36,302 | 54,070 |
Notes payable | 100,000 | |
Due to a related party | 1,320 | |
Total Current Liabilities | 142,117 | 76,523 |
Total Liabilities | $ 142,117 | $ 76,523 |
Commitments and Contingencies | ||
Stockholders' Equity: | ||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued | ||
Common stock, $0.001 par value, 75,000,000 shares authorized, 11,074,367 and 11,043,755 shares issued and outstanding, respectively | $ 11,075 | $ 11,044 |
Additional paid-in capital | 2,305,743 | 2,247,524 |
Accumulated deficit | (2,172,503) | (1,758,830) |
Total Stockholders' Equity | 144,315 | 499,738 |
Total Liabilities and Stockholders' Equity | $ 286,432 | $ 576,261 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position | ||
Common Stock, par or stated value | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 75,000,000 | 75,000,000 |
Common Stock, shares issued | 11,074,367 | 11,043,755 |
Common Stock, shares outstanding | 11,074,367 | 11,043,755 |
Preferred Stock, par or stated value | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement | ||||
Sales revenue | $ 18,491 | $ 28,248 | ||
Cost of goods sold | 2,854 | 3,218 | ||
Gross Margin | 15,637 | 25,030 | ||
Operating Expenses: | ||||
Professional fees | 18,839 | $ 4,100 | 96,980 | $ 4,889 |
Salary and wage expense | 110,770 | 31,274 | 236,854 | 50,349 |
General and administrative | 56,900 | 84,067 | 104,191 | 186,993 |
Total Operating Expenses | 186,509 | 119,441 | 438,025 | 242,231 |
Loss from Operations | (170,872) | (119,441) | (412,995) | (242,231) |
Other expense: | ||||
Interest expense | (451) | (678) | ||
Total other expense | (451) | (678) | ||
Net loss | $ (171,323) | $ (119,441) | $ (413,673) | $ (242,231) |
Basic and diluted loss per common share | $ (0.02) | $ (0.04) | ||
Weighted average number of common shares outstanding | 11,073,750 | 11,065,621 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flow from operating activities | ||
Net loss | $ (413,673) | $ (242,231) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 1,396 | 0 |
Change in operating assets and liabilities: | ||
Increase in accounts receivable | (3,806) | |
Decrease in prepaids | 2,828 | 1,685 |
Increase in other assets | (66,750) | |
Increase (decrease) in related-party payable | (1,320) | |
Increase (decrease) in accounts payable | (15,318) | 11,128 |
Increase (decrease)in accrued expenses | (17,767) | 4,267 |
Net cash used in operating activities | $ (514,410) | $ (225,151) |
Cash flows provided by investing activities: | ||
Cash flows from financing activities: | ||
Contributed capital | $ 200,000 | |
Increase in notes payable | $ 100,000 | |
Net cash provided by financing activities | 100,000 | 200,000 |
Net decrease in cash | (414,410) | (25,151) |
Cash at beginning of the period | 525,720 | 88,389 |
Cash at end of the period | $ 111,310 | $ 63,238 |
Supplemental Disclosures: | ||
Interest paid | ||
Income taxes paid | ||
Supplemental disclosure of non-cash activities | ||
Common stock issued for software license | $ 58,250 |
Note 1 - Organization and Descr
Note 1 - Organization and Description of Business | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 1 - Organization and Description of Business | NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Organization We were organized as a Nevada corporation on August 25, 1999. On August 15, 2014, we entered into an Agreement and Plan of Merger to combine our business and activities with CannaSys, Inc., a privately held Colorado corporation focused on providing services to the cannabis industry (CannaSys-Colorado), into a single entity (the Merger). CannaSys-Colorado was originally formed on October 4, 2013, as a limited liability company, and converted to a corporation on June 26, 2014. Under the terms of the merger agreement, our wholly owned subsidiary formed to effectuate the Merger was merged with and into CannaSys-Colorado, the surviving entity, which then became our wholly owned subsidiary. By operation of the Merger, which was effective August 15, 2014, all of the CannaSys-Colorado outstanding common stock was converted into a total of 6,000,000 shares of our common stock, which then constituted 57.70% of our total issued and outstanding common stock. Our shareholders prior to the merger retained an aggregate of 4,398,088 shares of common stock; we had no outstanding options or warrants to purchase shares of common stock. Due to the CannaSys-Colorado shareholders controlling us after the Merger, CannaSys-Colorado was considered the accounting acquirer. The transaction was therefore recognized as a reverse acquisition of us by CannaSys-Colorado. The accompanying condensed consolidated financial statements are those of CannaSys-Colorado for all periods prior to the Merger. In connection with the closing of the Merger and after meeting the requirements of the Securities Exchange Act of 1934, as amended (Exchange Act), on November 12, 2014, we filed amended and restated articles of incorporation with the Nevada Secretary of State that: (i) changed our name to CannaSys, Inc.; (ii) increased our authorized capital stock to 80,000,000 shares, consisting of 75,000,000 shares of common stock and 5,000,000 shares of preferred stock; (iii) authorized 5,000,000 shares of preferred stock; and (iv) made other modernizing, nonmaterial changes to our articles of incorporation. Changing our corporate name to CannaSys, Inc. was a condition to the Merger transaction. The name change better reflects the nature of our principal business