Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | Nov. 11, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | CANNASYS INC | ||
Document Type | S1 | ||
Document Period End Date | Sep. 30, 2016 | ||
Amendment Flag | false | ||
Entity Central Index Key | 1,417,028 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 25,050,522 | ||
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 | ||
Entity Incorporation, Date of Incorporation | Aug. 25, 1999 | Aug. 25, 1999 | |
Trading Symbol | mjtk |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets: | |||
Cash | $ 1,860 | $ 7,720 | $ 525,720 |
Accounts receivable | 4,550 | 2,224 | |
Prepaid expenses and other assets | 2,828 | ||
Total Current Assets | 1,860 | 12,270 | 530,772 |
Property & equipment, net | 208,588 | 5,178 | 7,987 |
Software license | 255,000 | 25,000 | |
Available for sale securities | 32,500 | 32,500 | |
Equity investment in MHB, Inc., net of impairment of $2,445,990 | 450,000 | 1,049,475 | |
Deposit | 1,500 | 12,502 | |
Total Assets | 694,448 | 1,354,423 | 576,261 |
Current Liabilities: | |||
Accounts payable | 339,870 | 123,676 | 21,133 |
Accrued expenses | 136,565 | 51,274 | 54,070 |
Due to a related party | 1,320 | ||
Notes payable | 179,717 | 200,000 | |
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 456,094 | 152,966 | |
Total Current Liabilities | 1,112,246 | 527,916 | 76,523 |
Total Liabilities | 1,112,246 | 527,916 | 76,523 |
Stockholders' Equity: | |||
Preferred stock, $0.001 par value, 5,000,000 shares authorized, 1,515,000 and no shares issued and outstanding, respectively | 1,515 | ||
Common stock, $0.001 par value, 2,000,000,000 shares authorized, 3,420,551 and 1,058,802 shares issued and outstanding, respectively | 3,421 | 1,059 | 552 |
Additional paid-in capital | 8,710,096 | 6,442,134 | 2,258,016 |
Accumulated deficit | (9,132,830) | (5,616,686) | (1,758,830) |
Total Stockholders' Equity (Deficit) | (417,798) | 826,507 | 499,738 |
Total Liabilities and Stockholders' Equity | $ 694,448 | $ 1,354,423 | $ 576,261 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position | |||
Common Stock, par or stated value | $ 0.001 | $ 0.001 | $ 0.001 |
Common Stock, shares authorized | 75,000,000 | 2,000,000,000 | 2,000,000,000 |
Common Stock, shares issued | 3,420,551 | 1,058,802 | 552,188 |
Common Stock, shares outstanding | 3,420,551 | 1,058,802 | 552,188 |
Preferred Stock, par or stated value | $ 0.001 | $ 0.001 | $ 0.001 |
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 |
Preferred Stock, shares issued | 1,515,000 | 0 | 0 |
Preferred Stock, shares outstanding | 1,515,000 | 0 | 0 |
Impairment of equity investment in MHB, Inc. | $ 2,445,990 | $ 1,846,515 | $ 0 |
Convertible notes payable, discount | $ 42,797 | $ 122,084 | $ 0 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement | ||||||
Sales revenue | $ 499 | $ 48,156 | $ 59,150 | $ 76,404 | $ 119,325 | $ 6,538 |
Cost of goods sold | 6,800 | 24,260 | 10,018 | 47,823 | 12,006 | |
Gross Margin | 499 | 41,356 | 34,890 | 66,386 | 71,502 | (5,468) |
Operating Expenses: | ||||||
Stock-based compensation expense | 119,125 | 604,592 | 904,125 | 1,012,500 | ||
Professional fees | 95,286 | 58,847 | 307,713 | 155,827 | 207,892 | 130,642 |
Salary and wage expense | 49,092 | 335,297 | 183,793 | 572,151 | 491,223 | 274,057 |
General and administrative | 68,240 | 96,394 | 198,261 | 200,585 | 231,033 | 303,670 |
Total Operating Expenses | 331,743 | 490,538 | 1,294,359 | 928,563 | 1,834,273 | 1,720,869 |
Loss from Operations | (331,244) | (449,182) | (1,259,469) | (862,177) | (1,762,771) | (1,726,337) |
Other Expense: | ||||||
Loss on fixed and intangible assets | (258,766) | (258,766) | ||||
Gain on forgiveness of debt | 40,000 | 40,000 | ||||
Interest expense | (12,749) | (1,410) | (29,204) | (2,088) | (6,344) | |
Interest expense-debt discount and loan financing fees | (86,291) | (502,140) | (85,250) | |||
Impairment loss on investment | (599,475) | (599,475) | (4,010) | |||
Loss on issuance of convertible debt | (418,079) | (907,090) | (152,966) | |||
Loss on investment | (599,475) | (1,846,515) | ||||
Total other expense | (1,335,360) | (1,410) | (2,256,675) | (2,088) | (2,095,085) | |
Loss before provision for income taxes | (1,666,604) | (450,592) | (3,516,144) | (864,265) | (3,857,856) | (1,726,337) |
Provision for income taxes | ||||||
Net loss | $ (1,666,604) | $ (450,592) | $ (3,516,144) | $ (864,265) | $ (3,857,856) | $ (1,726,337) |
Basic and diluted loss per common share | $ (0.50) | $ (0.80) | $ (1.77) | $ 0 | $ (6.14) | $ (5.17) |
Weighted average number of common shares outstanding | 3,365,342 | 563,703 | 1,990,980 | 556,780 | 628,186 | 364,119 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity - USD ($) | Common Stock | Additional Paid In Capital | Accumulated Deficit | Total | |
Stockholders' Equity, beginning of period, Value at Dec. 31, 2013 | $ 198 | $ 109,790 | $ (32,493) | $ 77,495 | |
Stockholders' Equity, beginning of period, Shares at Dec. 31, 2013 | 198,000 | ||||
Issuance of common stock, Value | [1] | $ 184 | 1,087,216 | 1,087,400 | |
Issuance of common stock, Shares | [1] | 184,284 | |||
Issuance of common stock for compensation, Value | $ 34 | 1,012,466 | 1,012,500 | ||
Issuance of common stock for compensation, Shares | 33,750 | ||||
Merger acquisition, Value | $ 136 | 48,544 | 48,680 | ||
Merger acquisition, Shares | 136,154 | ||||
Net loss | (1,726,337) | (1,726,337) | |||
Stockholders' Equity, end of period, Value at Dec. 31, 2014 | $ 552 | 2,258,016 | (1,758,830) | 499,738 | |
Stockholders' Equity, end of period, Shares at Dec. 31, 2014 | 552,188 | ||||
Issuance of common stock for licensing, Value | $ 7 | 108,243 | 108,250 | ||
Issuance of common stock for licensing, Shares | 6,614 | ||||
Issuance of common stock, Value | [2] | $ 500 | 2,899,500 | 2,900,000 | |
Issuance of common stock, Shares | [2] | 500,000 | |||
Issuance of warrants | 904,125 | 904,125 | |||
Beneficial conversion feature on convertible debt | 272,250 | 272,250 | |||
Net loss | (3,857,856) | (3,857,856) | |||
Stockholders' Equity, end of period, Value at Dec. 31, 2015 | $ 1,059 | $ 6,442,134 | $ (5,616,686) | 826,507 | |
Stockholders' Equity, end of period, Shares at Dec. 31, 2015 | 1,058,802 | ||||
Net loss | (3,516,144) | ||||
Stockholders' Equity, end of period, Value at Sep. 30, 2016 | $ (417,798) | ||||
[1] | for cash | ||||
[2] | for investment |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flow from operating activities | ||||
Net loss | $ (3,516,144) | $ (864,265) | $ (3,857,856) | $ (1,726,337) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||||
Severance expense | 33,717 | |||
Gain on forgiveness of debt | (40,000) | |||
Depreciation | 13,824 | 2,103 | 2,810 | 416 |
Stock-based compensation | 604,592 | 208,000 | 904,125 | 1,012,500 |
Amortization of debt discount | 502,140 | 85,250 | ||
Impairment loss on investment | 599,475 | 1,846,515 | ||
Loss on issuance of convertible debt | 907,090 | 152,966 | ||
Loss on investment | 599,475 | 4,010 | ||
Change in operating assets and liabilities: | ||||
Accounts receivable | 4,550 | 1,424 | (2,326) | (2,224) |
Prepaids | 2,828 | 2,828 | (1,143) | |
Other assets | (1,500) | (96,750) | 12,502 | (37,502) |
Related-party payable | (1,320) | (1,320) | 1,320 | |
Accounts payable | 237,799 | 33,590 | 102,542 | 25,414 |
Accrued expenses | 87,831 | 8,051 | (2,796) | 50,171 |
Net cash used in operating activities | (307,860) | (706,339) | (750,750) | (677,385) |
Cash flows (used in) provided by investing activities: | ||||
Purchase of property and equipment | (8,403) | |||
Purchase of software license | (121,750) | |||
Purchase of available for sale securities | (32,500) | |||
Cash acquired in merger with Thermal Tennis | 35,719 | |||
Cash flows provided by investing activities | (154,250) | 27,316 | ||
Cash flows from financing activities: | ||||
Proceeds from the sales of common stock | 1,087,400 | |||
Proceeds from notes payable | 387,000 | |||
Net cash provided by financing activities | 302,000 | 200,000 | 387,000 | 1,087,400 |
Net increase (decrease) in cash | (5,860) | (506,339) | (518,000) | 437,331 |
Cash at beginning of the period | 7,720 | 525,720 | 525,720 | 88,389 |
Cash at end of the period | 1,860 | 19,381 | 7,720 | 525,720 |
Supplemental Disclosures: | ||||
Interest paid | ||||
Income taxes paid | ||||
Supplemental disclosure of noncash activities | ||||
Common stock issued for services | 117,500 | |||
Common stock issued for software | 221,000 | |||
Common stock issued for software license | $ 83,249 | 108,250 | ||
Common stock issued for investment | 2,900,000 | |||
Issuance of convertible notes payable | $ 1,269,193 | $ 272,250 |
Note 1 - Organization and Descr
Note 1 - Organization and Description of Business | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 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 (the "Merger") with CannaSys, Inc., a privately held Colorado corporation focused on providing services to the cannabis industry ("CannaSys-Colorado"). 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. 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 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 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. Since inception, we have developed, refined, and introduced branded products, membership loyalty programs, text-message-based platforms for customer engagement, and laboratory management systems into the cannabis industry. To support marketing and delivery of our principal products and to access other products and services, we are expanding a network of strategic alliances within the industry to build an array of product and service offerings and to increase use of our distribution channels. Most of our active strategic relationships were only recently initiated and are yet to generate revenue. We seek funding to launch our integrated cannabis-industry product and service suite. Our primary business objectives are to generate stable revenues and cash flows through the development of vertically integrated distribution centers and to collect and monetize cannabis consumer data. | 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. 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." On October 17, 2016, we completed: (i) a reverse-split of our outstanding common stock 20-to-one; and (ii) an increase to our authorized capital to 2,005,000,000 shares, consisting of 2,000,000,000 shares of common stock and 5,000,000 shares of preferred stock (the "Recapitalization"). All share and per-share amounts in the accompanying consolidated financial statements have been adjusted to give retroactive effect to the Recapitalization. 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 Rewards, BumpUp Rewards White Label, CannaLIMS, and MHB, Inc. Branded Products—that together serve the entire cannabis industry from grower-wholesaler to end-user. We developed BumpUp Rewards as an affiliate-based membership rewards loyalty program designed specifically for the cannabis industry. An early version of BumpUp Rewards was introduced into the market as CannaCash in July 2014. The BumpUp Rewards application is free for customers and an efficient use of marketing dollars for dispensaries and providers. The BumpUp Rewards application allows for strong social media ties and an electronic solution for providing gifts, points, and discounts to friends and family. BumpUp Rewards 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' locations. For retail establishments, BumpUp Rewards offers the ability to gain new customers through gifts, retain customers through the affiliate and store-specific points program, and tailor specials and free advertising via the BumpUp Rewards program to an increasingly significant customer marketplace. On December 22, 2015, we entered into a joint software development and marketing agreement with National Concessions Group, Inc., the organization responsible for marketing and branding a cannabis product brand called O.penVAPE. We are jointly developing and marketing an advanced, white-label version of our BumpUp Rewards application with functionality intended to incentivize product and corporate sales organizations through a proprietary points system. We are exploring the patentability of this product in collaboration with National Concessions Group. CannaLIMS is a laboratory management information system product focused solely on the cannabis marketplace. Cannabis laboratories have multiple state and local level regulatory reporting requirements. We license our CannaLIMS system to customers, who access the software through web browsers and mobile applications, for recurring license fees. We have currently launched this product into the market and have secured new recurring revenue clientele. As with other software products we license, we are continuously making product improvements that we provide to existing users and new customers and are actively marketing in the laboratory sector of the industry. On November 10, 2015, we acquired a 49% interest and a 10% gross revenue share in MHB, Inc., a Colorado corporation doing business as Mile High Brands. Mile High Brands is a licensing and distribution company doing business in the regulated cannabis industry. Under the share exchange agreement, we acquired 10,000,000 shares of Mile High Brands in exchange for 500,000 shares of our common stock. Mile High Brands contracts with celebrity brands and organizations and creates licensing opportunities for us through this relationship. We currently have a number of product licensing and distribution opportunities in partnership with Mile High Brands and expect to expand that portfolio in the future. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Notes | ||
Note 2 - Summary of Significant Accounting Policies | NOTE 2–SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Unaudited Interim Financial Information 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-K for the year ended December 31, 2015. The results of the nine months ended September 30, 2016, are not necessarily indicative of the results to be expected for the full year ending December 31, 2016. 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: (i) recorded transactions are valid; (ii) valid transactions are recorded; and (iii) 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. Revenue Recognition We follow Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605-10-S99-1, Revenue Recognition, Recently Issued Accounting Pronouncements In September 2015, the FASB issued Accounting Standards Update ("ASU") No. 2015-16, Business Combinations (Topic 805). In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases (FAS 13) We have reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our 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. | NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Our 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 do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. 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. All share and per-share amounts in the accompanying consolidated financial statements have been adjusted to give retroactive effect to the Recapitalization. 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 maintain our cash balance at a financial institution located in Colorado. Accounts at this institution are insured by the Federal Deposit Insurance Corporation up to $250,000. As of December 31, 2015 and 2014, we had a cash balance of $7,720 and $525,720, respectively. We had an uninsured balance of $275,750 at December 31, 2014. We have not experienced any losses in such accounts, and management believes it is not exposed to any significant credit risk on cash. Accounts Receivable Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount of receivables to its net realizable value. The need for an allowance for uncollectible amounts is evaluated quarterly. We have not deemed it necessary to establish an allowance for doubtful accounts as of December 31, 2015 and 2014. Reclassifications Certain reclassifications have been made to the prior year financial information to conform to the presentation used in the financial statements for the year ended December 31, 2015. Fair Value of Financial Instruments We follow paragraph 825-10-50-10 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB ASC to measure the fair value of our financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value U.S. GAAP and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by paragraph 820-10-35-37 are described below: Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2: Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3: Pricing inputs that are generally observable inputs and not corroborated by market data. The carrying amount of our financial assets and liabilities, such as cash, prepaid expenses, and accrued expenses, approximate their fair value because of the short maturity of those instruments. Our notes payable approximate the fair value of such instruments based upon management's best estimate of interest rates that would be available to us for similar financial arrangements at December 31, 2015. 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 lives of the assets of three years. Revenue Recognition We follow paragraph ASC 605-10-S99-1 for revenue recognition. We will recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) the product has been shipped or the services have been rendered to the customer; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. Earnings (Loss) per Common Share Net income (loss) per common share is computed pursuant to paragraph ASC 260-10-45. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that we incorporated as of the beginning of the first period presented. Our diluted loss per share is the same as the basic loss per share for the years ended December 31, 2015 and 2014, as the inclusion of any potential shares would have had an anti-dilutive effect due to our generating a loss. Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC Topic No. 505-50, Equity-Based Payments to Non-Employees We account for employee stock-based compensation in accordance with the guidance of FASB ASC Topic No. 718, Compensation—Stock Compensation, Valuation of Intangibles and Long-Lived Assets We test intangibles and long-lived assets for recoverability when changes in circumstances indicate the carrying value may not be recoverable, for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, and significant negative industry or economic trends. We evaluate recoverability of an asset by comparing its carrying value to the future net undiscounted cash flows that we expect will be generated by the asset. If the comparison indicates that the carrying value of an asset is not recoverable, we recognize an impairment loss for the excess of carrying value over the estimated fair value. Income Taxes We follow paragraph 740-10-30 of the FASB ASC, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Income in the period that includes the enactment date. We adopted paragraph 740-10-25 of the FASB ASC with regards to uncertainty income taxes. Paragraph 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under paragraph 740-10-25, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Paragraph 740-10-25 also provides guidance on derecognition, classification, interest, penalties on income taxes, and accounting in interim periods and requires increased disclosures. We had no material adjustments to our liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25. 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 Entity's Ability to Continue as a Going Concern substantial doubt We have implemented all new accounting pronouncements that are in effect. 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. |