operations and it became effective in the OTC market on December 2, 2014, when FINRA announced the name change. We have also received a new CUSIP number and our trading symbol was changed to MJTK. Nature of Business We provide technology services in the ancillary space of the cannabis industry. We are a technology company and we do not produce, sell, or handle in any manner cannabis products. As the current cannabis industry grows and gains momentum around the country, technology needs for the industry have been largely underserved. Our focus on this niche element of the industry creates many efficient and profitable tools for both industry owners and consumers. Our business consists of four products currently in the marketplace BumpUp, CannaCash, CannaTrade, and CannaLIMSthat together serve the entire cannabis industry from grower-wholesaler to end-user. Our primary focus is on developing and marketing software products that significantly increase efficiency and analytical capability of our customers while improving end user experiences greatly. We plan to achieve this goal through enhanced focus on development and marketing of service oriented software products with multi-year client engagements. BumpUp is a content resource management platform or customer retention software designed to allow cannabis industry operators the ability to automatically market and target customers in the regulated cannabis markets. The BumpUp technology allows for strong social media ties and an electronic messaging system for cannabis industry operators to effectively and efficiently communicate with the customers with the goal of customer retention. The program is designed to comply with regulatory requirements. The program allows for a mobile application that is geographically restricted to only be available in states which allow safe-access laws to cannabis. CannaTrade is a market-style matching system designed to serve legal medical and recreational cannabis and hemp markets. CannaTrade and its sister product ExchangeHem bring the industry a secure, efficient, real-time wholesale product supply exchange and inventory management solution for connecting licensed wholesale buyers and sellers of all types of cannabis and non-cannabis products, while providing business logic to enhance governmental and regulatory compliance frameworks. CannaCash is an affiliate-based membership rewards loyalty program designed specifically for the cannabis industry. An early version of CannaCash was introduced to the market in July 2014. The CannaCash points program and future gift-card/prepaid-card programs will be free for all cannabis customers and affordable for dispensaries and providers. CannaCash gift cards will be available in multiple denominations and will be redeemable at participating CannaCash locations. The CannaCash gift mechanism will allow for strong social media ties and an electronic solution for providing gift cards and other products to friends and family. CannaCash includes an internal control mechanism designed to comply with the regulatory requirements applicable to individual retail outlets and customers based on applicable state licensing information and customers addresses. We plan to integrate our CannaCash solution with our BumpUp loyalty rewards solution for a complete end-to-end consumer experience. CannaLIMS provides a specific Laboratory Information Management System to regulated testing laboratories in regulated cannabis states. This software-based laboratory and information management system is designed specific to the cannabis industry and laboratory testing. The software features workflow and data tracking support, flexible architecture, and laboratory specified reporting output. We have currently released this product to the marketplace and are aggressively marketing to cannabis labs in regulated markets. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 2 - Summary of Significant Accounting Policies | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These financial statements should be read in conjunction with the audited financial statements and footnotes included in our Annual Report on Form 10-Kfor the year ended December 31, 2014. The results of the six months ended June 30, 2015, are not necessarily indicative of the results to be expected for the full year ending December 31, 2015. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control, and preventing and detecting fraud. Our system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements that present fairly our financial condition, results of operations, and cash flows for the respective periods being presented. Principles of Consolidation The accompanying consolidated financial statements include the accounts and transactions of CannaSys-Colorado, the accounting acquirer, from the date of its inception on October 4, 2013, and refer to the consolidated entity after taking the Merger transaction into effect. All intercompany transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in accordance with U.S. GAAP permits management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. All intercompany transactions have been eliminated in consolidation. Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. We believe we are not exposed to any significant credit risk on cash. Cash and Cash Equivalents We consider all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. There were no cash equivalents as of June 30, 2015, and December 31, 2014. Fair Value of Financial Instruments The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. We do not hold or issue financial instruments for trading purposes, and we do not use derivative instruments. The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows: · · · The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Fixed Assets Fixed assets are carried at the lower of cost or net realizable value. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in operations. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Depreciation is computed using the straight-line method over the following estimated useful lives: Equipment 3 years Furniture and fixtures 3 years Earnings (Loss) per Common Share Net income (loss) per common share is computed pursuant to ASC 260-10-45, Earnings per Share Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC 505-50, Equity-Based Payments to Non-Employees We account for employee stock-based compensation in accordance with the guidance of FASB ASC 718, CompensationStock Compensation, Revenue Recognition We follow paragraph ASC 605-10-S99-1, Revenue Recognition, Recently Issued Accounting Pronouncements In August 2014, the FASB issued Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern We have reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position, and cash flows. Based on that review, these pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and we do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations. Income Taxes We follow ASC 740-10-30, Income Taxes-Initial Measurement, We adopted ASC 740-10-25, Accounting for Uncertainty in Income Taxes |
Note 3 - Going Concern
Note 3 - Going Concern | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 3 - Going Concern | NOTE 3 GOING CONCERN As reflected in the accompanying financial statements, we have an accumulated deficit of $2,172,503 at June 30, 2015, had a net loss of $413,673, and used cash in operating activities of $514,410. This raises substantial doubt about our ability to continue as a going concern. While we are attempting to increase operations and revenues, our cash position may not be significant enough to support our daily operations. Management intends to raise additional funds by way of debt and equity financing. Management believes that the actions presently being taken to further implement our business plan and generate increased revenues provide the opportunity for us to continue as a going concern. While we believe in the viability of our strategy to generate increased revenues and in our ability to raise additional funds, there can be no assurances to that effect. Our ability to continue as a going concern is dependent upon our ability to further implement our business plan and generate increased revenues. The consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. |
Note 4 - Property and Equipment
Note 4 - Property and Equipment | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 4 - Property and Equipment | NOTE 4 PROPERTY AND EQUIPMENT Furniture, fixtures, and equipment, stated at cost, less accumulated depreciation consisted of the following: June 30, 2015 December 31, 2014 Furniture, fixtures, and equipment $8,403 $8,403 Less: accumulated depreciation (1,813) (416) Fixed assets, net $6,590 $7,987 Depreciation Expense Depreciation expense for the six months ended June 30, 2015 and 2014, was $1,396 and $0, respectively. |
Note 5 - Software License
Note 5 - Software License | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 5 - Software License | NOTE 5 SOFTWARE LICENSE Effective February 12, 2015, we entered into an exclusive licensing agreement with Loyl.Me, an established provider of automated marketing and customer relationship management software. The licensing agreement allows us the opportunity for perpetual and exclusive rights and ability to provide the cannabis community a convenient, cost-effective, and streamlined technology that is widely used in the non-cannabis industry. The technology is being branded as CannaCash BumpUp. The term of the agreement is perpetual; therefore, no amortization is being recognized. However, the value of the license will undergo an annual impairment test as required by ASC 350, IntangiblesGoodwill and Other The agreement requires nine installment payments of $25,000 each to be paid with a combination of cash and stock, and 8% of revenue from the use of the licensed technology . As of June 30, 2015, a previous payment of $25,000 from 2014, plus five of the installment payments have been made for a total of $150,000 . |
Note 6 - Commitments and Contin
Note 6 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 6 - Commitments and Contingencies | NOTE 6 COMMITMENTS AND CONTINGENCIES Operating Lease We currently occupy office space at 1720 S. Bellaire Street, Suite 325, Denver, CO. Our offices consist of approximately 1,786 rentable square feet. The lease term is 40 months and commenced on November 1, 2014. Future minimum lease payments for the next four years are as follows: Year Amount 2015 $28,278 2016 35,423 2017 37,208 2018 6,251 $107,160 |
Note 7 - Notes Payable
Note 7 - Notes Payable | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 7 - Notes Payable | NOTE 7 NOTES PAYABLE On June 26, 2015, we executed unsecured promissory notes to two accredited investors for a total of $100,000 in a private placement of our securities. The notes accrue interest at 1% per annum and are due and payable on March 1, 2016. The notes were issued in reliance on the exemption from registration provided in Section 4(a)(2) of the Securities Act of 1933, as amended, for transactions not involving any public offering. |