Note 3 - Going Concern
Note 3 - Going Concern | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Notes | ||
Note 3 - Going Concern | NOTE 3–GOING CONCERN As reflected in the accompanying financial statements, we had a net loss of $3,516,144 and used cash in operating activities of $307,860 for the nine months ended September 30, 2016. We had an accumulated deficit of $9,132,830 as of September 30, 2016. These factors raise substantial doubt about our ability to continue as a going concern. The financial statements have been prepared assuming that we will continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should we be unable 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 financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern. | NOTE 3 – GOING CONCERN As reflected in the accompanying financial statements, we have an accumulated deficit of $5,616,686 at December 31, 2015, had a net loss of $3,857,856, and used net cash of $750,750 in operating activities for year ended December 31, 2015. This raises substantial doubt about our ability to continue as a going concern. The financial statements have been prepared assuming that we will continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should we be unable 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 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 | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 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: September 30, 2016 December 31, 2015 Furniture, fixtures, and equipment $- $8,403 Software 221,000 - Less: accumulated depreciation (12,412) (3,225) Fixed assets, net $208,588 $5,178 During the nine months ended September 30, 2016, we disposed of $8,403 of office furniture we were no longer using, resulting in a loss on disposal of $3,766. Depreciation Expense Depreciation expense for the nine months ended September 30, 2016 and 2015, was $13,824 and $2,103, respectively. | NOTE 4 – PROPERTY AND EQUIPMENT Furniture, fixtures, and equipment, stated at cost, less accumulated depreciation consisted of the following at December 31: 2015 2014 Furniture, fixtures, and equipment $8,403 $8,403 Less: accumulated depreciation (3,225) (416) Fixed assets, net $5,178 $7,987 Depreciation Expense Depreciation expense for the years ended December 31, 2015 and 2014, was $2,810 and $416, respectively. |
Note 5 - Software License
Note 5 - Software License | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Notes | ||
Note 5 - Software License | NOTE 5–SOFTWARE LICENSE Effective February 12, 2015, we entered into an exclusive licensing agreement with Loyl.Me LLC, 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 "BumpUp Rewards." 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, Intangibles—Goodwill 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 . A On October 3, 2016, we entered into an agreement to terminate the license agreement as it was no longer a core part of our daily business operations. Because of the termination, the software license is fully impaired resulting in a loss of $255,000. | NOTE 5 – SOFTWARE LICENSE Effective February 12, 2015, we entered into an exclusive licensing agreement with Loyl.Me LLC, 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 "BumpUp Rewards." 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, Intangibles—Goodwill 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 December 31, 2015, we have paid $255,000 in cash and stock towards the total cost of the license. A |
Note 6 - Available For Sale Sec
Note 6 - Available For Sale Securities | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Notes | ||
Note 6 - Available For Sale Securities | NOTE 6–AVAILABLE-FOR-SALE SECURITIES On December 10, 2015, we acquired a 1.083% interest in Duby, LLC for $32,500. Duby is a social media application focused on cannabis consumers. As part of the acquisition, Duby plans to assist in the promotion of our products and services on its platform. We purchased the interest in Duby as part of ongoing negotiations for the joint marketing and promotion of our respective products. The purchase is being accounted for according to ASC 320, Debt and Equity Securities | NOTE 6 – AVAILABLE FOR SALE SECURITIES On December 10, 2015, we acquired a 1.083% interest in Duby, LLC for $32,500. Duby is a social media application focused on cannabis consumers. As part of the acquisition, Duby plans to assist in the promotion of our products and services on its platform. We purchased the interest in Duby as part of ongoing negotiations for the joint marketing and promotion of our respective products. The purchase is being accounted for according to ASC 320, Debt and Equity Securities |
Note 7 - Investment in Mile Hig
Note 7 - Investment in Mile High Brands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Notes | ||
Note 7 - Investment in Mile High Brands | NOTE 7–INVESTMENT IN MHB On November 10, 2015, we entered into an agreement to exchange 500,000 shares of our common stock for 10 million shares of MHB, Inc., doing business as Mile High Brands ("MHB"). The shares were valued at $5.80 per share, the closing stock price on the date of grant, for a total of $2,900,000 . Debt and Equity Securities A The impact to our financial statements for the nine months ended September 30, 2016, is immaterial as evidenced by the following financial information provided by MHB for the nine months ended September 30, 2016: Nine Months Ended September 30, 2016 Sales revenue $41,629 Cost of sales 15,897 Gross margin 25,372 Operating Expenses: General and administrative 9,466 Total operating expenses 9,466 Income from operations 15,906 Other expense: Interest expense - Total other expense - Net income $15,906 Net income attributed to Cannasys, Inc. $7,794 | NOTE 7 – INVESTMENT IN MHB On November 10, 2015, we entered into an agreement to exchange 500,000 shares of our common stock for 10 million shares of MHB, Inc., doing business as Mile High Brands ("Mile High Brands"). Our shares were valued at $5.80 per share, the closing stock price on the date of grant, for a total of $2,900,000 . Debt and Equity Securities A MHB was unable to provide us with its financial statements for the year ended December 31, 2015, before we completed the preparation and filing of our financial statements. At the time, we determined that the impact to the financial statements would have been immaterial. Since then we have been provided with the following financial information confirming the original assessment that our portion of MHB's net loss was immaterial to our financial statements. November 11, 2015 through December 31, 2015 Sales revenue $7,713 Cost of sales 60 Gross margin 7,653 Operating Expenses: General and administrative 14,985 Total operating expenses 14,985 Loss from operations (7,332) Other expense: Interest expense (851) Total other expense (851) Net loss $(8,183) Net loss attributed to CannaSys, Inc. $(4,010) |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Notes | ||
Note 8 - Commitments and Contingencies | NOTE 8–COMMITMENTS AND CONTINGENCIES We currently sublease office space in Denver, Colorado. We signed a month-to-month lease starting January 1, 2016. Current lease payments are based on the number of desks occupied not to exceed $1,500 per month. The sublease required a deposit of $1,500, which was paid on January 25, 2016. | NOTE 8 – COMMITMENTS AND CONTINGENCIES Operating Lease We currently sublease office space in Denver, Colorado. We signed a month-to-month lease starting January 1, 2016. Current lease payments are based on number of desks being occupied not to exceed $1,500 per month. The sublease required a deposit of $1,500, which was paid on January 25, 2016. |
Note 9 - Notes Payable
Note 9 - Notes Payable | 9 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 9 - Notes Payable | NOTE 9–NOTE PAYABLE On February 16, 2016, MHB, Inc. advanced to us $7,500 to pay for certain operating expenses. The loan is unsecured, due on demand, and accrues interest at 10%. As of September 30, 2016, this loan remains outstanding and has accrued interest of $464. Effective March 24, 2016, we issued a promissory note for $33,717 with a former employee pursuant to the terms of the employment separation agreement. The note is unsecured, non-interest-bearing, and repayable according to a specific schedule by September 19, 2016. As of September 30, 2016, the note is past due with a balance of $20,217. On April 27, 2016, we issued a promissory note for $27,000 with Jeff Holmes in conjunction with Mr. Holmes assignment of his note dated June 26, 2015, to Blackbridge Capital, LLC (Note 10). The note included a $25,000 cash payment and a $2,000 original issue discount. The note is unsecured, accrues interest at 1% per annum, and is due and payable on October 26, 2016. In connection with the execution of the promissory note, we also issued a warrant to purchase 5,000 shares of common stock (Note 12). As of September 30, 2016, this note remains outstanding and has accrued interest of $115. |
Note 10 - Notes Payable in Defa
Note 10 - Notes Payable in Default | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Notes | ||
Note 10 - Notes Payable in Default | NOTE 10–NOTES PAYABLE IN DEFAULT During the year ended December 31, 2015, we issued four unsecured promissory notes to two accredited investors, B44, LLC and Jeff Holmes, for a total of $200,000 in a private placement of our securities. The notes accrue interest at 1% per annum and were due and payable on March 1, 2016. On April 27, 2016, Jeff Holmes entered into a Note Purchase and Assignment Agreement whereby he assigned his full interest in one of the notes for $50,000 to Blackbridge Capital, LLC. On May 23, 2016, B44, LLC, entered into a Note Purchase and Assignment Agreement whereby it assigned its full interest in one of the notes for $50,000 to Kodiak Capital Group, LLC. On May 31, 2016 B44, LLC, entered into a Note Purchase and Assignment Agreement whereby it assigned its full interest in one of the notes for $50,000 to Black Forest Capital, LLC. As of September 30, 2016, one note for $50,000 remains in default. On January 13, 2016, we issued a promissory note for $75,000 with B44, LLC. The note is unsecured, accrues interest at 1% per annum, and is due and payable on June 30, 2016. In connection with the execution of the promissory note, we also issued a warrant to purchase 11,250 shares of common stock. This note is currently in default. | NOTE 10 – NOTES PAYABLE IN DEFAULT During the year ended December 31, 2015, we executed unsecured promissory notes to two accredited investors for a total of $200,000 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 11 - Convertible Notes Pay
Note 11 - Convertible Notes Payable | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Notes | ||
Note 11 - Convertible Notes Payable | NOTE 11–CONVERTIBLE NOTES PAYABLE The following is a summary of outstanding convertible promissory notes as of December 31, 2015: Note Holder Issue Date Maturity Date Stated Interest Rate Principal Balance Outstanding 12/31/2015 EMA Financial, LLC 10/14/2015 10/14/2016 10% $ 30,800 Tangiers Investment Group, LLC 11/18/2015 11/19/2016 10% 60,000 Kodiak Capital Group, LLC 11/30/2015 12/01/2016 12% 50,000 Auctus Fund, LLC 12/03/2015 09/03/2016 10% 49,250 Adar Bays, LLC 12/10/2015 12/10/2016 8% 35,000 Kodiak Capital Group, LLC 12/15/2015 07/15/2016 0% 50,000 275,050 Less debt discount (122,084) $ 152,966 The following is a summary of outstanding convertible promissory notes as of September 30, 2016: Note Holder Issue Date Maturity Date Stated Interest Rate Principal Balance Outstanding 9/30/2016 EMA Financial, LLC 10/14/2015 10/14/2016 12% $ 13,736 (1) Tangiers Investment Group, LLC 11/18/2015 11/19/2016 10% 35,941 (2) Kodiak Capital Group, LLC 11/30/2015 12/01/2016 12% 46,283 (8) Auctus Fund, LLC 12/03/2015 09/03/2016 10% 35,646 (3) Adar Bays, LLC 12/16/2015 12/16/2016 8% 27,510 (4) Kodiak Capital Group, LLC 12/15/2015 07/15/2016 0% 50,000 Colonial Stock Transfer 01/14/2016 01/14/2017 10% 6,605 Kodiak Capital Group, LLC 03/18/2016 03/18/2017 12% 25,000 (7) Blackbridge Capital, LLC 04/27/2016 10/27/2016 1% 4,500 (5) EMA Financial, LLC 05/05/2016 05/05/2017 12% 53,500 Kodiak Capital Group, LLC 05/23/2016 08/30/2016 1% 50,000 Black Forest Capital, LLC 05/31/2016 05/31/2017 8% 30,000 Black Forest Capital, LLC 05/31/2016 05/31/2017 2% 14,420 (6) Adar Bays, LLC 07/12/2016 04/12/2017 8% 35,000 Auctus Fund, LLC 07/20/2016 04/20/2017 10% 45,750 Kodiak Capital Group, LLC 08/18/2016 08/18/2017 12% 25,000 498,891 Less debt discount (42,797) $456,094 _______________ (1) Converted $19,564 of principal to common stock. (2) Converted $24,059 of principal to common stock. (3) Converted $13,604 of principal to common stock. (4) Converted $7,790 of principal to common stock. (5) Converted $45,500 of principal to common stock. (6) Converted $35,580 of principal to common stock. (7) Principal reduced to $25,000 per agreement dated August 18, 2016. (8) Converted $3,717 of principal to common stock. Accrued interest on the above notes was $24,661 and $6,210 as of September 30, 2016, and December 31, 2015, respectively. Debt discount expense including original issue discounts for the three and nine months ended September 30, 2016, was $86,291 and $502,140, respectively. Carrying value of all convertible notes, net of debt discounts, as of September 30, 2016, and December 31, 2015, is $463,594 and $152,966, respectively. Based on the fair value of the embedded conversion options on the day of issuance, a loss of $418,079 and $907,090 for the three and nine months ended September 30, 2016, was recorded in the statement of operations. | NOTE 11 – CONVERTIBLE NOTES PAYABLE On October 14, 2015, we entered into a Securities Purchase Agreement with EMA Financial, LLC ("EMA"), and executed a 10% Convertible Note in favor of EMA in the principal amount of $28,000. EMA funded the note on October 19, 2015 (the "Closing Date") less $3,000 through an original issue discount for its due diligence and legal fees. The note is unsecured, accrues interest at 10% per annum, and is due and payable on October 14, 2016. The outstanding amount due on the note is convertible into restricted shares of our common stock at any time during the term of the note at EMA's sole discretion at the conversion price of the lower of: (i) the closing sale price of the common stock on the trading day on immediately preceding the Closing Date; and (ii) 50% of the lowest sale price for the common stock during the 25 consecutive trading days immediately preceding the conversion date. This note was amended effective November 30, 2015, increasing the interest rate to 12% and the principal due to $30,800. As of December 31, 2015, $30,800 of principal and $685 of accrued interest remain outstanding. On November 18, 2015, we executed a 10% Convertible Promissory Note in favor of Tangiers Investment Group, LLC ("Tangiers"), in the total face value of $240,000. Tangiers funded the initial consideration of $60,000 under the note on November 18, 2015, less $10,000, which was retained by Tangiers through an original issue discount for due diligence and legal expenses related to the transaction. The note is unsecured, accrues interest at 10% per annum, and is due and payable on November 19, 2016. The outstanding amount due on the note is convertible into restricted shares of common stock after May 19, 2016, at Tangiers's sole discretion at the conversion price of 55% of the lowest sale price for the common stock during the 25 consecutive trading days immediately preceding the conversion date. As of December 31, 2015, $60,000 of principal and $723 of accrued interest remain outstanding. On November 30, 2015, we executed a 12% Convertible Promissory Note in favor of Kodiak Capital Group, LLC ("Kodiak"), in the total face value of $50,000. Kodiak funded the initial consideration of $35,000 under the note on November 30, 2015, less $15,000, which was retained by Kodiak through an original issue discount for due diligence and legal expenses related to the transaction. The note is unsecured, accrues interest at 12% per annum, and is due and payable on December 1, 2016. The outstanding amount due on the note is immediately convertible into restricted shares of our common stock, at Kodiak's sole discretion, at the lower of the closing bid price on the principal market on the trading day preceding the note date or 50% of the lowest closing bid price for the common stock during the 30 consecutive trading days immediately preceding the conversion date, with some exceptions. As of December 31, 2015, $50,000 of principal and $526 of accrued interest remain outstanding. On December 3, 2015, we entered into a Securities Purchase Agreement with Auctus Fund, LLC ("Auctus"), and executed a 10% Convertible Promissory Note in favor of Auctus, in the principal amount of $49,250. Auctus funded the consideration of $44,000 under the note on December 3, 2015, less $5,250, which was retained by Auctus through an original issue discount for due diligence and legal expenses related to the transaction. The note is unsecured, accrues interest at 10% per annum, and is due and payable on September 3, 2016. The outstanding amount due on the note is convertible into restricted shares of our common stock after December 3, 2015, at Auctus's sole discretion, at the conversion price of 55% of the lowest sale price for the common stock during the 25 consecutive trading days immediately preceding the conversion date. As of December 31, 2015, $49,250 of principal and $391 of accrued interest remain outstanding. On December 15, 2015, we entered into the Equity Purchase Agreement with Kodiak (the "EPA") that provides the terms and conditions for Kodiak's purchase of up to $1,000,000 of our common stock. Pursuant to the EPA, we also entered into a Registration Rights Agreement and Convertible Promissory Note due July 15, 2016, in the principal amount of $50,000 that represents the commitment fee paid to Kodiak under the EPA. The convertible note may be converted into restricted shares of our common stock at any time after May 15, 2016, at a conversion price equal to 50% of the lowest closing bid price for the common stock for the 30 trading dates ending on the trading day immediately before the relevant conversion date Under the Registration Rights Agreement, we were required to file an S-1 registration statement within 30 days of the closing date to register the shares of common stock to be purchased by Kodiak under the EPA. Kodiak extended the date for filing this registration statement until February 1, 2016. As of December 31, 2015, $50,000 of principal remain outstanding. On December 16, 2015, we entered into a Securities Purchase Agreement with Adar Bays, LLC, relating to the issuance and sale of two 8% convertible notes in the aggregate principal amount of $70,000 (each in the principal amount of $35,000), both of which are convertible into shares of our common stock, upon the terms and subject to the limitations and conditions set forth in the notes. The first $35,000 was funded on December 10, 2015, less $2,000, which was retained by Adar through an original issue discount for due diligence and legal expenses related to the transaction. The note is unsecured, accrues interest at 8% per annum, and is due and payable on December 10, 2016. The outstanding amount due on the note is convertible into restricted shares of common stock after June 10, 2016, at Adar's sole discretion, at the conversion price of 50% of the lowest sale price for the common stock during the 25 consecutive trading days immediately preceding the conversion date. We have no obligation to have the second note funded. As of December 31, 2015, $35,000 of principal and $169 of accrued interest remain outstanding. Note Holder Issue Date Maturity Date Stated Interest Rate Principal Balance Outstanding 12/31/2015 EMA Financial, LLC 10/14/2015 10/14/2016 10% $30,800 Tangiers Investment Group, LLC 11/18/2015 11/19/2016 10 60,000 Kodiak Capital 11/30/2015 12/01/2016 12 50,000 Auctus Fund, LLC 12/03/2015 09/03/2016 10 49,250 Adar Bays, LLC 12/10/2015 12/10/2016 8 35,000 Kodiak Capital 12/15/2015 07/15/2016 8 50,000 $275,050 Note Holder Initial Valuation Current Remaining Debt Discount to Amortize over Five Remaining Months Interest Expense Recognized for Immediately Convertible Notes and One Month of Amortization Balance 12/31/2015 EMA Financial, LLC $30,800 $- $30,800 $30,800 Tangiers Investment Group, LLC 60,000 (45,000) 15,000 15,000 Kodiak Capital 50,000 - 50,000 50,000 Auctus Fund, LLC 49,250 - 49,250 49,250 Adar Bays, LLC 35,000 (32,084) 2,916 2,916 Kodiak Capital 50,000 (45,000) 5,000 5,000 $275,050 $122,084 $152,966 $152,966 |
Note 12 - Stock Warrants
Note 12 - Stock Warrants | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Notes | ||
Note 12 - Stock Warrants | NOTE 12–STOCK WARRANTS The warrants issued by us are classified as equity. The fair value of the warrants calculated at the time of vesting was recorded as an increase to additional paid-in-capital. On December 20, 2015, pursuant to the terms of an arrangement with National Concessions Group, Inc., we agreed to issue warrants to purchase 2,500 shares of our common stock per quarter, at a price per share equal to the trailing 60-day volume weighted average price per share of our common stock, every quarter during the six quarters the services were to be provided. As of December 31, 2015, we had issued one warrant for 2,500 shares, with an aggregate fair value of $16,000 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.00, stock price of $6.40, 0.8% risk free rate, 848.1% volatility, and expected life of the warrant of 1.4 years. On December 24, 2015, we issued a warrant to purchase 150,000 shares of common stock to Michael Tew, our chief executive officer. As of December 31, 2015, the warrant had vested for 87,500 shares, with an aggregate fair value of $612,500. As of September 30, 2016, the warrant vested for another 25,000 shares, with an aggregate fair value of $175,000. The aggregate fair value is based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.00, stock price of $7.00, 1.33% risk free rate, 842% volatility, and expected life of the warrant of three years. On December 24, 2015, we issued a warrant to purchase 25,000 shares of common stock to Brandon Jennewine, our director. The aggregate fair value of the warrant totaled $175,000 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.00, stock price of $7.00, 1.33% risk free rate, 842% volatility, and expected life of the warrant of three years. On December 24, 2015, we issued a warrant to purchase 12,500 shares of common stock to Daniel J. Rogers, our director. The aggregate fair value of the warrant totaled $87,500 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.00, stock price of $7.00, 1.33% risk free rate, 842% volatility, and expected life of the warrant of three years. On December 24, 2015, we issued a warrant to purchase 7,500 shares of common stock to David Wollins, a former director. As of December 31, 2015, the warrant had vested for 1,875 shares. The aggregate fair value of the vested warrant totaled $13,125 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.00, stock price of $7.00, 1.33% risk free rate, 842% volatility, and expected life of the warrant of three years. On March 22, 2016, we accepted the resignation of Mr. Wollins resulting in the cancellation of the warrant for the remaining 5,625 shares. On January 13, 2016, pursuant to the terms of a promissory note with B44, LLC, we issued a warrant to purchase 11,250 shares of common stock. The aggregate fair value of the warrant totaled $69,750 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.00, stock price of $6.20, 1.15% risk free rate, 600% volatility, and expected life of the warrant of three years. On February 10, 2016, B44 exercised its right to a cashless conversion of its warrant, for which it received 8,804 shares of common stock. On January 21, 2016, we issued a warrant to purchase 15,625 shares of common stock to KiwiTech, LLC. The aggregate fair value of the warrant totaled $71,875 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $8.00, stock price of $4.60, 2.02% risk free rate, 600% volatility, and expected life of the warrant of 10 years. On January 24, 2016, pursuant to the terms of a consulting agreement, we issued a warrant to purchase 5,000 shares of common stock to Consigliere Inc., with an exercise price of $4.60 per share, that expires January 23, 2017. The aggregate fair value of the warrant totaled $28,967 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $4.60, stock price of $5.80, 0.47% risk free rate, 638% volatility, and expected life of the warrant of one year. On April 28, 2016, pursuant to the terms of a promissory note with Jeff Holmes, we issued a warrant to purchase 5,000 shares of common stock. The aggregate fair value of the warrant totaled $27,000 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.00, stock price of $5.40, 0.91% risk free rate, 1,177% volatility, and expected life of the warrant of 2.68 years. Shares Available to Purchase with Warrants Weighted Average Price Weighted Average Fair Value Outstanding, December 31, 2015 210,000 $1.00 $7.00 Issued 36,875 5.60 5.40 Exercised (11,250) - - Cancelled (5,625) - - Expired - - - Outstanding, September 30, 2016 230,000 $1.60 $6.80 Exercisable, September 30, 2016 200,000 $1.80 $6.60 Range of Exercise Prices Number Outstanding 9/30/2016 Weighted Average Remaining Contractual Life Weighted Average Exercise Price $1.00 - $8.00 230,000 2.6 years $1.80 | NOTE 12 – STOCK WARRANTS The warrants issued by us are classified as equity. The fair value of the warrants calculated at the time of vesting was recorded as an increase to additional paid-in-capital. Pursuant to the terms of a December 2015 consulting agreement with National Concessions Group, Inc., we agreed to issue warrants each quarter to purchase 2,500 shares of common stock, at a price per share equal to the trailing 60-day volume weighted average price per share of our common stock, up to a maximum of 15,000 shares. As of December 31, 2015, we had issued one warrant to purchase 2,500 shares of our common stock. The aggregate fair value of the warrant totaled $16,000 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.00, stock price of $6.40, 0.8% risk free rate, 848.1% volatility, and expected life of the warrants of 1.4 years. On December 24, 2015, we granted to Michael Tew, our chief executive officer, warrants to purchase 150,000 shares of common stock. As of December 31, 2015, 87,500 of the warrants have vested. The aggregate fair value of the vested warrants totaled $612,500 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.00, stock price of $7.00, 1.33% risk free rate, 842% volatility, and expected life of the warrants of three years. On December 24, 2015, we granted to Brandon Jennewine, our director, warrants to purchase 25,000 shares of common stock. The warrants were vested immediately upon grant. The aggregate fair value of the vested warrants totaled $175,000 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.00, stock price of $7.00, 1.33% risk free rate, 842% volatility, and expected life of the warrants of three years. On December 24, 2015, we granted to a consultant warrants to purchase 12,500 shares of common stock. The warrants were vested immediately upon grant. The aggregate fair value of the vested warrants totaled $87,500 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.00, stock price of $7.00, 1.33% risk free rate, 842% volatility, and expected life of the warrants of three years. On December 24, 2015, we granted to a director warrants to purchase 7,500 shares of common stock. As of December 31, 2015, 1,875 of the warrants have vested. The aggregate fair value of the vested warrants totaled $13,125 based on the Black-Scholes-Merton pricing model using the following estimates: exercise price of $1.0, stock price of $7.00, 1.33% risk free rate, 842% volatility, and expected life of the warrants of three years. On March 22, 2016, we accepted the resignation of the director resulting in the cancellation of the warrant for the remaining 5,625 shares. Shares Available to Purchase with Warrants Weighted Average Price Weighted Average Fair Value Outstanding, December 31, 2014 - $- $- Issued 210,000 1.00 7.00 Exercised - - - Cancelled (5,625) - - Expired - - - Outstanding, December 31, 2015 204,375 $1.00 $7.00 Exercisable, December 31, 2015 204,37 $1.00 $7.0 Range of Exercise Prices Number Outstanding 12/31/2015 Weighted Average Remaining Contractual Life Weighted Average Exercise Price $1.00 204,357 2.9 years $1.00 |
Note 13 - Stockholders' Equity
Note 13 - Stockholders' Equity (deficit) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Notes | ||
Note 13 - Stockholders' Equity (deficit) | NOTE 13–STOCKHOLDERS' EQUITY (DEFICIT) On February 9, 2015, we authorized the issuance of 1,250 shares of common stock per the terms of the licensing agreement with Loyl.Me LLC. The shares were valued at $40.00 per share, the closing stock price on the date of grant, for total noncash stock compensation expense of $50,000. On April 10, 2015, we authorized the issuance of 281 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $29.36 per share, the closing stock price on the date of grant, for total noncash stock compensation expense of $8,250. On July 10, 2015, we authorized the issuance of 1,202 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $20.80 per share, the closing stock price on the date of grant, for total noncash stock compensation expense of $25,000. On October 10, 2015, we authorized the issuance of 3,882 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $6.44 per share, the closing stock price on the date of grant, for total noncash stock compensation expense of $25,000. On November 10, 2015, we entered into an agreement to exchange 500,000 shares of our common stock for 10 million shares of MHB, Inc. Through this transaction, we acquired 49% of the issued and outstanding common shares of MHB, Inc. The shares were valued at $5.80 per share, the closing stock price on the date of grant, for a total of $2,900,000 . On January 14, 2016, we granted 2,500 shares of common stock to Convurge, LLC, the successor-in-interest to Loyl.Me LLC, in connection with an amendment to the license agreement. The shares were valued at $5.60 per share, the closing stock price on the date of grant, for a total noncash expense of $14,000 . On February 8, 2016, we issued 1,250 shares of common stock in consideration for accounting services rendered. The shares were valued at $5.00 per share, the closing stock price on the date of grant, for a total noncash expense of $6,250 . On February 11, 2016, we issued 3,125 shares of common stock in consideration for consulting services rendered. The shares were valued at $5.00 per share, the closing stock price on the date of grant, for a total noncash expense of $15,625 . On March 31, 2016, we entered into an Agreement of Termination, Compromise, Settlement and Mutual Release of Claims, with LuvBuds, LLC, Brett Harris, and Tag Distributing LLC, doing business as Consigliere Inc., to resolve, compromise, settle, and dispose of and any and all disputes and claims that existed or may exist among the parties. Pursuant to the terms of the agreement, Mr. Harris retained the stock grant for 15,000 shares of common stock. The shares were valued at $4.40 per share, the closing stock price on the date of grant, for a total noncash expense of $66,000 . On May 23, 2016, we entered into Amendment No. 1 to 10% Convertible Promissory Note of CannaSys to amend the terms of the 10% Convertible Promissory Note of CannaSys, Inc. dated November 18, 2015, with Tangiers Investment Group, LLC. In consideration of Tangiers Investment Group's agreement not to submit a notice of conversion prior to June 10, 2016, we issued a stock grant of 5,000 restricted shares of common stock to Tangiers Investment Group. The shares were valued at $1.20 per share, the closing stock price on the date of grant, for a total noncash expense of $6,000 . The following table reflects the amounts of principal converted, and the corresponding number of shares issued, in connection with outstanding convertible promissory notes during the quarter ended September 30, 2016: Shares Amount Converted Date Note Holder Price Issued Principal Interest 04/29/16 Blackbridge Capital $1.38 16,667 $25,000.00 $ - 05/03/16 EMA Financial LLC 1.50 3,500 5,250.00 - 05/19/16 Blackbridge Capital, LLC 0.02 6,061 (1) - 05/27/16 Blackbridge Capital, LLC 0.02 102,273 (1) - 05/27/16 EMA Financial LLC 0.12 50,000 5,500.00 - 06/03/16 Black Forest Capital. LLC 0.20 50,000 10,000.00 - 06/06/16 Auctus Fund, LLC 0.22 54,703 9,592.30 2,442 06/08/16 Blackbridge Capital, LLC 0.08 100,000 10,000.00 - 06/08/16 EMA Financial LLC 0.06 63,630 3,744.63 - 06/09/16 EMA Financial LLC 0.04 74,330 2,861.69 - 06/09/16 Tangiers Investment Group, LLC 0.08 135,065 10,400.00 - 06/10/16 Auctus Fund 0.08 53,370 4,011.67 98 06/10/16 Black Forest Capital. LLC 0.06 71,429 5,000.00 - 06/10/16 Blackbridge Capital, LLC 0.06 142,857 10,000.00 - 06/13/16 EMA Financial LLC 0.02 100,331 2,207.27 - 06/14/16 Blackbridge Capital, LLC 0.02 81,818 (2) - 06/14/16 Tangiers Investment Group, LLC 0.06 184,298 11,150.00 - 06/15/16 Black Forest Capital. LLC 0.06 90,909 5,000.00 - 06/16/16 Tangiers Investment Group, LLC 0.04 55,632 2,509.00 - 06/17/16 Black Forest Capital. LLC 0.04 122,500 5,022.50 - 06/17/16 Blackbridge Capital, LLC 0.02 101,045 (3) - 06/20/16 Adar Bays LLC 0.04 107,692 4,415.39 - 06/20/16 Blackbridge Capital, LLC 0.02 62,084 (2) - 06/21/16 Black Forest Capital. LLC 0.04 122,500 5,022.50 - 06/22/16 Black Forest Capital. LLC 0.04 135,000 5,535.00 - 06/27/16 Blackbridge Capital, LLC 0.04 12,195 500.00 - 07/08/16 Adar Bays LLC 0.04 75,000 3,075.00 - 07/15/16 Kodiak Capital Group LLC 0.02 158,183 3,717.00 - 2,333,072 $149,513.95 $2,540 _______________ (1) Additional shares issued for the April 29, 2016, conversion. (2) Additional shares issued for the June 8, 2016, conversion. (3) Additional shares issued for the June 10, 2016, conversion. | NOTE 13 – STOCKHOLDERS' EQUITY (DEFICIT) During the year ended December 31, 2014, we sold 102,000 shares of common stock to B44 LLC for total cash proceeds of $200,000 . During the year ended December 31, 2014, we issued 33,750 share of common stock for compensation of $1,012,500 . During the year ended December 31, 2014, we issued 50,000 shares of common stock for total cash proceeds of $500,000 . During the year ended December 31, 2014, we issued 32,284 shares of common stock for total cash proceeds of $387,400 . In connection with the Merger consummated on or about August 15, 2014, we issued a total of 300,000 unregistered shares of common stock to a total of 17 persons in exchange for 100% of the issued and outstanding shares of CannaSys-Colorado. Our shareholders prior to the merger retained an aggregate of 136,154 shares of common stock, eliminating 80,096 shares in consolidation. The Merger was consummated in order to raise capital for the Company to allow it to deliver its products to market. On February 9, 2015, we authorized the issuance of 1,250 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $40.00 per share, 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 281 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $29.36 per share, the closing stock price on the date of grant, for total non-cash stock compensation expense of $8,250. On July 10, 2015, we authorized the issuance of 1,202 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $20.80 per share, the closing stock price on the date of grant, for total non-cash stock compensation expense of $25,000. On October 10, 2015, we authorized the issuance of 3,882 shares of common stock per the terms of the licensing agreement with Loyl.Me. The shares were valued at $6.44 per share, the closing stock price on the date of grant, for total non-cash stock compensation expense of $25,000. On November 10, 2015, we entered into an agreement to exchange 500,000 shares of our common stock for 10 million shares of MHB, Inc. Through this transaction, we acquired 49% of the issued and outstanding common shares of MHB, Inc. The shares were valued at $5.80 per share, the closing stock price on the date of grant, for a total of $2,900,000 . |
Note 14- Preferred Stock
Note 14- Preferred Stock | 9 Months Ended |
Sep. 30, 2016 | |
Notes | |
Note 14- Preferred Stock | NOTE 14–PREFERRED STOCK On July 27, 2016, we entered into a Share Exchange Agreement to exchange 1,515,000 pre-reverse-split shares of our common stock owned by F-Squared Enterprises, LLC, for 1,515,000 shares of our Series A Preferred Stock. Brandon C. Jennewine, our director, is the sole member of F-Squared Enterprises, LLC. As provided in the terms of the Series A Preferred Stock, upon October 17, 2016, the effective date of our recapitalization, the Series A Preferred Stock was automatically converted into 75,750 shares of common stock. On July 29, 2016, we filed an Amendment to the Articles of Incorporation Designating Rights, Privileges, and Preferences of Series A Preferred Stock with the Nevada Secretary of State respecting 1,515,000 shares of Series A Preferred Stock. The Series A Preferred Stock ranks equal to our common stock respecting the payment of dividends and distribution of assets upon liquidation, dissolution, or winding up. Each share is entitled to 50 votes, voting with the common stock as a single class. |
Note 15 - Subsequent Events