Note 8 - Related-party Transact
Note 8 - Related-party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 8 - Related-party Transactions | NOTE 8 RELATED-PARTY TRANSACTIONS As of December 31, 2014, we owed $1,320 for cash advances to the former president of Thermal Tennis. The advance was due on demand and non-interest-bearing. The advance was paid in the six months ended June 30, 2015. |
Note 9 - Stockholders' Equity (
Note 9 - Stockholders' Equity (Deficit) | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 9 - Stockholders' Equity (Deficit) | NOTE 9 STOCKHOLDERS EQUITY (DEFICIT) On February 9, 2015, we authorized the issuance of 25,000 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $2.00 , the closing stock price on the date of grant, for total non-cash stock compensation expense of $50,000 . On April 10, 2015, we authorized the issuance of 5,612 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $1.47 , the closing stock price on the date of grant, for total non-cash stock compensation expense of $8,250 . |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 10 - Subsequent Events | NOTE 10 SUBSEQUENT EVENTS In accordance with FASB ASC 855-10, Subsequent Events, On July 10, 2015, we authorized the issuance of 24,038 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $1.04 , the closing stock price on the date of grant, for total non-cash stock compensation expense of $25,000 . Effective July 1, 2015, we hired Michael A. Tew as our new CEO, secretary, and interim CFO. Mr. Tew was also appointed as a member of the Companys board of directors. Effective July 10, 2015, Chad Jennewine resigned as the Companys CEO and will now serve as our chief technology officer and will continue to be the Chairman of the board of directors. Dan Rogers resigned as the Companys CFO, secretary, and treasurer and will remain on the Companys board of directors. |
Note 2 - Summary of Significa16
Note 2 - Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Policies | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These financial statements should be read in conjunction with the audited financial statements and footnotes included in our Annual Report on Form 10-Kfor the year ended December 31, 2014. The results of the six months ended June 30, 2015, are not necessarily indicative of the results to be expected for the full year ending December 31, 2015. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control, and preventing and detecting fraud. Our system of internal accounting control is designed to assure, among other items, that: (1) recorded transactions are valid; (2) valid transactions are recorded; and (3) transactions are recorded in the proper period in a timely manner to produce financial statements that present fairly our financial condition, results of operations, and cash flows for the respective periods being presented. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts and transactions of CannaSys-Colorado, the accounting acquirer, from the date of its inception on October 4, 2013, and refer to the consolidated entity after taking the Merger transaction into effect. All intercompany transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with U.S. GAAP permits management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. All intercompany transactions have been eliminated in consolidation. |
Concentrations of Credit Risk | Concentrations of Credit Risk We maintain our cash in bank deposit accounts, the balances of which at times may exceed federally insured limits. We continually monitor our banking relationships and consequently have not experienced any losses in our accounts. We believe we are not exposed to any significant credit risk on cash. |
Cash and Cash Equivalents | Cash and Cash Equivalents We consider all highly liquid securities with original maturities of three months or less when acquired to be cash equivalents. There were no cash equivalents as of June 30, 2015, and December 31, 2014. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. We do not hold or issue financial instruments for trading purposes, and we do not use derivative instruments. The Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability, in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows: · · · The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement. |
Fixed Assets | Fixed Assets Fixed assets are carried at the lower of cost or net realizable value. Normal maintenance and repairs are charged to expense as incurred. When assets are sold or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is recognized in operations. Depreciation is computed using the straight-line method over the estimated useful life of the asset. Depreciation is computed using the straight-line method over the following estimated useful lives: Equipment 3 years Furniture and fixtures 3 years |
Earnings (loss) Per Common Share | Earnings (Loss) per Common Share Net income (loss) per common share is computed pursuant to ASC 260-10-45, Earnings per Share |
Stock-based Compensation | Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC 505-50, Equity-Based Payments to Non-Employees We account for employee stock-based compensation in accordance with the guidance of FASB ASC 718, CompensationStock Compensation, |