Note 15 - Subsequent Events | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Notes | ||
Note 15 - Subsequent Events | NOTE 15–SUBSEQUENT EVENTS In accordance with ASC 855-10, Subsequent Events On October 17, 2016, we completed a recapitalization of our company, consisting of a 20-to-one reverse split and an increase of authorized capitalization to 2,000,000,000 shares of common stock and 5,000,000 shares of preferred stock, par value $0.001. This recapitalization triggered the automatic conversion of the 1,515,000 shares of Series A Preferred Stock to 75,750 shares of common stock. Our amended and restated articles of incorporation authorize us to issue 2,500,000,000 shares of capital stock, consisting of 2,000,000,000 shares of common stock, par value $0.001, and 5,000,000 shares of preferred stock, par value $0.001. On November 1, 2016, we issued 50,000 shares of our common stock to Patrick G. Burke pursuant to a consulting agreement to engage his services as our chief operating officer. The consulting agreement also provides for the issuance of 50,000 shares on January 1, 2017, and 50,000 shares on March 1, 2017. On November 4, 2016, pursuant to a note purchase and assignment agreement dated October 31, 2016, B44 LLC agreed to assign its two promissory notes ($50,000 issued on September 6, 2015 and $75,000 issued on January 13, 2016) to an unaffiliated accredited investor. Under the note purchase and assignment agreement, the accredited investor paid $25,000 to B44 and has the option to purchase B44's remaining interest in the notes in four additional tranches of $25,000 each in its sole discretion. As part of this transaction, we issued a replacement convertible promissory note to the accredited investor that provides for interest at 2% per annum and conversion of any amounts funded by the replacement note into shares of CannaSys common stock in accordance with its terms. The principal sum and related interest due to the holder shall be prorated based on the number of tranches actually acquired by the holder from B44. On November 4, 2016, an accredited investor funded $25,000, the first tranche of an 8% Convertible Promissory Note up to $137,500 under the Securities Purchase Agreement with an accredited investor. We received $23,000, less $2,000 retained by the accredited investor for its legal fees and expenses. The Securities Purchase Agreement and Convertible Promissory Note provide for funding up to $137,500, in tranches of $25,000 each, with additional tranches in the sole discretion of the accredited investor, resulting in funding up to $125,000 with total original issue discounts of $12,500 pro rated per tranche under the note. The outstanding amounts funded under the convertible note are convertible into shares of our common stock in accordance with its terms. Subsequent to September 30, 2016, we issued shares of common stock in conversion of principal on our outstanding convertible notes as follows: Amount Converted Date Note Holder Price Shares Issued Principal Interest 10/07/2016 Kodiak Capital Group LLC $0.007 163,044 $ 222.82 10/17/2016 Auctus Fund LLC 0.000 166,039 2,374.35 10/17/2016 Black Forest Capital, LLC 0.013 174,000 2,262.00 10/18/2016 EMA Financial LLC 0.005 179,800 934.60 10/20/2016 Black Forest Capital, LLC 0.013 190,770 2,480.00 10/21/2016 Black Forest Capital, LLC 0.013 210,000 2,730.00 10/20/2016 Auctus Fund LLC 0.014 174,170 2,490.63 10/21/2016 EMA Financial LLC 0.005 216,450 1,125.54 10/19/2016 Microcap Equity Group LLC 0.013 174,153 2,264.00 10/20/2016 Colonial Stock Transfer 0.012 205,128 2,400.00 10/24/2016 Black Forest Capital, LLC 0.013 239,000 3,107.00 10/24/2016 Microcap Equity Group LLC 0.013 239,230 3,110.00 10/24/2016 Auctus Fund LLC 0.010 239,600 2,491.84 10/25/2016 Black Forest Capital, LLC 0.013 259,000 3,367.00 10/26/2016 Microcap Equity Group LLC 0.013 260,153 3,382.00 10/26/2016 Adar Bays LLC 0.020 250,000 5,000.00 10/26/2016 Auctus Fund LLC 0.010 284,100 2,954.64 10/26/2016 EMA Financial LLC 0.005 293,300 1,525.16 10/27/2016 Microcap Equity Group LLC 0.013 260,153 3,382.00 10/28/2016 Black Forest Capital, LLC 0.013 311,285 4,000.00 10/28/2016 Adar Bays LLC 0.012 342,412 4,150.00 10/28/2016 Microcap Equity Group LLC 0.012 373,913 4,300.00 10/31/2016 Kodiak Capital Group LLC 0.000 171,000 1,453.50 10/31/2016 EMA Financial LLC 0.005 429,213 1,974.38 10/31/2016 Auctus Fund LLC 0.009 374,500 3,445.40 10/31/2016 Adar Bays LLC 0.011 373,913 4,050.00 10/31/2016 Microcap Equity Group LLC 0.012 414,956 4,772.00 10/31/2016 Kodiak Capital Group LLC 0.000 824,694 309.26 11/1/2016 Adar Bays LLC 0.011 469,565 5,150.00 11/2/2016 Black Forest Capital, LLC 0.011 370,000 3,977.50 11/2/2016 EMA Financial LLC 0.004 530,500 2,153.83 11/2/2016 Microcap Equity Group LLC 0.010 512,315 5,200.00 11/2/2016 Adar Bays LLC 0.010 465,116 4,750.00 11/3/2016 Auctus Fund LLC 0.008 374,500 3,040.94 11/3/2016 Adar Bays LLC 0.005 462,264 2,200.00 11/3/2016 Microcap Equity Group LLC 0.000 497,767 (1) 11/4/2016 Tangiers Investment Group, LLC 0.005 1,381,761 6,591.00 11/4/2016 Adar Bays LLC 0.003 664,528 1,750.00 11/4/2016 Black Forest Capital, LLC 0.003 690,000 2,090.33 $1,566.77 11/7/2016 Adar Bays LLC 0.005 513,585 2,472.00 - 11/8/2016 Auctus Fund LLC 0.005 867,000 3,960.91 61.97 11/8/2016 EMA Financial LLC 0.002 895,500 1,898.46 - 11/8/2106 Black Forest Capital, LLC 0.005 301,436 1,593.77 3.84 16,789,813 $122,886.86 $1,632.58 _______________ (1) Additional shares issued for adjustment to prior conversion price. | NOTE 15 – SUBSEQUENT EVENTS In accordance with FASB ASC 855-10, Subsequent Events On February 8, 2016, we granted 1,250 shares of common stock in consideration for accounting services rendered. Subsequent to December 31, 2015, we granted to Viridian Capital Advisors, LLC warrants to purchase 12,500 shares of common stock for consideration of consulting services provided. On January 13, 2016, we executed a promissory note for $75,000 with B44, LLC. The note is unsecured, accrues interest at 1% per annum, and is due and payable on June 30, 2016. In connection with the execution of the promissory note, we also issued warrants to purchase 11,250 shares of our common stock. On January 14, 2016, we converted an account payable to Colonial Stock Transfer Company, Inc., in the amount of $6,605 into a convertible promissory note. The convertible note is unsecured, accrues interest at 10% per annum, and is due and payable on January 14, 2017. The outstanding amount due on the note is immediately convertible into restricted shares of our common stock, at Colonial's sole discretion, at a conversion price equal to 55% of the lowest trade price for the common stock during the 25 consecutive trading days immediately preceding the conversion date. On January 14, 2016, we granted 2,500 shares of common stock to Convurge, LLC, the successor-in-interest to Loyl.Me LLC, in connection with an amendment to the license agreement. On January 24, 2016, pursuant to the terms of a consulting agreement, we issued a warrant to purchase 5,000 shares of our common stock to Consigliere Inc. The warrant is fully vested with an exercise price of $4.60 per share and expires January 23, 2017. On January 21, 2016, we issued to KiwiTech, LLC, a warrant to purchase 312,500 shares of common stock at the exercise price of $8.00 per share, with an expiration date of December 31, 2025. On March 18, 2016, we entered into a Securities Purchase Agreement ("SPA") with Kodiak Capital Group, LLC, and executed two 12% Convertible Redeemable Promissory Notes, each in the principal amount of $50,000. On March 18, 2016, Kodiak funded the first note for $35,000, less $15,000 in due diligence costs and attorney fees, which was retained by Kodiak. Under the terms of the SPA and the second note, the second note is initially paid for by Kodiak's issuance to us of an offsetting secured note for $50,000 (the "Buyer Note"). The terms of the second note do not become effective until Kodiak funds the Buyer Note, which funding is in our sole discretion. The first note and the second note (when funded by the offsetting Buyer Note) accrue interest at the rate of 12% per annum and mature on March 18, 2017 . The outstanding amounts due under the notes are immediately convertible into restricted shares of our common stock after 180 days from the issue date, at Kodiak's sole discretion, at 50% of the lowest closing bid price for the common stock during the 30 consecutive trading days immediately preceding the conversion date, with some exceptions. On March 31, 2016, we, LuvBuds, LLC ("LuvBuds"), Brett Harris ("Harris"), and Tag Distributing LLC, doing business as Consigliere Inc. ("Consigliere"), entered into an Agreement of Termination, Compromise, Settlement and Mutual Release of Claims to resolve, compromise, settle, and dispose of and any and all disputes and claims that exist or may exist among them. The agreement, among other things: (1) terminates the Asset Purchase Agreement of December 17, 2015, among us, LuvBuds, and Harris; (2) terminates the Consulting Agreement of January, 24, 2016, between us and Consigliere; (3) confirms retention by Harris of the stock grant for 15,000 shares of our common stock; (4) confirms retention by Harris of the warrant to purchase 5,000 shares of our common stock; (5) assigns the 70% membership interest in LuvBuds from us to Harris, with Harris assuming the obligations and duties related thereto; and (6) assigns the acquired assets in LuvBuds from us to Harris. Due to termination of the agreement, there was no financial impact during the year December 31, 2015. |
Note 9 - Related-party Transact
Note 9 - Related-party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 9 - Related-party Transactions | NOTE 9 – 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 nine months ended 30, 2015. Refer to Note 12 for warrants issued. |
Note 14 - Income Tax
Note 14 - Income Tax | 12 Months Ended |
Dec. 31, 2015 | |
Notes | |
Note 14 - Income Tax | NOTE 14 – INCOME TAX Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Net deferred tax assets consist of the following components as of December 31: 2015 2014 Deferred Tax Assets: NOL Carryover $1,493,600 $188,900 Related-party accrual - 500 Depreciation 300 1,500 Payroll accrual 6,000 - Deferred tax liabilities: Less valuation allowance (1,499,900) (190,900) Net deferred tax assets $- $- The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the period ended December 31, due to the following: 2015 2014 Book Income (loss) $(1,504,600) $(583,800) Meals and entertainment 1,600 1,000 Depreciation (300) (1,500) Other nondeductible expenses 77,900 394,900 Payroll accrual 6,000 Related party accruals (500) 500 Valuation allowance 1,419,900 188,900 ~ ~ At December 31, 2015, we had net operating loss carryforwards of approximately $2,072,000 that may be offset against future taxable income through the year 2035. No tax benefit has been reported in the December 31, 2015, financial statements since the potential tax benefit is offset by a valuation allowance of the same amount. Previous to June 26, 2014, we were a limited liability company treated as a pass-through entity. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years. |
Note 2 - Summary of Significa24
Note 2 - Summary of Significant Accounting Policies (Policies) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Policies | ||
Basis of Unaudited Interim Financial Information | Basis of Unaudited Interim Financial Information 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-K for the year ended December 31, 2015. The results of the nine months ended September 30, 2016, are not necessarily indicative of the results to be expected for the full year ending December 31, 2016. 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: (i) recorded transactions are valid; (ii) valid transactions are recorded; and (iii) 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. | Basis of Presentation Our 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 do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. 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. All share and per-share amounts in the accompanying consolidated financial statements have been adjusted to give retroactive effect to the Recapitalization. |
Revenue Recognition | Revenue Recognition We follow Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 605-10-S99-1, Revenue Recognition, | Revenue Recognition We follow paragraph ASC 605-10-S99-1 for revenue recognition. We will recognize revenue when it is realized or realizable and earned. We consider revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists; (ii) the product has been shipped or the services have been rendered to the customer; (iii) the sales price is fixed or determinable; and (iv) collectability is reasonably assured. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In September 2015, the FASB issued Accounting Standards Update ("ASU") No. 2015-16, Business Combinations (Topic 805). In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) Leases (FAS 13) We have reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our 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. | 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 Entity's Ability to Continue as a Going Concern substantial doubt We have implemented all new accounting pronouncements that are in effect. 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. |
Basis of Presentation | Basis of Unaudited Interim Financial Information 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-K for the year ended December 31, 2015. The results of the nine months ended September 30, 2016, are not necessarily indicative of the results to be expected for the full year ending December 31, 2016. 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: (i) recorded transactions are valid; (ii) valid transactions are recorded; and (iii) 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. | Basis of Presentation Our 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 do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should we be unable to continue as a going concern. 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. All share and per-share amounts in the accompanying consolidated financial statements have been adjusted to give retroactive effect to the Recapitalization. |
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 maintain our cash balance at a financial institution located in Colorado. Accounts at this institution are insured by the Federal Deposit Insurance Corporation up to $250,000. As of December 31, 2015 and 2014, we had a cash balance of $7,720 and $525,720, respectively. We had an uninsured balance of $275,750 at December 31, 2014. We have not experienced any losses in such accounts, and management believes it is not exposed to any significant credit risk on cash. | |
Accounts Receivable | Accounts Receivable Revenues that have been recognized but not yet received are recorded as accounts receivable. Losses on receivables will be recognized when it is more likely than not that a receivable will not be collected. An allowance for estimated uncollectible amounts will be recognized to reduce the amount of receivables to its net realizable value. The need for an allowance for uncollectible amounts is evaluated quarterly. We have not deemed it necessary to establish an allowance for doubtful accounts as of December 31, 2015 and 2014. | |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior year financial information to conform to the presentation used in the financial statements for the year ended December 31, 2015. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments We follow paragraph 825-10-50-10 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB ASC to measure the fair value of our financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value U.S. GAAP and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by paragraph 820-10-35-37 are described below: Level 1: Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2: Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3: Pricing inputs that are generally observable inputs and not corroborated by market data. The carrying amount of our financial assets and liabilities, such as cash, prepaid expenses, and accrued expenses, approximate their fair value because of the short maturity of those instruments. Our notes payable approximate the fair value of such instruments based upon management's best estimate of interest rates that would be available to us for similar financial arrangements at December 31, 2015. | |
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 lives of the assets of three years. | |
Earnings (loss) Per Common Share | Earnings (Loss) per Common Share Net income (loss) per common share is computed pursuant to paragraph ASC 260-10-45. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period. The weighted average number of common shares outstanding and potentially outstanding common shares assumes that we incorporated as of the beginning of the first period presented. Our diluted loss per share is the same as the basic loss per share for the years ended December 31, 2015 and 2014, as the inclusion of any potential shares would have had an anti-dilutive effect due to our generating a loss. | |
Stock-based Compensation | Stock-based Compensation We account for equity-based transactions with nonemployees under the provisions of ASC Topic No. 505-50, Equity-Based Payments to Non-Employees We account for employee stock-based compensation in accordance with the guidance of FASB ASC Topic No. 718, Compensation—Stock Compensation, | |
Valuation of Intangibles and Long-lived Assets | Valuation of Intangibles and Long-Lived Assets We test intangibles and long-lived assets for recoverability when changes in circumstances indicate the carrying value may not be recoverable, for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, and significant negative industry or economic trends. We evaluate recoverability of an asset by comparing its carrying value to the future net undiscounted cash flows that we expect will be generated by the asset. If the comparison indicates that the carrying value of an asset is not recoverable, we recognize an impairment loss for the excess of carrying value over the estimated fair value. | |
Income Taxes | Income Taxes We follow paragraph 740-10-30 of the FASB ASC, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the fiscal year in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the Statements of Income in the period that includes the enactment date. We adopted paragraph 740-10-25 of the FASB ASC with regards to uncertainty income taxes. Paragraph 740-10-25 addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under paragraph 740-10-25, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Paragraph 740-10-25 also provides guidance on derecognition, classification, interest, penalties on income taxes, and accounting in interim periods and requires increased disclosures. We had no material adjustments to our liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25. |
Note 4 - Property and Equipme25
Note 4 - Property and Equipment (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Tables/Schedules | ||
Schedule of Property and Equipment | Furniture, fixtures, and equipment, stated at cost, less accumulated depreciation, consisted of the following: September 30, 2016 December 31, 2015 Furniture, fixtures, and equipment $- $8,403 Software 221,000 - Less: accumulated depreciation (12,412) (3,225) Fixed assets, net $208,588 $5,178 | Furniture, fixtures, and equipment, stated at cost, less accumulated depreciation consisted of the following at December 31: 2015 2014 Furniture, fixtures, and equipment $8,403 $8,403 Less: accumulated depreciation (3,225) (416) Fixed assets, net $5,178 $7,987 |
Note 7 - Investment in Mile H26
Note 7 - Investment in Mile High Brands (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Tables/Schedules | ||
Schedule of Financial Statements of MHB | Nine Months Ended September 30, 2016 Sales revenue $41,629 Cost of sales 15,897 Gross margin 25,372 Operating Expenses: General and administrative 9,466 Total operating expenses 9,466 Income from operations 15,906 Other expense: Interest expense - Total other expense - Net income $15,906 Net income attributed to Cannasys, Inc. $7,794 | |
Schedule of Financial Statements of MHB | November 11, 2015 through December 31, 2015 Sales revenue $7,713 Cost of sales 60 Gross margin 7,653 Operating Expenses: General and administrative 14,985 Total operating expenses 14,985 Loss from operations (7,332) Other expense: Interest expense (851) Total other expense (851) Net loss $(8,183) Net loss attributed to CannaSys, Inc. $(4,010) |
Note 11 - Convertible Notes P27
Note 11 - Convertible Notes Payable (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Tables/Schedules | ||
Schedule of Short Term Debt and Maturities | The following is a summary of outstanding convertible promissory notes as of December 31, 2015: Note Holder Issue Date Maturity Date Stated Interest Rate Principal Balance Outstanding 12/31/2015 EMA Financial, LLC 10/14/2015 10/14/2016 10% $ 30,800 Tangiers Investment Group, LLC 11/18/2015 11/19/2016 10% 60,000 Kodiak Capital Group, LLC 11/30/2015 12/01/2016 12% 50,000 Auctus Fund, LLC 12/03/2015 09/03/2016 10% 49,250 Adar Bays, LLC 12/10/2015 12/10/2016 8% 35,000 Kodiak Capital Group, LLC 12/15/2015 07/15/2016 0% 50,000 275,050 Less debt discount (122,084) $ 152,966 The following is a summary of outstanding convertible promissory notes as of September 30, 2016: Note Holder Issue Date Maturity Date Stated Interest Rate Principal Balance Outstanding 9/30/2016 EMA Financial, LLC 10/14/2015 10/14/2016 12% $ 13,736 (1) Tangiers Investment Group, LLC 11/18/2015 11/19/2016 10% 35,941 (2) Kodiak Capital Group, LLC 11/30/2015 12/01/2016 12% 46,283 (8) Auctus Fund, LLC 12/03/2015 09/03/2016 10% 35,646 (3) Adar Bays, LLC 12/16/2015 12/16/2016 8% 27,510 (4) Kodiak Capital Group, LLC 12/15/2015 07/15/2016 0% 50,000 Colonial Stock Transfer 01/14/2016 01/14/2017 10% 6,605 Kodiak Capital Group, LLC 03/18/2016 03/18/2017 12% 25,000 (7) Blackbridge Capital, LLC 04/27/2016 10/27/2016 1% 4,500 (5) EMA Financial, LLC 05/05/2016 05/05/2017 12% 53,500 Kodiak Capital Group, LLC 05/23/2016 08/30/2016 1% 50,000 Black Forest Capital, LLC 05/31/2016 05/31/2017 8% 30,000 Black Forest Capital, LLC 05/31/2016 05/31/2017 2% 14,420 (6) Adar Bays, LLC 07/12/2016 04/12/2017 8% 35,000 Auctus Fund, LLC 07/20/2016 04/20/2017 10% 45,750 Kodiak Capital Group, LLC 08/18/2016 08/18/2017 12% 25,000 498,891 Less debt discount (42,797) $456,094 _______________ (1) Converted $19,564 of principal to common stock. (2) Converted $24,059 of principal to common stock. (3) Converted $13,604 of principal to common stock. (4) Converted $7,790 of principal to common stock. (5) Converted $45,500 of principal to common stock. (6) Converted $35,580 of principal to common stock. (7) Principal reduced to $25,000 per agreement dated August 18, 2016. (8) Converted $3,717 of principal to common stock. | Note Holder Issue Date Maturity Date Stated Interest Rate Principal Balance Outstanding 12/31/2015 EMA Financial, LLC 10/14/2015 10/14/2016 10% $30,800 Tangiers Investment Group, LLC 11/18/2015 11/19/2016 10 60,000 Kodiak Capital 11/30/2015 12/01/2016 12 50,000 Auctus Fund, LLC 12/03/2015 09/03/2016 10 49,250 Adar Bays, LLC 12/10/2015 12/10/2016 8 35,000 Kodiak Capital 12/15/2015 07/15/2016 8 50,000 $275,050 |
Schedule of Short-Term Debt and Amortization | Note Holder Initial Valuation Current Remaining Debt Discount to Amortize over Five Remaining Months Interest Expense Recognized for Immediately Convertible Notes and One Month of Amortization Balance 12/31/2015 EMA Financial, LLC $30,800 $- $30,800 $30,800 Tangiers Investment Group, LLC 60,000 (45,000) 15,000 15,000 Kodiak Capital 50,000 - 50,000 50,000 Auctus Fund, LLC 49,250 - 49,250 49,250 Adar Bays, LLC 35,000 (32,084) 2,916 2,916 Kodiak Capital 50,000 (45,000) 5,000 5,000 $275,050 $122,084 $152,966 $152,966 |
Note 12 - Stock Warrants (Table
Note 12 - Stock Warrants (Tables) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Tables/Schedules | ||
Schedule of Warrants, Activity | Shares Available to Purchase with Warrants Weighted Average Price Weighted Average Fair Value Outstanding, December 31, 2015 210,000 $1.00 $7.00 Issued 36,875 5.60 5.40 Exercised (11,250) - - Cancelled (5,625) - - Expired - - - Outstanding, September 30, 2016 230,000 $1.60 $6.80 Exercisable, September 30, 2016 200,000 $1.80 $6.60 Range of Exercise Prices Number Outstanding 9/30/2016 Weighted Average Remaining Contractual Life Weighted Average Exercise Price | Shares Available to Purchase with Warrants Weighted Average Price Weighted Average Fair Value Outstanding, December 31, 2014 - $- $- Issued 210,000 1.00 7.00 Exercised - - - Cancelled (5,625) - - Expired - - - Outstanding, December 31, 2015 204,375 $1.00 $7.00 Exercisable, December 31, 2015 204,37 $1.00 $7.0 Range of Exercise Prices Number Outstanding 12/31/2015 Weighted Average Remaining Contractual Life Weighted Average Exercise Price $1.00 204,357 2.9 years $1.00 |
Note 13 - Stockholders' Equit29
Note 13 - Stockholders' Equity (deficit) (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Tables/Schedules | |
Schedule of Debt Conversions | The following table reflects the amounts of principal converted, and the corresponding number of shares issued, in connection with outstanding convertible promissory notes during the quarter ended September 30, 2016: Shares Amount Converted Date Note Holder Price Issued Principal Interest 04/29/16 Blackbridge Capital $1.38 16,667 $25,000.00 $ - 05/03/16 EMA Financial LLC 1.50 3,500 5,250.00 - 05/19/16 Blackbridge Capital, LLC 0.02 6,061 (1) - 05/27/16 Blackbridge Capital, LLC 0.02 102,273 (1) - 05/27/16 EMA Financial LLC 0.12 50,000 5,500.00 - 06/03/16 Black Forest Capital. LLC 0.20 50,000 10,000.00 - 06/06/16 Auctus Fund, LLC 0.22 54,703 9,592.30 2,442 06/08/16 Blackbridge Capital, LLC 0.08 100,000 10,000.00 - 06/08/16 EMA Financial LLC 0.06 63,630 3,744.63 - 06/09/16 EMA Financial LLC 0.04 74,330 2,861.69 - 06/09/16 Tangiers Investment Group, LLC 0.08 135,065 10,400.00 - 06/10/16 Auctus Fund 0.08 53,370 4,011.67 98 06/10/16 Black Forest Capital. LLC 0.06 71,429 5,000.00 - 06/10/16 Blackbridge Capital, LLC 0.06 142,857 10,000.00 - 06/13/16 EMA Financial LLC 0.02 100,331 2,207.27 - 06/14/16 Blackbridge Capital, LLC 0.02 81,818 (2) - 06/14/16 Tangiers Investment Group, LLC 0.06 184,298 11,150.00 - 06/15/16 Black Forest Capital. LLC 0.06 90,909 5,000.00 - 06/16/16 Tangiers Investment Group, LLC 0.04 55,632 2,509.00 - 06/17/16 Black Forest Capital. LLC 0.04 122,500 5,022.50 - 06/17/16 Blackbridge Capital, LLC 0.02 101,045 (3) - 06/20/16 Adar Bays LLC 0.04 107,692 4,415.39 - 06/20/16 Blackbridge Capital, LLC 0.02 62,084 (2) - 06/21/16 Black Forest Capital. LLC 0.04 122,500 5,022.50 - 06/22/16 Black Forest Capital. LLC 0.04 135,000 5,535.00 - 06/27/16 Blackbridge Capital, LLC 0.04 12,195 500.00 - 07/08/16 Adar Bays LLC 0.04 75,000 3,075.00 - 07/15/16 Kodiak Capital Group LLC 0.02 158,183 3,717.00 - 2,333,072 $149,513.95 $2,540 _______________ (1) Additional shares issued for the April 29, 2016, conversion. (2) Additional shares issued for the June 8, 2016, conversion. (3) Additional shares issued for the June 10, 2016, conversion. |
Note 15 - Subsequent Events (Ta
Note 15 - Subsequent Events (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Schedule of Debt Conversions | The following table reflects the amounts of principal converted, and the corresponding number of shares issued, in connection with outstanding convertible promissory notes during the quarter ended September 30, 2016: Shares Amount Converted Date Note Holder Price Issued Principal Interest 04/29/16 Blackbridge Capital $1.38 16,667 $25,000.00 $ - 05/03/16 EMA Financial LLC 1.50 3,500 5,250.00 - 05/19/16 Blackbridge Capital, LLC 0.02 6,061 (1) - 05/27/16 Blackbridge Capital, LLC 0.02 102,273 (1) - 05/27/16 EMA Financial LLC 0.12 50,000 5,500.00 - 06/03/16 Black Forest Capital. LLC 0.20 50,000 10,000.00 - 06/06/16 Auctus Fund, LLC 0.22 54,703 9,592.30 2,442 06/08/16 Blackbridge Capital, LLC 0.08 100,000 10,000.00 - 06/08/16 EMA Financial LLC 0.06 63,630 3,744.63 - 06/09/16 EMA Financial LLC 0.04 74,330 2,861.69 - 06/09/16 Tangiers Investment Group, LLC 0.08 135,065 10,400.00 - 06/10/16 Auctus Fund 0.08 53,370 4,011.67 98 06/10/16 Black Forest Capital. LLC 0.06 71,429 5,000.00 - 06/10/16 Blackbridge Capital, LLC 0.06 142,857 10,000.00 - 06/13/16 EMA Financial LLC 0.02 100,331 2,207.27 - 06/14/16 Blackbridge Capital, LLC 0.02 81,818 (2) - 06/14/16 Tangiers Investment Group, LLC 0.06 184,298 11,150.00 - 06/15/16 Black Forest Capital. LLC 0.06 90,909 5,000.00 - 06/16/16 Tangiers Investment Group, LLC 0.04 55,632 2,509.00 - 06/17/16 Black Forest Capital. LLC 0.04 122,500 5,022.50 - 06/17/16 Blackbridge Capital, LLC 0.02 101,045 (3) - 06/20/16 Adar Bays LLC 0.04 107,692 4,415.39 - 06/20/16 Blackbridge Capital, LLC 0.02 62,084 (2) - 06/21/16 Black Forest Capital. LLC 0.04 122,500 5,022.50 - 06/22/16 Black Forest Capital. LLC 0.04 135,000 5,535.00 - 06/27/16 Blackbridge Capital, LLC 0.04 12,195 500.00 - 07/08/16 Adar Bays LLC 0.04 75,000 3,075.00 - 07/15/16 Kodiak Capital Group LLC 0.02 158,183 3,717.00 - 2,333,072 $149,513.95 $2,540 _______________ (1) Additional shares issued for the April 29, 2016, conversion. (2) Additional shares issued for the June 8, 2016, conversion. (3) Additional shares issued for the June 10, 2016, conversion. |
Subsequent Event | |
Schedule of Debt Conversions | Subsequent to September 30, 2016, we issued shares of common stock in conversion of principal on our outstanding convertible notes as follows: Amount Converted Date Note Holder Price Shares Issued Principal Interest 10/07/2016 Kodiak Capital Group LLC $0.007 163,044 $ 222.82 10/17/2016 Auctus Fund LLC 0.000 166,039 2,374.35 10/17/2016 Black Forest Capital, LLC 0.013 174,000 2,262.00 10/18/2016 EMA Financial LLC 0.005 179,800 934.60 10/20/2016 Black Forest Capital, LLC 0.013 190,770 2,480.00 10/21/2016 Black Forest Capital, LLC 0.013 210,000 2,730.00 10/20/2016 Auctus Fund LLC 0.014 174,170 2,490.63 10/21/2016 EMA Financial LLC 0.005 216,450 1,125.54 10/19/2016 Microcap Equity Group LLC 0.013 174,153 2,264.00 10/20/2016 Colonial Stock Transfer 0.012 205,128 2,400.00 10/24/2016 Black Forest Capital, LLC 0.013 239,000 3,107.00 10/24/2016 Microcap Equity Group LLC 0.013 239,230 3,110.00 10/24/2016 Auctus Fund LLC 0.010 239,600 2,491.84 10/25/2016 Black Forest Capital, LLC 0.013 259,000 3,367.00 10/26/2016 Microcap Equity Group LLC 0.013 260,153 3,382.00 10/26/2016 Adar Bays LLC 0.020 250,000 5,000.00 10/26/2016 Auctus Fund LLC 0.010 284,100 2,954.64 10/26/2016 EMA Financial LLC 0.005 293,300 1,525.16 10/27/2016 Microcap Equity Group LLC 0.013 260,153 3,382.00 10/28/2016 Black Forest Capital, LLC 0.013 311,285 4,000.00 10/28/2016 Adar Bays LLC 0.012 342,412 4,150.00 10/28/2016 Microcap Equity Group LLC 0.012 373,913 4,300.00 10/31/2016 Kodiak Capital Group LLC 0.000 171,000 1,453.50 10/31/2016 EMA Financial LLC 0.005 429,213 1,974.38 10/31/2016 Auctus Fund LLC 0.009 374,500 3,445.40 10/31/2016 Adar Bays LLC 0.011 373,913 4,050.00 10/31/2016 Microcap Equity Group LLC 0.012 414,956 4,772.00 10/31/2016 Kodiak Capital Group LLC 0.000 824,694 309.26 11/1/2016 Adar Bays LLC 0.011 469,565 5,150.00 11/2/2016 Black Forest Capital, LLC 0.011 370,000 3,977.50 11/2/2016 EMA Financial LLC 0.004 530,500 2,153.83 11/2/2016 Microcap Equity Group LLC 0.010 512,315 5,200.00 11/2/2016 Adar Bays LLC 0.010 465,116 4,750.00 11/3/2016 Auctus Fund LLC 0.008 374,500 3,040.94 11/3/2016 Adar Bays LLC 0.005 462,264 2,200.00 11/3/2016 Microcap Equity Group LLC 0.000 497,767 (1) 11/4/2016 Tangiers Investment Group, LLC 0.005 1,381,761 6,591.00 11/4/2016 Adar Bays LLC 0.003 664,528 1,750.00 11/4/2016 Black Forest Capital, LLC 0.003 690,000 2,090.33 $1,566.77 11/7/2016 Adar Bays LLC 0.005 513,585 2,472.00 - 11/8/2016 Auctus Fund LLC 0.005 867,000 3,960.91 61.97 11/8/2016 EMA Financial LLC 0.002 895,500 1,898.46 - 11/8/2106 Black Forest Capital, LLC 0.005 301,436 1,593.77 3.84 16,789,813 $122,886.86 $1,632.58 _______________ (1) Additional shares issued for adjustment to prior conversion price. |
Note 14 - Income Tax (Tables)
Note 14 - Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | Net deferred tax assets consist of the following components as of December 31: 2015 2014 Deferred Tax Assets: NOL Carryover $1,493,600 $188,900 Related-party accrual - 500 Depreciation 300 1,500 Payroll accrual 6,000 - Deferred tax liabilities: Less valuation allowance (1,499,900) (190,900) Net deferred tax assets $- $- |
Schedule of Effective Income Tax Rate Reconciliation | The income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income from continuing operations for the period ended December 31, due to the following: 2015 2014 Book Income (loss) $(1,504,600) $(583,800) Meals and entertainment 1,600 1,000 Depreciation (300) (1,500) Other nondeductible expenses 77,900 394,900 Payroll accrual 6,000 Related party accruals (500) 500 Valuation allowance 1,419,900 188,900 ~ ~ |
Note 1 - Organization and Des32
Note 1 - Organization and Description of Business (Details) - shares | Oct. 17, 2016 | Nov. 10, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | Nov. 11, 2015 | Dec. 31, 2014 | Nov. 12, 2014 |
Entity Incorporation, Date of Incorporation | Aug. 25, 1999 | Aug. 25, 1999 | |||||
Authorized Capital Stock | 80,000,000 | ||||||
Common Stock, shares authorized | 75,000,000 | 2,000,000,000 | 2,000,000,000 | 75,000,000 | |||
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | |||
Capital Units, Authorized | 2,005,000,000 | 80,000,000 | |||||
Reverse Stock Splits Ratio | 0.05 | ||||||
Mile High Brands | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 49.00% | |||||
Gross Revenue Share | 10.00% | ||||||
Shares purchased | 10,000,000 | 10,000,000 | |||||
Common Stock | |||||||
Common Stock, shares authorized | 2,000,000,000 | ||||||
Common Stock | Mile High Brands | |||||||
Shares Issued | 500,000 | 500,000 | |||||
Preferred Stock | |||||||
Preferred Stock, shares authorized | 5,000,000 |
Note 3 - Going Concern (Details
Note 3 - Going Concern (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||||||
Net loss | $ (1,666,604) | $ (450,592) | $ (3,516,144) | $ (864,265) | $ (3,857,856) | $ (1,726,337) |
Net cash used in operating activities | (307,860) | $ (706,339) | (750,750) | (677,385) | ||
Accumulated deficit | $ (9,132,830) | $ (9,132,830) | $ (5,616,686) | $ (1,758,830) |
Note 4 - Property and Equipme34
Note 4 - Property and Equipment: Schedule of Property and Equipment (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Details | |||
Furniture, fixtures, and equipment | $ 0 | $ 8,403 | |
Software | 221,000 | 0 | |
Less: accumulated depreciation | (12,412) | (3,225) | $ (416) |
Fixed assets, net | $ 208,588 | 5,178 | 7,987 |
Furniture, fixtures, and equipment | $ 8,403 | $ 8,403 |
Note 4 - Property and Equipme35
Note 4 - Property and Equipment (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Office furniture disposed amount | $ 8,403 | |||
Depreciation Expense | 13,824 | $ 2,103 | $ 2,810 | $ 416 |
Furniture and Fixtures | ||||
Loss on Disposition of Property Plant Equipment | $ 3,766 |
Note 5 - Software License (Deta
Note 5 - Software License (Details) - Loyl.Me - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 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 | 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. |
Common Stock | ||
Payments for Software | $ 255,000 | $ 255,000 |
Note 6 - Available For Sale S37
Note 6 - Available For Sale Securities (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Sep. 30, 2016 | |
Available for sale securities | $ 32,500 | $ 32,500 |
Duby, LLC | ||
Business Acquisition, Percentage of Voting Interests Acquired | 1.08% | 1.08% |
Available for sale securities | $ 32,500 | $ 32,500 |
Acquisition Date | Dec. 10, 2015 |
Note 7 - Investment in Mile H38
Note 7 - Investment in Mile High Brands (Details) - USD ($) | Nov. 10, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2016 | Nov. 11, 2015 |
Loss on investment | $ (599,475) | $ (1,846,515) | |||
Mile High Brands | |||||
Shares purchased | 10,000,000 | 10,000,000 | |||
Stock price | $ 5.80 | $ 5.80 | |||
Value of Original Investment | $ 2,900,000 | $ 2,900,000 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 49.00% | |||
Investment at fair value | 450,000 | $ 1,049,475 | $ 450,000 | ||
Loss on investment | $ 599,475 | $ 1,846,515 | $ 2,445,990 | ||
Mile High Brands | Common Stock | |||||
Shares Issued | 500,000 | 500,000 |
Note 7 - Investment in Mile H39
Note 7 - Investment in Mile High Brands: Schedule of Financial Statements of MHB (Details) - USD ($) | 2 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Sales revenue | $ 499 | $ 48,156 | $ 59,150 | $ 76,404 | $ 119,325 | $ 6,538 | |
Cost of goods sold | 6,800 | 24,260 | 10,018 | 47,823 | 12,006 | ||
Gross Margin | 499 | 41,356 | 34,890 | 66,386 | 71,502 | (5,468) | |
Operating Expenses: | |||||||
General and administrative | 68,240 | 96,394 | 198,261 | 200,585 | 231,033 | 303,670 | |
Total Operating Expenses | 331,743 | 490,538 | 1,294,359 | 928,563 | 1,834,273 | 1,720,869 | |
Loss from Operations | (331,244) | (449,182) | (1,259,469) | (862,177) | (1,762,771) | (1,726,337) | |
Other Expense: | |||||||
Interest expense | 12,749 | 1,410 | 29,204 | 2,088 | 6,344 | ||
Total other expense | 1,335,360 | 1,410 | 2,256,675 | 2,088 | 2,095,085 | ||
Net loss | (1,666,604) | (450,592) | (3,516,144) | (864,265) | (3,857,856) | $ (1,726,337) | |
Interest expense | (12,749) | (1,410) | (29,204) | (2,088) | (6,344) | ||
Total other expense | $ (1,335,360) | $ (1,410) | (2,256,675) | $ (2,088) | $ (2,095,085) | ||
Mile High Brands | |||||||
Sales revenue | 41,629 | ||||||
Cost of goods sold | 15,897 | ||||||
Gross Margin | 25,372 | ||||||
Operating Expenses: | |||||||
General and administrative | 9,466 | ||||||
Total Operating Expenses | 9,466 | ||||||
Loss from Operations | 15,906 | ||||||
Other Expense: | |||||||
Interest expense | 0 | ||||||
Total other expense | 0 | ||||||
Net loss | 15,906 | ||||||
Net income attributed to Cannasys, Inc. | 7,794 | ||||||