Revenue Recognition | Revenue Recognition We follow paragraph ASC 605-10-S99-1, Revenue Recognition, |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2014, the FASB issued Accounting Standards Update (ASU) 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40) Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern We have reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position, and cash flows. Based on that review, these pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and we do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations. |
Income Taxes | Income Taxes We follow ASC 740-10-30, Income Taxes-Initial Measurement, We adopted ASC 740-10-25, Accounting for Uncertainty in Income Taxes |
Note 4 - Property and Equipme17
Note 4 - Property and Equipment: Furniture, Fixtures, and Equipment at cost (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Furniture, Fixtures, and Equipment at cost | Furniture, fixtures, and equipment, stated at cost, less accumulated depreciation consisted of the following: June 30, 2015 December 31, 2014 Furniture, fixtures, and equipment $8,403 $8,403 Less: accumulated depreciation (1,813) (416) Fixed assets, net $6,590 $7,987 |
Note 6 - Commitments and Cont18
Note 6 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments for the next four years are as follows: Year Amount 2015 $28,278 2016 35,423 2017 37,208 2018 6,251 $107,160 |
Note 1 - Organization and Des19
Note 1 - Organization and Description of Business (Details) - shares | 1 Months Ended | 6 Months Ended | |||
Aug. 31, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Nov. 12, 2014 | Aug. 14, 2014 | |
Entity Incorporation, Date of Incorporation | Aug. 25, 1999 | ||||
Common Stock, shares outstanding | 11,074,367 | 11,043,755 | 4,398,088 | ||
Options, Outstanding | 0 | ||||
Warrants, Outstanding | 0 | ||||
Authorized Capital Stock | 80,000,000 | ||||
Common Stock, shares authorized | 75,000,000 | 75,000,000 | 75,000,000 | ||
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | ||
Common Stock | |||||
CannaSys outstanding common stock converted upon merger | 6,000,000 | ||||
CannaSys outstanding common stock, percent of shares acquired upon merger | 57.70% |
Note 2 - Summary of Significa20
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Cash Equivalents, at Carrying Value | $ 0 | $ 0 |
Note 2 - Summary of Significa21
Note 2 - Summary of Significant Accounting Policies: Fixed Assets (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Machinery and Equipment | |
Estimated Useful Life | 3 years |
Furniture and Fixtures | |
Estimated Useful Life | 3 years |
Note 3 - Going Concern (Details
Note 3 - Going Concern (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Details | |||||
Accumulated deficit | $ (2,172,503) | $ (2,172,503) | $ (1,758,830) | ||
Net loss | $ (171,323) | $ (119,441) | (413,673) | $ (242,231) | |
Net cash used in operating activities | $ (514,410) | $ (225,151) |
Note 4 - Property and Equipme23
Note 4 - Property and Equipment: Furniture, Fixtures, and Equipment at cost (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Details | ||
Furniture, fixtures, and equipment | $ 8,403 | $ 8,403 |
Less: accumulated depreciation | (1,813) | (416) |
Fixed assets, net | $ 6,590 | $ 7,987 |
Note 4 - Property and Equipme24
Note 4 - Property and Equipment (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||
Depreciation Expense | $ 1,396 | $ 0 |
Note 5 - Software License (Deta
Note 5 - Software License (Details) - Loyl.Me - USD ($) | 6 Months Ended | 12 Months Ended | 18 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
License agreement payment terms | The agreement requires nine installment payments of $25,000 each to be paid with a combination of cash and stock, and 8% of revenue from the use of the licensed technology | ||
Payments to Acquire Technology | $ 25,000 | $ 150,000 |
Note 6 - Commitments and Cont26
Note 6 - Commitments and Contingencies (Details) - Jun. 30, 2015 - ft² | Total |
Details | |
Square Footage of Office Space | 1,786 |
Lease Term | 40 years |
Note 6 - Commitments and Cont27
Note 6 - Commitments and Contingencies: Schedule of Future Minimum Rental Payments for Operating Leases (Details) | Jun. 30, 2015USD ($) |
Details | |
2,015 | $ 28,278 |
2,016 | 35,423 |
2,017 | 37,208 |
2,018 | 6,251 |
Total | $ 107,160 |
Note 7 - Notes Payable (Details
Note 7 - Notes Payable (Details) - Investor - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 26, 2015 | |
Debt Instrument, Face Amount | $ 100,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | |
Debt Instrument, Maturity Date | Mar. 1, 2016 |
Note 8 - Related-party Transa29
Note 8 - Related-party Transactions (Details) | Dec. 31, 2014USD ($) |
Details | |
Due to a related party | $ 1,320 |
Note 9 - Stockholders' Equity30
Note 9 - Stockholders' Equity (Deficit) (Details) - Loyl.Me - USD ($) | 3 Months Ended | |||
Jun. 30, 2015 | Mar. 31, 2015 | Apr. 10, 2015 | Feb. 09, 2015 | |
Stock Issued During Period, Shares, License Agreement | 5,612 | 25,000 | ||
Share Price | $ 1.47 | $ 2 | ||
Stock compensation expense | $ 8,250 | $ 50,000 |
Note 10 - Subsequent Events (De
Note 10 - Subsequent Events (Details) - Loyl.Me - USD ($) | Jul. 10, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Apr. 10, 2015 | Feb. 09, 2015 |
Stock Issued During Period, Shares, License Agreement | 5,612 | 25,000 | |||
Share Price | $ 1.47 | $ 2 | |||
Stock compensation expense | $ 8,250 | $ 50,000 | |||
Subsequent Event | |||||
Stock Issued During Period, Shares, License Agreement | 24,038 | ||||
Share Price | $ 1.04 | ||||
Stock compensation expense | $ 25,000 |