Interest expense | 0 | ||||||
Total other expense | $ 0 | ||||||
MhbMember | |||||||
Cost of goods sold | $ 60 | ||||||
Gross Margin | 7,653 | ||||||
Operating Expenses: | |||||||
General and administrative | 14,985 | ||||||
Total Operating Expenses | 14,985 | ||||||
Loss from Operations | (7,332) | ||||||
Other Expense: | |||||||
Interest expense | 851 | ||||||
Total other expense | 851 | ||||||
Net loss | (8,183) | ||||||
Net income attributed to Cannasys, Inc. | (4,010) | ||||||
Revenues | 7,713 | ||||||
Interest expense | (851) | ||||||
Total other expense | $ (851) |
Note 8 - Commitments and Cont40
Note 8 - Commitments and Contingencies (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Lease deposit paid | $ 1,500 | |
Operating Leases, Rent Expense, Minimum Rentals | $ 1,500 | |
Office Space | ||
Periodic Payment Amount | $ 1,500 | |
Lease deposit paid | $ 1,500 |
Note 9 - Notes Payable (Details
Note 9 - Notes Payable (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2016 | Dec. 31, 2015 | Apr. 28, 2016 | Apr. 27, 2016 | Mar. 24, 2016 | Feb. 16, 2016 | Dec. 31, 2014 | |
Debt Instrument, Face Amount | $ 275,050 | ||||||
Stated Interest Rate | 0.00% | ||||||
Interest Payable, Current | $ 24,661 | $ 6,210 | |||||
Principal Balance Outstanding | 275,050 | ||||||
Proceeds from notes payable | 387,000 | ||||||
Convertible notes payable, discount | 42,797 | $ 122,084 | $ 0 | ||||
Mile High Brands | |||||||
Debt Instrument, Face Amount | $ 7,500 | ||||||
Stated Interest Rate | 10.00% | ||||||
Interest Payable, Current | 464 | ||||||
Former Employee | |||||||
Debt Instrument, Face Amount | $ 33,717 | ||||||
Principal Balance Outstanding | 20,217 | ||||||
Jeff Holmes | |||||||
Debt Instrument, Face Amount | $ 27,000 | ||||||
Stated Interest Rate | 1.00% | ||||||
Interest Payable, Current | 115 | ||||||
Proceeds from notes payable | $ 25,000 | ||||||
Convertible notes payable, discount | $ 2,000 | ||||||
Maturity Date | Oct. 26, 2016 | ||||||
Class of Warrant, Outstanding | 5,000 | 5,000 |
Note 10 - Notes Payable in De42
Note 10 - Notes Payable in Default (Details) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | Jan. 13, 2016 | |
Stated Interest Rate | 0.00% | ||
Debt Instrument, Face Amount | $ 275,050 | ||
Notes payable | $ 179,717 | $ 200,000 | |
Blackbridge Capital LLC | |||
Stated Interest Rate | 1.00% | ||
Maturity Date | Oct. 27, 2016 | ||
Kodiak Capital | |||
Stated Interest Rate | 12.00% | ||
Maturity Date | Dec. 1, 2016 | ||
Debt Instrument, Face Amount | $ 50,000 | ||
B44 | |||
Stated Interest Rate | 1.00% | ||
Maturity Date | Jun. 30, 2016 | ||
Debt Instrument, Face Amount | $ 75,000 | ||
Class of Warrant, Outstanding | 11,250 | ||
Note Purchase and Assignment Agreement | Blackbridge Capital LLC | |||
Debt Conversion, Converted Instrument, Amount | $ 50,000 | ||
Note Purchase and Assignment Agreement | Kodiak Capital | |||
Debt Conversion, Converted Instrument, Amount | 50,000 | ||
Note Purchase and Assignment Agreement | Black Forest Capital LLC | |||
Debt Conversion, Converted Instrument, Amount | 50,000 | ||
Note Purchase and Assignment Agreement | B44 | |||
Debt Default, Short-term Debt, Amount | 50,000 | ||
Notes Payable in Default | |||
Debt Default, Short-term Debt, Amount | $ 200,000 | ||
Stated Interest Rate | 1.00% | 1.00% | |
Maturity Date | Mar. 1, 2016 | Mar. 1, 2016 | |
Notes payable | $ 200,000 |
Note 11 - Convertible Notes P43
Note 11 - Convertible Notes Payable: Schedule of Short Term Debt and Maturities (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | Aug. 18, 2016 | Dec. 31, 2014 | |
Stated Interest Rate | 0.00% | |||
Principal Balance Outstanding | $ 275,050 | |||
Convertible Notes Payable Gross | $ 498,891 | 275,050 | ||
Less debt discount | (42,797) | (122,084) | $ 0 | |
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | $ 456,094 | 152,966 | ||
Principal Balance Outstanding | $ 275,050 | |||
EMA Financial, LLC | ||||
Issue Date | Oct. 14, 2015 | |||
Maturity Date | Oct. 14, 2016 | |||
Stated Interest Rate | 10.00% | |||
Principal Balance Outstanding | $ 30,800 | |||
Less debt discount | 0 | |||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 30,800 | |||
Principal Balance Outstanding | $ 30,800 | |||
EMA Financial, LLC | 10/14/2015 Note | ||||
Issue Date | Oct. 14, 2015 | Oct. 14, 2015 | ||
Maturity Date | Oct. 14, 2016 | Oct. 14, 2016 | ||
Stated Interest Rate | 12.00% | 10.00% | ||
Principal Balance Outstanding | $ 13,736 | $ 30,800 | ||
Amount Converted | 19,564 | |||
Principal Balance Outstanding | $ 13,736 | $ 30,800 | ||
EMA Financial, LLC | 5/5/2016 Note | ||||
Issue Date | May 5, 2016 | |||
Maturity Date | May 5, 2017 | |||
Stated Interest Rate | 12.00% | |||
Principal Balance Outstanding | $ 53,500 | |||
Principal Balance Outstanding | $ 53,500 | |||
Tangiers Investment Group, LLC | ||||
Issue Date | Nov. 18, 2015 | Nov. 18, 2015 | ||
Maturity Date | Nov. 19, 2016 | Nov. 19, 2016 | ||
Stated Interest Rate | 10.00% | 10.00% | ||
Principal Balance Outstanding | $ 35,941 | $ 60,000 | ||
Less debt discount | 45,000 | |||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 15,000 | |||
Amount Converted | 24,059 | |||
Principal Balance Outstanding | $ 35,941 | $ 60,000 | ||
Kodiak Capital | ||||
Issue Date | Nov. 30, 2015 | |||
Maturity Date | Dec. 1, 2016 | |||
Stated Interest Rate | 12.00% | |||
Principal Balance Outstanding | $ 50,000 | |||
Less debt discount | 0 | |||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 50,000 | |||
Principal Balance Outstanding | $ 50,000 | |||
Kodiak Capital | Equity Purchase Agreement | ||||
Issue Date | Dec. 15, 2015 | |||
Maturity Date | Jul. 15, 2016 | |||
Stated Interest Rate | 8.00% | |||
Principal Balance Outstanding | $ 50,000 | |||
Less debt discount | 45,000 | |||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 5,000 | |||
Principal Balance Outstanding | $ 50,000 | |||
Kodiak Capital | 11/30/2015 Note | ||||
Issue Date | Nov. 30, 2015 | Nov. 30, 2015 | ||
Maturity Date | Dec. 1, 2016 | Dec. 1, 2016 | ||
Stated Interest Rate | 12.00% | 12.00% | ||
Principal Balance Outstanding | $ 46,283 | $ 50,000 | ||
Amount Converted | 3,717 | |||
Principal Balance Outstanding | $ 46,283 | $ 50,000 | ||
Kodiak Capital | 12/15/2015 Note | ||||
Issue Date | Dec. 15, 2015 | Dec. 15, 2015 | ||
Maturity Date | Jul. 15, 2016 | Jul. 15, 2016 | ||
Stated Interest Rate | 0.00% | 0.00% | ||
Principal Balance Outstanding | $ 50,000 | $ 50,000 | ||
Principal Balance Outstanding | $ 50,000 | $ 50,000 | ||
Kodiak Capital | 3/18/2016 Note | ||||
Issue Date | Mar. 18, 2016 | |||
Maturity Date | Mar. 18, 2017 | |||
Stated Interest Rate | 12.00% | |||
Principal Balance Outstanding | $ 25,000 | $ 25,000 | ||
Principal Balance Outstanding | $ 25,000 | $ 25,000 | ||
Kodiak Capital | 5/23/2016 Note | ||||
Issue Date | May 23, 2016 | |||
Maturity Date | Aug. 30, 2016 | |||
Stated Interest Rate | 1.00% | |||
Principal Balance Outstanding | $ 50,000 | |||
Principal Balance Outstanding | $ 50,000 | |||
Kodiak Capital | 8/18/2016 Note | ||||
Issue Date | Aug. 18, 2016 | |||
Maturity Date | Aug. 18, 2017 | |||
Stated Interest Rate | 12.00% | |||
Principal Balance Outstanding | $ 25,000 | |||
Principal Balance Outstanding | 25,000 | |||
Auctus Fund, LLC | ||||
Issue Date | Dec. 3, 2015 | |||
Maturity Date | Sep. 3, 2016 | |||
Stated Interest Rate | 10.00% | |||
Principal Balance Outstanding | $ 49,250 | |||
Less debt discount | 0 | |||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 49,250 | |||
Amount Converted | $ 13,604 | |||
Principal Balance Outstanding | $ 49,250 | |||
Auctus Fund, LLC | 12/3/2015 Note | ||||
Issue Date | Dec. 3, 2015 | Dec. 3, 2015 | ||
Maturity Date | Sep. 3, 2016 | Sep. 3, 2016 | ||
Stated Interest Rate | 10.00% | 10.00% | ||
Principal Balance Outstanding | $ 35,646 | $ 49,250 | ||
Principal Balance Outstanding | $ 35,646 | $ 49,250 | ||
Auctus Fund, LLC | 7/20/2016 Note | ||||
Issue Date | Jul. 20, 2016 | |||
Maturity Date | Apr. 20, 2017 | |||
Stated Interest Rate | 10.00% | |||
Principal Balance Outstanding | $ 45,750 | |||
Principal Balance Outstanding | 45,750 | |||
Adar Bays, LLC | ||||
Issue Date | Dec. 10, 2015 | |||
Maturity Date | Dec. 10, 2016 | |||
Stated Interest Rate | 8.00% | |||
Principal Balance Outstanding | $ 35,000 | |||
Less debt discount | 32,084 | |||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 2,916 | |||
Amount Converted | $ 7,790 | |||
Principal Balance Outstanding | $ 35,000 | |||
Adar Bays, LLC | 12/16/2015 Note | ||||
Issue Date | Dec. 16, 2015 | |||
Maturity Date | Dec. 16, 2016 | |||
Stated Interest Rate | 8.00% | |||
Principal Balance Outstanding | $ 27,510 | |||
Principal Balance Outstanding | $ 27,510 | |||
Adar Bays, LLC | 7/12/2016 Note | ||||
Issue Date | Jul. 12, 2016 | |||
Maturity Date | Apr. 12, 2017 | |||
Stated Interest Rate | 8.00% | |||
Principal Balance Outstanding | $ 35,000 | |||
Principal Balance Outstanding | $ 35,000 | |||
Colonial Stock Transfer | ||||
Issue Date | Jan. 14, 2016 | |||
Maturity Date | Jan. 14, 2017 | |||
Stated Interest Rate | 10.00% | |||
Principal Balance Outstanding | $ 6,605 | |||
Principal Balance Outstanding | $ 6,605 | |||
Blackbridge Capital LLC | ||||
Issue Date | Apr. 27, 2016 | |||
Maturity Date | Oct. 27, 2016 | |||
Stated Interest Rate | 1.00% | |||
Principal Balance Outstanding | $ 4,500 | |||
Amount Converted | 45,500 | |||
Principal Balance Outstanding | $ 4,500 | |||
Black Forest Capital LLC | 5/31/2016 Note 1 | ||||
Issue Date | May 31, 2016 | |||
Maturity Date | May 31, 2017 | |||
Stated Interest Rate | 8.00% | |||
Principal Balance Outstanding | $ 30,000 | |||
Principal Balance Outstanding | $ 30,000 | |||
Black Forest Capital LLC | 5/31/2016 Note 2 | ||||
Issue Date | May 31, 2016 | |||
Maturity Date | May 31, 2017 | |||
Stated Interest Rate | 2.00% | |||
Principal Balance Outstanding | $ 14,420 | |||
Amount Converted | 35,580 | |||
Principal Balance Outstanding | $ 14,420 |
Note 11 - Convertible Notes P44
Note 11 - Convertible Notes Payable (Details) - USD ($) | Dec. 15, 2015 | Dec. 10, 2015 | Dec. 06, 2015 | Dec. 03, 2015 | Nov. 30, 2015 | Nov. 18, 2015 | Oct. 15, 2015 | Sep. 30, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 16, 2015 | Oct. 14, 2015 | Dec. 31, 2014 |
Interest Payable, Current | $ 24,661 | $ 24,661 | $ 6,210 | ||||||||||
Amortization of debt discount | 86,291 | 502,140 | 85,250 | ||||||||||
Loss on issuance of convertible debt | (418,079) | (907,090) | $ (152,966) | ||||||||||
Stated Interest Rate | 0.00% | ||||||||||||
Debt Instrument, Face Amount | $ 275,050 | ||||||||||||
Convertible notes payable, discount | $ 42,797 | $ 42,797 | 122,084 | $ 0 | |||||||||
Principal Balance Outstanding | $ 275,050 | ||||||||||||
EMA Financial, LLC | |||||||||||||
Stated Interest Rate | 10.00% | ||||||||||||
Debt Instrument, Face Amount | $ 30,800 | ||||||||||||
Issue Date | Oct. 14, 2015 | ||||||||||||
Convertible notes payable, discount | $ 0 | ||||||||||||
Maturity Date | Oct. 14, 2016 | ||||||||||||
Principal Balance Outstanding | $ 30,800 | ||||||||||||
Tangiers Investment Group, LLC | |||||||||||||
Stated Interest Rate | 10.00% | 10.00% | 10.00% | ||||||||||
Debt Instrument, Face Amount | $ 60,000 | ||||||||||||
Issue Date | Nov. 18, 2015 | Nov. 18, 2015 | |||||||||||
Convertible notes payable, discount | $ (45,000) | ||||||||||||
Maturity Date | Nov. 19, 2016 | Nov. 19, 2016 | |||||||||||
Principal Balance Outstanding | $ 35,941 | $ 35,941 | $ 60,000 | ||||||||||
Kodiak Capital | |||||||||||||
Stated Interest Rate | 12.00% | ||||||||||||
Debt Instrument, Face Amount | $ 50,000 | ||||||||||||
Issue Date | Nov. 30, 2015 | ||||||||||||
Convertible notes payable, discount | $ 0 | ||||||||||||
Maturity Date | Dec. 1, 2016 | ||||||||||||
Principal Balance Outstanding | $ 50,000 | ||||||||||||
Kodiak Capital | Equity Purchase Agreement | |||||||||||||
Stated Interest Rate | 8.00% | ||||||||||||
Debt Instrument, Face Amount | $ 50,000 | ||||||||||||
Issue Date | Dec. 15, 2015 | ||||||||||||
Convertible notes payable, discount | $ (45,000) | ||||||||||||
Maturity Date | Jul. 15, 2016 | ||||||||||||
Principal Balance Outstanding | $ 50,000 | ||||||||||||
Kodiak Capital | Equity Purchase Agreement | Common Stock | |||||||||||||
Equity Committment Amount | $ 1,000,000 | ||||||||||||
Auctus Fund, LLC | |||||||||||||
Stated Interest Rate | 10.00% | ||||||||||||
Debt Instrument, Face Amount | $ 49,250 | ||||||||||||
Issue Date | Dec. 3, 2015 | ||||||||||||
Convertible notes payable, discount | $ 0 | ||||||||||||
Maturity Date | Sep. 3, 2016 | ||||||||||||
Principal Balance Outstanding | $ 49,250 | ||||||||||||
Adar Bays, LLC | |||||||||||||
Stated Interest Rate | 8.00% | ||||||||||||
Debt Instrument, Face Amount | $ 35,000 | ||||||||||||
Issue Date | Dec. 10, 2015 | ||||||||||||
Convertible notes payable, discount | $ (32,084) | ||||||||||||
Maturity Date | Dec. 10, 2016 | ||||||||||||
Principal Balance Outstanding | $ 35,000 | ||||||||||||
Convertible Notes Payable | EMA Financial, LLC | |||||||||||||
Interest Payable, Current | $ 685 | ||||||||||||
Stated Interest Rate | 12.00% | 10.00% | |||||||||||
Debt Instrument, Face Amount | $ 30,800 | $ 240,000 | $ 28,000 | ||||||||||
Issue Date | Oct. 19, 2015 | ||||||||||||
Convertible notes payable, discount | $ 3,000 | ||||||||||||
Maturity Date | Oct. 14, 2016 | ||||||||||||
Conversion feature | convertible into restricted shares of our common stock at any time during the term of the note at EMA's sole discretion at the conversion price of the lower of: (i) the closing sale price of the common stock on the trading day on immediately preceding the Closing Date; and (ii) 50% of the lowest sale price for the common stock during the 25 consecutive trading days immediately preceding the conversion date. | ||||||||||||
Principal Balance Outstanding | $ 30,800 | ||||||||||||
Convertible Notes Payable | Tangiers Investment Group, LLC | |||||||||||||
Interest Payable, Current | $ 723 | ||||||||||||
Stated Interest Rate | 10.00% | ||||||||||||
Convertible notes payable, discount | $ 10,000 | ||||||||||||
Maturity Date | Nov. 19, 2016 | ||||||||||||
Conversion feature | convertible into restricted shares of common stock after May 19, 2016, at Tangiers's sole discretion at the conversion price of 55% of the lowest sale price for the common stock during the 25 consecutive trading days immediately preceding the conversion date. | ||||||||||||
Principal Balance Outstanding | $ 60,000 | ||||||||||||
Proceeds from Issuance of Debt | $ 60,000 | ||||||||||||
Convertible Notes Payable | Kodiak Capital | |||||||||||||
Interest Payable, Current | $ 526 | ||||||||||||
Stated Interest Rate | 12.00% | ||||||||||||
Debt Instrument, Face Amount | $ 50,000 | ||||||||||||
Convertible notes payable, discount | 15,000 | ||||||||||||
Maturity Date | Dec. 1, 2016 | ||||||||||||
Conversion feature | convertible into restricted shares of our common stock, at Kodiak's sole discretion, at the lower of the closing bid price on the principal market on the trading day preceding the note date or 50% of the lowest closing bid price for the common stock during the 30 consecutive trading days immediately preceding the conversion date, with some exceptions. | ||||||||||||
Principal Balance Outstanding | $ 50,000 | ||||||||||||
Proceeds from Issuance of Debt | $ 35,000 | ||||||||||||
Convertible Notes Payable | Kodiak Capital | Equity Purchase Agreement | |||||||||||||
Debt Instrument, Face Amount | $ 50,000 | ||||||||||||
Maturity Date | Jul. 15, 2016 | ||||||||||||
Principal Balance Outstanding | 50,000 | ||||||||||||
Convertible Notes Payable | Auctus Fund, LLC | |||||||||||||
Interest Payable, Current | $ 391 | ||||||||||||
Stated Interest Rate | 10.00% | ||||||||||||
Debt Instrument, Face Amount | $ 49,250 | ||||||||||||
Convertible notes payable, discount | 5,250 | ||||||||||||
Maturity Date | Sep. 3, 2016 | ||||||||||||
Conversion feature | convertible into restricted shares of our common stock after December 3, 2015, at Auctus's sole discretion, at the conversion price of 55% of the lowest sale price for the common stock during the 25 consecutive trading days immediately preceding the conversion date. | ||||||||||||
Principal Balance Outstanding | $ 49,250 | ||||||||||||
Proceeds from Issuance of Debt | $ 44,000 | ||||||||||||
Convertible Notes Payable | Adar Bays, LLC | |||||||||||||
Interest Payable, Current | $ 169 | ||||||||||||
Stated Interest Rate | 8.00% | ||||||||||||
Debt Instrument, Face Amount | $ 70,000 | ||||||||||||
Convertible notes payable, discount | $ 2,000 | ||||||||||||
Maturity Date | Dec. 10, 2016 | ||||||||||||
Conversion feature | convertible into restricted shares of common stock after June 10, 2016, at Adar's sole discretion, at the conversion price of 50% of the lowest sale price for the common stock during the 25 consecutive trading days immediately preceding the conversion date. | ||||||||||||
Principal Balance Outstanding | $ 35,000 | ||||||||||||
Proceeds from Issuance of Debt | $ 35,000 |
Note 12 - Stock Warrants (Detai
Note 12 - Stock Warrants (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Apr. 28, 2016 | Apr. 27, 2016 | Jan. 24, 2016 | Jan. 21, 2016 | Jan. 13, 2016 | Dec. 24, 2015 | Dec. 20, 2015 | |||
Minimum | |||||||||||||
Class of Warrant, Outstanding | 2,500 | ||||||||||||
Maximum | |||||||||||||
Class of Warrant, Outstanding | 15,000 | ||||||||||||
Chief Executive Officer | |||||||||||||
Class of Warrant, Outstanding | 150,000 | ||||||||||||
Risk free rate | 1.33% | 1.33% | |||||||||||
Director 1 | |||||||||||||
Class of Warrant, Outstanding | 25,000 | ||||||||||||
Director 2 | |||||||||||||
Class of Warrant, Outstanding | 12,500 | ||||||||||||
Director 2 | 10K | |||||||||||||
Class of Warrant, Outstanding | 7,500 | ||||||||||||
Director 3 | |||||||||||||
Class of Warrant, Outstanding | 7,500 | ||||||||||||
Consultant 1 | |||||||||||||
Class of Warrant, Outstanding | 12,500 | ||||||||||||
Warrant | |||||||||||||
Cancelled | 5,625 | 5,625 | |||||||||||
Exercise Price Range, Lower Range Limit | $ 1 | ||||||||||||
Exercise Price Range, Upper Range Limit | $ 8 | ||||||||||||
Weighted Average Remaining Contractual Life | 2 years 7 months 6 days | ||||||||||||
Warrant | Chief Executive Officer | |||||||||||||
Warrants vested | 87,500 | 25,000 | 87,500 | ||||||||||
Fair value vested | $ 612,500 | $ 175,000 | $ 612,500 | ||||||||||
Fair Value Assumptions, Method Used | Black-Scholes-Merton pricing model | Black-Scholes-Merton pricing model | |||||||||||
Exercise price | $ 1 | $ 1 | $ 1 | ||||||||||
Stock price | $ 7 | $ 7 | $ 7 | ||||||||||
Volatility rate | 842.00% | 842.00% | |||||||||||
Expected life | 3 years | ||||||||||||
Warrants issued | 87,500 | 25,000 | 87,500 | ||||||||||
Warrant | Director 1 | |||||||||||||
Fair value vested | $ 175,000 | $ 175,000 | |||||||||||
Fair Value Assumptions, Method Used | Black-Scholes-Merton pricing model | Black-Scholes-Merton pricing model | |||||||||||
Exercise price | $ 1 | $ 1 | $ 1 | ||||||||||
Stock price | 7 | $ 7 | $ 7 | ||||||||||
Risk free rate | 1.33% | 1.33% | |||||||||||
Volatility rate | 842.00% | 842.00% | |||||||||||
Expected life | 3 years | 3 years | |||||||||||
Warrant | Director 2 | |||||||||||||
Warrants vested | 1,875 | ||||||||||||
Fair value vested | $ 87,500 | $ 13,125 | |||||||||||
Fair Value Assumptions, Method Used | Black-Scholes-Merton pricing model | Black-Scholes-Merton pricing model | |||||||||||
Exercise price | 1 | $ 1 | $ 1 | ||||||||||
Stock price | $ 7 | $ 7 | $ 7 | ||||||||||
Risk free rate | 1.33% | 1.33% | |||||||||||
Volatility rate | 842.00% | 842.00% | |||||||||||
Expected life | 3 years | 3 years | |||||||||||
Warrants issued | 1,875 | ||||||||||||
Warrant | Director 3 | |||||||||||||
Warrants vested | 1,875 | ||||||||||||
Fair value vested | $ 13,125 | ||||||||||||
Fair Value Assumptions, Method Used | Black-Scholes-Merton pricing model | ||||||||||||
Exercise price | $ 1 | ||||||||||||
Stock price | $ 7 | ||||||||||||
Risk free rate | 1.33% | ||||||||||||
Volatility rate | 842.00% | ||||||||||||
Expected life | 3 years | ||||||||||||
Cancelled | 5,625 | ||||||||||||
Warrants issued | 1,875 | ||||||||||||
Warrant | Consultant 1 | |||||||||||||
Fair value vested | $ 87,500 | ||||||||||||
Fair Value Assumptions, Method Used | Black-Scholes-Merton pricing model | ||||||||||||
Exercise price | $ 1 | $ 1 | |||||||||||
Stock price | $ 7 | $ 7 | |||||||||||
Risk free rate | 1.33% | ||||||||||||
Volatility rate | 842.00% | ||||||||||||
Expected life | 3 years | ||||||||||||
Common Stock | |||||||||||||
Issuance of common stock, Shares | 500,000 | [1] | 184,284 | [2] | |||||||||
National Concessions Group, Inc | |||||||||||||
Class of Warrant, Outstanding | 2,500 | ||||||||||||
National Concessions Group, Inc | Warrant | |||||||||||||
Warrants vested | 2,500 | ||||||||||||
Fair value vested | $ 16,000 | ||||||||||||
Fair Value Assumptions, Method Used | Black-Scholes-Merton pricing model | Black-Scholes-Merton pricing model | |||||||||||
Exercise price | $ 1 | $ 1 | $ 1 | ||||||||||
Stock price | $ 6.40 | $ 6.40 | $ 6.40 | ||||||||||
Risk free rate | 0.80% | 0.80% | |||||||||||
Volatility rate | 848.10% | 848.10% | |||||||||||
Expected life | 1 year 4 months 24 days | 1 year 4 months 24 days | |||||||||||
Warrants issued | 2,500 | ||||||||||||
B44 | |||||||||||||
Class of Warrant, Outstanding | 11,250 | ||||||||||||
B44 | Warrant | |||||||||||||
Fair value vested | $ 69,750 | ||||||||||||
Fair Value Assumptions, Method Used | Black-Scholes-Merton pricing model | ||||||||||||
Exercise price | $ 1 | ||||||||||||
Stock price | $ 6.20 | ||||||||||||
Risk free rate | 1.15% | ||||||||||||
Volatility rate | 600.00% | ||||||||||||
Expected life | 3 years | ||||||||||||
B44 | Common Stock | |||||||||||||
Issuance of common stock, Shares | 8,804 | 102,000 | |||||||||||
KiwiTech, LLC | |||||||||||||
Class of Warrant, Outstanding | 15,625 | ||||||||||||
KiwiTech, LLC | Warrant | |||||||||||||
Fair value vested | $ 71,875 | ||||||||||||
Fair Value Assumptions, Method Used | Black-Scholes-Merton pricing model | ||||||||||||
Exercise price | $ 8 | ||||||||||||
Stock price | $ 4.60 | ||||||||||||
Risk free rate | 2.02% | ||||||||||||
Volatility rate | 600.00% | ||||||||||||
Expected life | 10 years | ||||||||||||
Consigliere Inc | |||||||||||||
Class of Warrant, Outstanding | 5,000 | ||||||||||||
Consigliere Inc | Warrant | |||||||||||||
Fair value vested | $ 28,967 | ||||||||||||
Fair Value Assumptions, Method Used | Black-Scholes-Merton pricing model | ||||||||||||
Exercise price | $ 4.60 | ||||||||||||
Stock price | $ 5.80 | ||||||||||||
Risk free rate | 0.47% | ||||||||||||
Volatility rate | 638.00% | ||||||||||||
Expected life | 1 year | ||||||||||||
Jeff Holmes | |||||||||||||
Class of Warrant, Outstanding | 5,000 | 5,000 | |||||||||||
Jeff Holmes | Warrant | |||||||||||||
Fair value vested | $ 27,000 | ||||||||||||
Fair Value Assumptions, Method Used | Black-Scholes-Merton pricing model | ||||||||||||
Exercise price | $ 1 | ||||||||||||
Stock price | $ 5.40 | ||||||||||||
Risk free rate | 0.91% | ||||||||||||
Volatility rate | 1177.00% | ||||||||||||
Expected life | 2 years 8 months 5 days | ||||||||||||
[1] | for investment | ||||||||||||
[2] | for cash |
Note 12 - Stock Warrants_ Sched
Note 12 - Stock Warrants: Schedule of Warrants, Activity (Details) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2016$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2014$ / sharesshares | |
Expired, Weighted Average Fair value | $ 0 | $ 0 | |
Warrant | |||
Warrants, Outstanding, Beginning Balance | shares | 210,000 | ||
Outstanding, Weighted Average Exercise Price, Starting Balance | $ 1 | $ 0 | |
Outstanding, Weighted Average Fair Value | $ 6.80 | $ 7 | |
Issued | shares | 36,875 | 210,000 | |
Issued, Weighted Average Exercise Price | $ 5.60 | $ 1 | |
Issued, Weighted Average Fair value | $ 5.40 | $ 7 | |
Exercised | shares | (11,250) | 0 | |
Exercised, Weighted Average Exercise Price | $ 0 | $ 0 | |
Exercised, Weighted Average Fair value | $ 0 | $ 0 | |
Cancelled | shares | (5,625) | (5,625) | |
Cancelled, Weighted Average Exercise Price | $ 0 | $ 0 | |
Cancelled, Weighted Average Fair value | $ 0 | $ 0 | |
Expired | shares | 0 | 0 | |
Expired, Weighted Average Exercise Price | $ 0 | $ 0 | |
Warrants, Outstanding, Ending Balance | shares | 230,000 | 210,000 | |
Outstanding, Weighted Average Exercise Price, Ending Balance | $ 1.60 | $ 1 | 0 |
Exercisable | 200,000 | ||
Exercisable, Weighted Average Exercise Price | $ 1.80 | 1 | |
Exercisable, Weighted Average Fair Value | $ 6.60 | 7 | |
Range of Exercise Price | $ 1 | ||
Number Outstanding | shares | 204,357 | ||
Weighted Average Remaining Contractual Life | 2 years 10 months 24 days | ||
Weighted Average Exercise Price | $ 1 | ||
Warrant | 10K | |||
Warrants, Outstanding, Beginning Balance | shares | 204,375 | 0 | |
Outstanding, Weighted Average Fair Value | $ 7 | $ 0 | |
Warrants, Outstanding, Ending Balance | shares | 204,375 | 0 |
Note 13 - Stockholders' Equit47
Note 13 - Stockholders' Equity (deficit) (Details) - USD ($) | Jan. 14, 2016 | Nov. 10, 2015 | Oct. 31, 2015 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Sep. 30, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | May 23, 2016 | Feb. 11, 2016 | Feb. 08, 2016 | Nov. 11, 2015 | Oct. 10, 2015 | Jul. 10, 2015 | Apr. 10, 2015 | Feb. 09, 2015 | ||
Stock-based compensation expense | $ 119,125 | $ 604,592 | $ 904,125 | $ 1,012,500 | ||||||||||||||||||
Issuance of common stock, Value | $ 2,900,000 | [1] | 1,087,400 | [2] | ||||||||||||||||||
Issuance of common stock for compensation, Value | $ 1,012,500 | |||||||||||||||||||||
Cannasys Colorado | ||||||||||||||||||||||
Percentage of Issued and Outstanding Shares Acqured in Connection with Merger | 100.00% | |||||||||||||||||||||
Issuance 1 | ||||||||||||||||||||||
Issuance of common stock, Value | $ 500,000 | |||||||||||||||||||||
Issuance 2 | ||||||||||||||||||||||
Issuance of common stock, Value | $ 387,400 | |||||||||||||||||||||
Accounting Services Rendered | ||||||||||||||||||||||
Stock price | $ 5 | |||||||||||||||||||||
Stock-based compensation expense | $ 6,250 | |||||||||||||||||||||
Stock issued for Accounting Services | 1,250 | |||||||||||||||||||||
Consulting Services Rendered | ||||||||||||||||||||||
Stock price | $ 5 | |||||||||||||||||||||
Stock-based compensation expense | $ 15,625 | |||||||||||||||||||||
Stock issued for Accounting Services | 3,125 | |||||||||||||||||||||
Common Stock | ||||||||||||||||||||||
Stock Issued During Period, Shares, License Agreement | 6,614 | |||||||||||||||||||||
Issuance of common stock, Shares | 500,000 | [1] | 184,284 | [2] | ||||||||||||||||||
Issuance of common stock, Value | $ 500 | [1] | $ 184 | [2] | ||||||||||||||||||
Issuance of common stock for compensation, Shares | 33,750 | |||||||||||||||||||||
Issuance of common stock for compensation, Value | $ 34 | |||||||||||||||||||||
Noncash or Part Noncash Acquisition, Noncash Financial or Equity Instrument Consideration, Shares Issued | 300,000 | |||||||||||||||||||||
Merger acquisition, Shares | 136,154 | |||||||||||||||||||||
Shares Eliminated in Consolidation | 80,096 | |||||||||||||||||||||
Common Stock | Issuance 1 | ||||||||||||||||||||||
Issuance of common stock, Shares | 50,000 | |||||||||||||||||||||
Common Stock | Issuance 2 | ||||||||||||||||||||||
Issuance of common stock, Shares | 32,284 | |||||||||||||||||||||
Loyl.Me | ||||||||||||||||||||||
Stock price | $ 6.44 | $ 20.80 | $ 29.36 | $ 40 | ||||||||||||||||||
Stock-based compensation expense | $ 25,000 | $ 25,000 | $ 8,250 | $ 50,000 | ||||||||||||||||||
Loyl.Me | Common Stock | ||||||||||||||||||||||
Stock Issued During Period, Shares, License Agreement | 3,882 | 1,202 | 281 | 1,250 | ||||||||||||||||||
Mile High Brands | ||||||||||||||||||||||
Stock price | $ 5.80 | $ 5.80 | ||||||||||||||||||||
Shares purchased | 10,000,000 | 10,000,000 | ||||||||||||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 49.00% | 49.00% | ||||||||||||||||||||
Value of Original Investment | $ 2,900,000 | $ 2,900,000 | ||||||||||||||||||||
Mile High Brands | Common Stock | ||||||||||||||||||||||
Shares Issued | 500,000 | 500,000 | ||||||||||||||||||||
Convurge, LLC | ||||||||||||||||||||||
Stock Issued During Period, Shares, License Agreement | 2,500 | |||||||||||||||||||||
Stock price | $ 5.60 | |||||||||||||||||||||
Stock-based compensation expense | $ 14,000 | |||||||||||||||||||||
Convurge, LLC | Common Stock | ||||||||||||||||||||||
Stock Issued During Period, Shares, License Agreement | 2,500 | |||||||||||||||||||||
Brett Harris | ||||||||||||||||||||||
Stock Issued During Period, Shares, License Agreement | 15,000 | |||||||||||||||||||||
Stock price | $ 4.40 | |||||||||||||||||||||
Stock-based compensation expense | $ 66,000 | |||||||||||||||||||||
Tangiers Investment Group, LLC | ||||||||||||||||||||||
Stock price | $ 1.20 | |||||||||||||||||||||
Stock-based compensation expense | $ 6,000 | |||||||||||||||||||||
Tangiers Investment Group, LLC | Common Stock | Delay of Debt Conversion | ||||||||||||||||||||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 5,000 | |||||||||||||||||||||
B44 | ||||||||||||||||||||||
Issuance of common stock, Value | $ 200,000 | |||||||||||||||||||||
B44 | Common Stock | ||||||||||||||||||||||
Issuance of common stock, Shares | 8,804 | 102,000 | ||||||||||||||||||||
[1] | for investment | |||||||||||||||||||||
[2] | for cash |
Note 13 - Stockholders' Equit48
Note 13 - Stockholders' Equity (deficit): Schedule of Debt Conversions (Details) | 9 Months Ended |
Sep. 30, 2016USD ($)$ / sharesshares | |
Principal | |
Amount Converted | $ 149,513.95 |
Interest | |
Amount Converted | $ 2,540 |
Common Stock | |
Shares Issued | shares | 2,333,072 |
Blackbridge Capital LLC | |
Amount Converted | $ 45,500 |
Auctus Fund, LLC | |
Amount Converted | 13,604 |
Tangiers Investment Group, LLC | |
Amount Converted | 24,059 |
Adar Bays, LLC | |
Amount Converted | $ 7,790 |
4/29/2016 | Blackbridge Capital LLC | |
Price | $ / shares | $ 1.38 |
4/29/2016 | Blackbridge Capital LLC | Principal | |
Amount Converted | $ 25,000 |
4/29/2016 | Blackbridge Capital LLC | Interest | |
Amount Converted | $ 0 |
4/29/2016 | Blackbridge Capital LLC | Common Stock | |
Shares Issued | shares | 16,667 |
5/19/2016 | Blackbridge Capital LLC | |
Price | $ / shares | $ 0.02 |
5/19/2016 | Blackbridge Capital LLC | Interest | |
Amount Converted | $ 0 |
5/19/2016 | Blackbridge Capital LLC | Common Stock | |
Shares Issued | shares | 6,061 |
5/19/2016 | EMA Financial, LLC | |
Price | $ / shares | $ 1.50 |
5/19/2016 | EMA Financial, LLC | Principal | |
Amount Converted | $ 5,250 |
5/19/2016 | EMA Financial, LLC | Interest | |
Amount Converted | $ 0 |
5/19/2016 | EMA Financial, LLC | Common Stock | |
Shares Issued | shares | 3,500 |
5/27/2016 | Blackbridge Capital LLC | |
Price | $ / shares | $ 0.02 |
5/27/2016 | Blackbridge Capital LLC | Interest | |
Amount Converted | $ 0 |
5/27/2016 | Blackbridge Capital LLC | Common Stock | |
Shares Issued | shares | 102,273 |
5/27/2016 | EMA Financial, LLC | |
Price | $ / shares | $ 0.12 |
5/27/2016 | EMA Financial, LLC | Principal | |
Amount Converted | $ 5,500 |
5/27/2016 | EMA Financial, LLC | Interest | |
Amount Converted | $ 0 |
5/27/2016 | EMA Financial, LLC | Common Stock | |
Shares Issued | shares | 50,000 |
6/3/2016 | Black Forest Capital LLC | |
Price | $ / shares | $ 0.20 |
6/3/2016 | Black Forest Capital LLC | Principal | |
Amount Converted | $ 10,000 |
6/3/2016 | Black Forest Capital LLC | Interest | |
Amount Converted | $ 0 |
6/3/2016 | Black Forest Capital LLC | Common Stock | |
Shares Issued | shares | 50,000 |
6/6/2016 | Auctus Fund, LLC | |
Price | $ / shares | $ 0.22 |
6/6/2016 | Auctus Fund, LLC | Principal | |
Amount Converted | $ 9,592.30 |
6/6/2016 | Auctus Fund, LLC | Interest | |
Amount Converted | $ 2,442 |
6/6/2016 | Auctus Fund, LLC | Common Stock | |
Shares Issued | shares | 54,703 |
6/8/2016 | Blackbridge Capital LLC | |
Price | $ / shares | $ 0.08 |
6/8/2016 | Blackbridge Capital LLC | Principal | |
Amount Converted | $ 10,000 |
6/8/2016 | Blackbridge Capital LLC | Interest | |
Amount Converted | $ 0 |
6/8/2016 | Blackbridge Capital LLC | Common Stock | |
Shares Issued | shares | 100,000 |
6/8/2016 | EMA Financial, LLC | |
Price | $ / shares | $ 0.06 |
6/8/2016 | EMA Financial, LLC | Principal | |
Amount Converted | $ 3,744.63 |
6/8/2016 | EMA Financial, LLC | Interest | |
Amount Converted | $ 0 |
6/8/2016 | EMA Financial, LLC | Common Stock | |
Shares Issued | shares | 63,630 |
6/9/2016 | EMA Financial, LLC | |
Price | $ / shares | $ 0.04 |
6/9/2016 | EMA Financial, LLC | Principal | |
Amount Converted | $ 2,861.69 |
6/9/2016 | EMA Financial, LLC | Interest | |
Amount Converted | $ 0 |
6/9/2016 | EMA Financial, LLC | Common Stock | |
Shares Issued | shares | 74,330 |
6/9/2016 | Tangiers Investment Group, LLC | |
Price | $ / shares | $ 0.08 |
6/9/2016 | Tangiers Investment Group, LLC | Principal | |
Amount Converted | $ 10,400 |
6/9/2016 | Tangiers Investment Group, LLC | Interest | |
Amount Converted | $ 0 |
6/9/2016 | Tangiers Investment Group, LLC | Common Stock | |
Shares Issued | shares | 135,065 |
6/10/2016 | Blackbridge Capital LLC | |
Price | $ / shares | $ 0.06 |
6/10/2016 | Blackbridge Capital LLC | Principal | |
Amount Converted | $ 10,000 |
6/10/2016 | Blackbridge Capital LLC | Interest | |
Amount Converted | $ 0 |
6/10/2016 | Blackbridge Capital LLC | Common Stock | |
Shares Issued | shares | 142,857 |
6/10/2016 | Black Forest Capital LLC | |
Price | $ / shares | $ 0.06 |
6/10/2016 | Black Forest Capital LLC | Principal | |
Amount Converted | $ 5,000 |
6/10/2016 | Black Forest Capital LLC | Interest | |
Amount Converted | $ 0 |
6/10/2016 | Black Forest Capital LLC | Common Stock | |
Shares Issued | shares | 71,429 |
6/10/2016 | Auctus Fund, LLC | |
Price | $ / shares | $ 0.08 |
6/10/2016 | Auctus Fund, LLC | Principal | |
Amount Converted | $ 4,011.67 |
6/10/2016 | Auctus Fund, LLC | Interest | |
Amount Converted | $ 98 |
6/10/2016 | Auctus Fund, LLC | Common Stock | |
Shares Issued | shares | 53,370 |
6/13/2016 | EMA Financial, LLC | |
Price | $ / shares | $ 0.02 |
6/13/2016 | EMA Financial, LLC | Principal | |
Amount Converted | $ 2,207.27 |
6/13/2016 | EMA Financial, LLC | Interest | |
Amount Converted | $ 0 |
6/13/2016 | EMA Financial, LLC | Common Stock | |
Shares Issued | shares | 100,331 |
6/14/2016 | Blackbridge Capital LLC | |
Price | $ / shares | $ 0.02 |
6/14/2016 | Blackbridge Capital LLC | Interest | |
Amount Converted | $ 0 |
6/14/2016 | Blackbridge Capital LLC | Common Stock | |
Shares Issued | shares | 81,818 |
6/14/2016 | Tangiers Investment Group, LLC | |
Price | $ / shares | $ 0.06 |
6/14/2016 | Tangiers Investment Group, LLC | Principal | |
Amount Converted | $ 11,150 |
6/14/2016 | Tangiers Investment Group, LLC | Interest | |
Amount Converted | $ 0 |
6/14/2016 | Tangiers Investment Group, LLC | Common Stock | |
Shares Issued | shares | 184,298 |
6/15/2016 | Black Forest Capital LLC | |
Price | $ / shares | $ 0.06 |
6/15/2016 | Black Forest Capital LLC | Principal | |
Amount Converted | $ 5,000 |
6/15/2016 | Black Forest Capital LLC | Interest | |
Amount Converted | $ 0 |
6/15/2016 | Black Forest Capital LLC | Common Stock | |
Shares Issued | shares | 90,909 |
6/16/2016 | Tangiers Investment Group, LLC | |
Price | $ / shares | $ 0.04 |
6/16/2016 | Tangiers Investment Group, LLC | Principal | |
Amount Converted | $ 2,509 |
6/16/2016 | Tangiers Investment Group, LLC | Interest | |
Amount Converted | $ 0 |
6/16/2016 | Tangiers Investment Group, LLC | Common Stock | |
Shares Issued | shares | 55,632 |
6/17/2016 | Blackbridge Capital LLC | |
Price | $ / shares | $ 0.02 |
6/17/2016 | Blackbridge Capital LLC | Interest | |
Amount Converted | $ 0 |
6/17/2016 | Blackbridge Capital LLC | Common Stock | |
Shares Issued | shares | 101,045 |
6/17/2016 | Black Forest Capital LLC | |
Price | $ / shares | $ 0.04 |
6/17/2016 | Black Forest Capital LLC | Principal | |
Amount Converted | $ 5,022.50 |
6/17/2016 | Black Forest Capital LLC | Interest | |
Amount Converted | $ 0 |
6/17/2016 | Black Forest Capital LLC | Common Stock | |
Shares Issued | shares | 122,500 |
6/20/2016 | Blackbridge Capital LLC | |
Price | $ / shares | $ 0.02 |
6/20/2016 | Blackbridge Capital LLC | Interest | |
Amount Converted | $ 0 |
6/20/2016 | Blackbridge Capital LLC | Common Stock | |
Shares Issued | shares | 62,084 |
6/20/2016 | Adar Bays, LLC | |
Price | $ / shares | $ 0.04 |
6/20/2016 | Adar Bays, LLC | Principal | |
Amount Converted | $ 4,415.39 |
6/20/2016 | Adar Bays, LLC | Interest | |
Amount Converted | $ 0 |
6/20/2016 | Adar Bays, LLC | Common Stock | |
Shares Issued | shares | 107,692 |
6/21/2016 | Black Forest Capital LLC | |
Price | $ / shares | $ 0.04 |
6/21/2016 | Black Forest Capital LLC | Principal | |
Amount Converted | $ 5,022.50 |
6/21/2016 | Black Forest Capital LLC | Interest | |
Amount Converted | $ 0 |
6/21/2016 | Black Forest Capital LLC | Common Stock | |
Shares Issued | shares | 122,500 |
6/22/2016 | Black Forest Capital LLC | |
Price | $ / shares | $ 0.04 |
6/22/2016 | Black Forest Capital LLC | Principal | |
Amount Converted | $ 5,535 |
6/22/2016 | Black Forest Capital LLC | Interest | |
Amount Converted | $ 0 |
6/22/2016 | Black Forest Capital LLC | Common Stock | |
Shares Issued | shares | 135,000 |
6/27/2016 | Blackbridge Capital LLC | |
Price | $ / shares | $ 0.04 |
6/27/2016 | Blackbridge Capital LLC | Principal | |
Amount Converted | $ 500 |
6/27/2016 | Blackbridge Capital LLC | Interest | |
Amount Converted | $ 0 |
6/27/2016 | Blackbridge Capital LLC | Common Stock | |
Shares Issued | shares | 12,195 |
7/8/2016 | Adar Bays, LLC | |
Price | $ / shares | $ 0.04 |
7/8/2016 | Adar Bays, LLC | Principal | |
Amount Converted | $ 3,075 |
7/8/2016 | Adar Bays, LLC | Interest | |
Amount Converted | $ 0 |
7/8/2016 | Adar Bays, LLC | Common Stock | |
Shares Issued | shares | 75,000 |
7/15/2016 | Kodiak Capital | |
Price | $ / shares | $ 0.02 |
7/15/2016 | Kodiak Capital | Principal | |
Amount Converted | $ 3,717 |
7/15/2016 | Kodiak Capital | Interest | |
Amount Converted | $ 0 |
7/15/2016 | Kodiak Capital | Common Stock | |
Shares Issued | shares | 158,183 |
Note 14- Preferred Stock (Detai
Note 14- Preferred Stock (Details) - F-Squared Enterprises LLC - shares | Oct. 17, 2016 | Jul. 27, 2016 |
Common Stock | ||
Conversion of Stock, Shares Converted | 1,515,000 | |
Conversion of Stock, Shares Issued | 75,750 | |
Series A Preferred Stock | ||
Conversion of Stock, Shares Issued | 1,515,000 |
Note 15 - Subsequent Events (De
Note 15 - Subsequent Events (Details) - USD ($) | Nov. 04, 2016 | Nov. 01, 2016 | Oct. 17, 2016 | Jul. 27, 2016 | Mar. 31, 2016 | Mar. 18, 2016 | Feb. 08, 2016 | Jan. 25, 2016 | Jan. 21, 2016 | Jan. 14, 2016 | Jan. 13, 2016 | Nov. 30, 2015 | Mar. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Jan. 24, 2016 | Dec. 31, 2014 | Nov. 12, 2014 |
Common Stock, shares authorized | 75,000,000 | 2,000,000,000 | 2,000,000,000 | 75,000,000 | ||||||||||||||
Preferred Stock, shares authorized | 5,000,000 | 5,000,000 | 5,000,000 | 5,000,000 | ||||||||||||||
Stated Interest Rate | 0.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 275,050 | |||||||||||||||||
Convertible notes payable, discount | $ 42,797 | $ 122,084 | $ 0 | |||||||||||||||
Common Stock | ||||||||||||||||||
Common Stock, shares authorized | 2,000,000,000 | |||||||||||||||||
Stock Issued During Period, Shares, License Agreement | 6,614 | |||||||||||||||||
F-Squared Enterprises LLC | Common Stock | ||||||||||||||||||
Conversion of Stock, Shares Converted | 1,515,000 | |||||||||||||||||
Conversion of Stock, Shares Issued | 75,750 | |||||||||||||||||
B44 | ||||||||||||||||||
Stated Interest Rate | 1.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 75,000 | |||||||||||||||||
Class of Warrant, Outstanding | 11,250 | |||||||||||||||||
Maturity Date | Jun. 30, 2016 | |||||||||||||||||
Colonial Stock Transfer | ||||||||||||||||||
Stated Interest Rate | 10.00% | |||||||||||||||||
Maturity Date | Jan. 14, 2017 | |||||||||||||||||
Convurge, LLC | ||||||||||||||||||
Stock Issued During Period, Shares, License Agreement | 2,500 | |||||||||||||||||
Convurge, LLC | Common Stock | ||||||||||||||||||
Stock Issued During Period, Shares, License Agreement | 2,500 | |||||||||||||||||
Consigliere Inc | ||||||||||||||||||
Class of Warrant, Outstanding | 5,000 | |||||||||||||||||
KiwiTech, LLC | ||||||||||||||||||
Class of Warrant, Outstanding | 15,625 | |||||||||||||||||
Kodiak Capital | ||||||||||||||||||
Stated Interest Rate | 12.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 50,000 | |||||||||||||||||
Maturity Date | Dec. 1, 2016 | |||||||||||||||||
Convertible notes payable, discount | $ 0 | |||||||||||||||||
Kodiak Capital | Convertible Notes Payable | ||||||||||||||||||
Conversion feature | convertible into restricted shares of our common stock, at Kodiak's sole discretion, at the lower of the closing bid price on the principal market on the trading day preceding the note date or 50% of the lowest closing bid price for the common stock during the 30 consecutive trading days immediately preceding the conversion date, with some exceptions. | |||||||||||||||||
Proceeds from Issuance of Debt | $ 35,000 | |||||||||||||||||
Stated Interest Rate | 12.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 50,000 | |||||||||||||||||
Maturity Date | Dec. 1, 2016 | |||||||||||||||||
Convertible notes payable, discount | $ 15,000 | |||||||||||||||||
Subsequent Event | ||||||||||||||||||
Stockholders' Equity, Reverse Stock Split | 20-to-one reverse split | |||||||||||||||||
Common Stock, shares authorized | 2,000,000,000 | |||||||||||||||||
Preferred Stock, shares authorized | 5,000,000 | |||||||||||||||||
Stock issued for Accounting Services | 50,000 | |||||||||||||||||
Subsequent Event | F-Squared Enterprises LLC | Common Stock | ||||||||||||||||||
Conversion of Stock, Shares Converted | 1,515,000 | |||||||||||||||||
Conversion of Stock, Shares Issued | 75,750 | |||||||||||||||||
Subsequent Event | Accredited Investor Note Purchase | ||||||||||||||||||
Conversion feature | On November 4, 2016, pursuant to a note purchase and assignment agreement dated October 31, 2016, B44 LLC agreed to assign its two promissory notes ($50,000 issued on September 6, 2015 and $75,000 issued on January 13, 2016) to an unaffiliated accredited investor. Under the note purchase and assignment agreement, the accredited investor paid $25,000 to B44 and has the option to purchase B44's remaining interest in the notes in four additional tranches of $25,000 each in its sole discretion. As part of this transaction, we issued a replacement convertible promissory note to the accredited investor that provides for interest at 2% per annum and conversion of any amounts funded by the replacement note into shares of CannaSys common stock in accordance with its terms. The principal sum and related interest due to the holder shall be prorated based on the number of tranches actually acquired by the holder from B44. | |||||||||||||||||
Subsequent Event | Accredited Investor | ||||||||||||||||||
Proceeds from Issuance of Debt | $ 25,000 | |||||||||||||||||
Stated Interest Rate | 8.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 137,500 | |||||||||||||||||
Debt Instrument, Description | We received $23,000, less $2,000 retained by the accredited investor for its legal fees and expenses. The Securities Purchase Agreement and Convertible Promissory Note provide for funding up to $137,500, in tranches of $25,000 each, with additional tranches in the sole discretion of the accredited investor, resulting in funding up to $125,000 with total original issue discounts of $12,500 pro rated per tranche under the note. The outstanding amounts funded under the convertible note are convertible into shares of our common stock in accordance with its terms. | |||||||||||||||||
Subsequent Event | AccountantMember | ||||||||||||||||||
Stock issued for Accounting Services | 1,250 | |||||||||||||||||
Subsequent Event | Viridian Capital Advisors LLC | ||||||||||||||||||
Class of Warrant, Outstanding | 12,500 | 12,500 | ||||||||||||||||
Subsequent Event | B44 | Notes Payable, Other Payables | ||||||||||||||||||
Stated Interest Rate | 1.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 75,000 | |||||||||||||||||
Maturity Date | Jun. 30, 2016 | |||||||||||||||||
Subsequent Event | B44 | Notes Payable, Other Payables | 10K | ||||||||||||||||||
Class of Warrant, Outstanding | 11,250 | |||||||||||||||||
Subsequent Event | Colonial Stock Transfer | Convertible Notes Payable | ||||||||||||||||||
Conversion feature | convertible into restricted shares of our common stock, at Colonial's sole discretion, at a conversion price equal to 55% of the lowest trade price for the common stock during the 25 consecutive trading days immediately preceding the conversion date. | |||||||||||||||||
Stated Interest Rate | 10.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 6,605 | |||||||||||||||||
Maturity Date | Jan. 14, 2017 | |||||||||||||||||
Subsequent Event | Consigliere Inc | ||||||||||||||||||
Exercise Price of Warrants | $ 4.60 | |||||||||||||||||
Settlement Agreement Terms | (1) terminates the Asset Purchase Agreement of December 17, 2015, among us, LuvBuds, and Harris; (2) terminates the Consulting Agreement of January, 24, 2016, between us and Consigliere; (3) confirms retention by Harris of the stock grant for 15,000 shares of our common stock; (4) confirms retention by Harris of the warrant to purchase 5,000 shares of our common stock; (5) assigns the 70% membership interest in LuvBuds from us to Harris, with Harris assuming the obligations and duties related thereto; and (6) assigns the acquired assets in LuvBuds from us to Harris. | |||||||||||||||||
Subsequent Event | Consigliere Inc | Warrant | ||||||||||||||||||
Class of Warrant, Outstanding | 5,000 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Jan. 23, 2017 | |||||||||||||||||
Subsequent Event | KiwiTech, LLC | ||||||||||||||||||
Exercise Price of Warrants | $ 8 | |||||||||||||||||
Subsequent Event | KiwiTech, LLC | Warrant | ||||||||||||||||||
Class of Warrant, Outstanding | 312,500 | |||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Dec. 31, 2025 | |||||||||||||||||
Subsequent Event | Kodiak Capital | ||||||||||||||||||
Conversion feature | convertible into restricted shares of our common stock after 180 days from the issue date, at Kodiak's sole discretion, at 50% of the lowest closing bid price for the common stock during the 30 consecutive trading days immediately preceding the conversion date, with some exceptions | |||||||||||||||||
Subsequent Event | Kodiak Capital | Convertible Notes Payable | ||||||||||||||||||
Proceeds from Issuance of Debt | $ 35,000 | |||||||||||||||||
Stated Interest Rate | 12.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 50,000 | |||||||||||||||||
Maturity Date | Mar. 18, 2017 | |||||||||||||||||
Convertible notes payable, discount | $ 15,000 | |||||||||||||||||
Subsequent Event | Kodiak Capital | Buyer Note | ||||||||||||||||||
Stated Interest Rate | 12.00% | |||||||||||||||||
Debt Instrument, Face Amount | $ 50,000 | |||||||||||||||||
Maturity Date | Mar. 18, 2017 |
Note 15 - Subsequent Events_ Sc
Note 15 - Subsequent Events: Schedule of Debt Conversions (Details) - USD ($) | 2 Months Ended | 9 Months Ended |
Nov. 18, 2016 | Sep. 30, 2016 | |
Principal | ||
Amount Converted | $ 149,513.95 | |
Interest | ||
Amount Converted | $ 2,540 | |
Common Stock | ||
Shares Issued | 2,333,072 | |
Auctus Fund, LLC | ||
Amount Converted | $ 13,604 | |
Adar Bays, LLC | ||
Amount Converted | 7,790 | |
Tangiers Investment Group, LLC | ||
Amount Converted | $ 24,059 | |
Subsequent Event | Principal | ||
Amount Converted | $ 122,886.86 | |
Subsequent Event | Interest | ||
Amount Converted | $ 1,632.58 | |
Subsequent Event | Common Stock | ||
Shares Issued | 16,789,813 | |
Subsequent Event | 10/7/2016 | Kodiak Capital | ||
Price | $ 0.007 | |
Subsequent Event | 10/7/2016 | Kodiak Capital | Principal | ||
Amount Converted | $ 222.82 | |
Subsequent Event | 10/7/2016 | Kodiak Capital | Common Stock | ||
Shares Issued | 163,044 | |
Subsequent Event | 10/17/2016 | Auctus Fund, LLC | ||
Price | $ 0 | |
Subsequent Event | 10/17/2016 | Auctus Fund, LLC | Principal | ||
Amount Converted | $ 2,374.35 | |
Subsequent Event | 10/17/2016 | Auctus Fund, LLC | Common Stock | ||
Shares Issued | 166,039 | |
Subsequent Event | 10/17/2016 | Black Forest Capital LLC | ||
Price | $ 0.013 | |
Subsequent Event | 10/17/2016 | Black Forest Capital LLC | Principal | ||
Amount Converted | $ 2,262 | |
Subsequent Event | 10/17/2016 | Black Forest Capital LLC | Common Stock | ||
Shares Issued | 174,000 | |
Subsequent Event | 10/18/2016 | EMA Financial, LLC | ||
Price | $ 0.005 | |
Subsequent Event | 10/18/2016 | EMA Financial, LLC | Principal | ||
Amount Converted | $ 934.60 | |
Subsequent Event | 10/18/2016 | EMA Financial, LLC | Common Stock | ||
Shares Issued | 179,800 | |
Subsequent Event | 10/20/2016 | Auctus Fund, LLC | ||
Price | $ 0.014 | |
Subsequent Event | 10/20/2016 | Auctus Fund, LLC | Principal | ||
Amount Converted | $ 2,490.63 | |
Subsequent Event | 10/20/2016 | Auctus Fund, LLC | Common Stock | ||
Shares Issued | 174,170 | |
Subsequent Event | 10/20/2016 | Black Forest Capital LLC | ||
Price | $ 0.013 | |
Subsequent Event | 10/20/2016 | Black Forest Capital LLC | Principal | ||
Amount Converted | $ 2,480 | |
Subsequent Event | 10/20/2016 | Black Forest Capital LLC | Common Stock | ||
Shares Issued | 190,770 | |
Subsequent Event | 10/20/2016 | Colonial Stock Transfer | ||
Price | $ 0.012 | |
Subsequent Event | 10/20/2016 | Colonial Stock Transfer | Principal | ||
Amount Converted | $ 2,400 | |
Subsequent Event | 10/20/2016 | Colonial Stock Transfer | Common Stock | ||
Shares Issued | 205,128 | |
Subsequent Event | 10/21/2016 | Black Forest Capital LLC | ||
Price | $ 0.013 | |
Subsequent Event | 10/21/2016 | Black Forest Capital LLC | Principal | ||
Amount Converted | $ 2,730 | |
Subsequent Event | 10/21/2016 | Black Forest Capital LLC | Common Stock | ||
Shares Issued | 210,000 | |
Subsequent Event | 10/21/2016 | EMA Financial, LLC | ||
Price | $ 0.005 | |
Subsequent Event | 10/21/2016 | EMA Financial, LLC | Principal | ||
Amount Converted | $ 1,125.54 | |
Subsequent Event | 10/21/2016 | EMA Financial, LLC | Common Stock | ||
Shares Issued | 216,450 | |
Subsequent Event | 10/19/2016 | Microcap Equity Group LLC | ||
Price | $ 0.013 | |
Subsequent Event | 10/19/2016 | Microcap Equity Group LLC | Principal | ||
Amount Converted | $ 2,264 | |
Subsequent Event | 10/19/2016 | Microcap Equity Group LLC | Common Stock | ||
Shares Issued | 174,153 | |
Subsequent Event | 10/24/2016 | Auctus Fund, LLC | ||
Price | $ 0.010 | |
Subsequent Event | 10/24/2016 | Auctus Fund, LLC | Principal | ||
Amount Converted | $ 2,491.84 | |
Subsequent Event | 10/24/2016 | Auctus Fund, LLC | Common Stock | ||
Shares Issued | 239,600 | |
Subsequent Event | 10/24/2016 | Black Forest Capital LLC | ||
Price | $ 0.013 | |
Subsequent Event | 10/24/2016 | Black Forest Capital LLC | Principal | ||
Amount Converted | $ 3,107 | |
Subsequent Event | 10/24/2016 | Black Forest Capital LLC | Common Stock | ||
Shares Issued | 239,000 | |
Subsequent Event | 10/24/2016 | Microcap Equity Group LLC | ||
Price | $ 0.013 | |
Subsequent Event | 10/24/2016 | Microcap Equity Group LLC | Principal | ||
Amount Converted | $ 3,110 | |
Subsequent Event | 10/24/2016 | Microcap Equity Group LLC | Common Stock | ||
Shares Issued | 239,230 | |
Subsequent Event | 10/25/2016 | Black Forest Capital LLC | ||
Price | $ 0.013 | |
Subsequent Event | 10/25/2016 | Black Forest Capital LLC | Principal | ||
Amount Converted | $ 3,367 | |
Subsequent Event | 10/25/2016 | Black Forest Capital LLC | Common Stock | ||
Shares Issued | 259,000 | |
Subsequent Event | 10/26/2016 | Auctus Fund, LLC | ||
Price | $ 0.010 | |
Subsequent Event | 10/26/2016 | Auctus Fund, LLC | Principal | ||
Amount Converted | $ 2,954.64 | |
Subsequent Event | 10/26/2016 | Auctus Fund, LLC | Common Stock | ||
Shares Issued | 284,100 | |
Subsequent Event | 10/26/2016 | EMA Financial, LLC | ||
Price | $ 0.005 | |
Subsequent Event | 10/26/2016 | EMA Financial, LLC | Principal | ||
Amount Converted | $ 1,525.16 | |
Subsequent Event | 10/26/2016 | EMA Financial, LLC | Common Stock | ||
Shares Issued | 293,300 | |
Subsequent Event | 10/26/2016 | Microcap Equity Group LLC | ||
Price | $ 0.013 | |
Subsequent Event | 10/26/2016 | Microcap Equity Group LLC | Principal | ||
Amount Converted | $ 3,382 | |
Subsequent Event | 10/26/2016 | Microcap Equity Group LLC | Common Stock | ||
Shares Issued | 260,153 | |
Subsequent Event | 10/26/2016 | Adar Bays, LLC | ||
Price | $ 0.020 | |
Subsequent Event | 10/26/2016 | Adar Bays, LLC | Principal | ||
Amount Converted | $ 5,000 | |
Subsequent Event | 10/26/2016 | Adar Bays, LLC | Common Stock | ||
Shares Issued | 250,000 | |
Subsequent Event | 10/27/2016 | Microcap Equity Group LLC | ||
Price | $ 0.013 | |
Subsequent Event | 10/27/2016 | Microcap Equity Group LLC | Principal | ||
Amount Converted | $ 3,382 | |
Subsequent Event | 10/27/2016 | Microcap Equity Group LLC | Common Stock | ||
Shares Issued | 260,153 | |
Subsequent Event | 10/28/2016 | Black Forest Capital LLC | ||
Price | $ 0.013 | |
Subsequent Event | 10/28/2016 | Black Forest Capital LLC | Principal | ||
Amount Converted | $ 4,000 | |
Subsequent Event | 10/28/2016 | Black Forest Capital LLC | Common Stock | ||
Shares Issued | 311,285 | |
Subsequent Event | 10/28/2016 | Microcap Equity Group LLC | ||
Price | $ 0.012 | |
Subsequent Event | 10/28/2016 | Microcap Equity Group LLC | Principal | ||
Amount Converted | $ 4,300 | |
Subsequent Event | 10/28/2016 | Microcap Equity Group LLC | Common Stock | ||
Shares Issued | 373,913 | |
Subsequent Event | 10/28/2016 | Adar Bays, LLC | ||
Price | $ 0.012 | |
Subsequent Event | 10/28/2016 | Adar Bays, LLC | Principal | ||
Amount Converted | $ 4,150 | |
Subsequent Event | 10/28/2016 | Adar Bays, LLC | Common Stock | ||
Shares Issued | 342,412 | |
Subsequent Event | 10/31/2016 | Kodiak Capital | ||
Price | $ 0 | |
Subsequent Event | 10/31/2016 | Kodiak Capital | Principal | ||
Amount Converted | $ 1,453.50 | |
Subsequent Event | 10/31/2016 | Kodiak Capital | Common Stock | ||
Shares Issued | 171,000 | |
Subsequent Event | 10/31/2016 | Auctus Fund, LLC | ||
Price | $ 0.009 | |
Subsequent Event | 10/31/2016 | Auctus Fund, LLC | Principal | ||
Amount Converted | $ 3,445.40 | |
Subsequent Event | 10/31/2016 | Auctus Fund, LLC | Common Stock | ||
Shares Issued | 374,500 | |
Subsequent Event | 10/31/2016 | EMA Financial, LLC | ||
Price | $ 0.005 | |
Subsequent Event | 10/31/2016 | EMA Financial, LLC | Principal | ||
Amount Converted | $ 1,974.38 | |
Subsequent Event | 10/31/2016 | EMA Financial, LLC | Common Stock | ||
Shares Issued | 429,213 | |
Subsequent Event | 10/31/2016 | Microcap Equity Group LLC | ||
Price | $ 0.012 | |
Subsequent Event | 10/31/2016 | Microcap Equity Group LLC | Principal | ||
Amount Converted | $ 4,772 | |
Subsequent Event | 10/31/2016 | Microcap Equity Group LLC | Common Stock | ||
Shares Issued | 414,956 | |
Subsequent Event | 10/31/2016 | Adar Bays, LLC | ||
Price | $ 0.011 | |
Subsequent Event | 10/31/2016 | Adar Bays, LLC | Principal | ||
Amount Converted | $ 4,050 | |
Subsequent Event | 10/31/2016 | Adar Bays, LLC | Common Stock | ||
Shares Issued | 373,913 | |
Subsequent Event | 10/31/2016 -2 | Kodiak Capital | ||
Price | $ 0 | |
Subsequent Event | 10/31/2016 -2 | Kodiak Capital | Principal | ||
Amount Converted | $ 309.26 | |
Subsequent Event | 10/31/2016 -2 | Kodiak Capital | Common Stock | ||
Shares Issued | 824,694 | |
Subsequent Event | 11/1/2016 | Adar Bays, LLC | ||
Price | $ 0.011 | |
Subsequent Event | 11/1/2016 | Adar Bays, LLC | Principal | ||
Amount Converted | $ 5,150 | |
Subsequent Event | 11/1/2016 | Adar Bays, LLC | Common Stock | ||
Shares Issued | 469,565 | |
Subsequent Event | 11/2/2016 | Black Forest Capital LLC | ||
Price | $ 0.011 | |
Subsequent Event | 11/2/2016 | Black Forest Capital LLC | Principal | ||
Amount Converted | $ 3,977.50 | |
Subsequent Event | 11/2/2016 | Black Forest Capital LLC | Common Stock | ||
Shares Issued | 370,000 | |
Subsequent Event | 11/2/2016 | EMA Financial, LLC | ||
Price | $ 0.004 | |
Subsequent Event | 11/2/2016 | EMA Financial, LLC | Principal | ||
Amount Converted | $ 2,153.83 | |
Subsequent Event | 11/2/2016 | EMA Financial, LLC | Common Stock | ||
Shares Issued | 530,500 | |
Subsequent Event | 11/2/2016 | Microcap Equity Group LLC | ||
Price | $ 0.010 | |
Subsequent Event | 11/2/2016 | Microcap Equity Group LLC | Principal | ||
Amount Converted | $ 5,200 | |
Subsequent Event | 11/2/2016 | Microcap Equity Group LLC | Common Stock | ||
Shares Issued | 512,315 | |
Subsequent Event | 11/2/2016 | Adar Bays, LLC | ||
Price | $ 0.010 | |
Subsequent Event | 11/2/2016 | Adar Bays, LLC | Principal | ||
Amount Converted | $ 4,750 | |
Subsequent Event | 11/2/2016 | Adar Bays, LLC | Common Stock | ||
Shares Issued | 465,116 | |
Subsequent Event | 11/3/2016 | Auctus Fund, LLC | ||
Price | $ 0.008 | |
Subsequent Event | 11/3/2016 | Auctus Fund, LLC | Principal | ||
Amount Converted | $ 3,040.94 | |
Subsequent Event | 11/3/2016 | Auctus Fund, LLC | Common Stock | ||
Shares Issued | 374,500 | |
Subsequent Event | 11/3/2016 | Microcap Equity Group LLC | ||
Price | $ 0 | |
Subsequent Event | 11/3/2016 | Microcap Equity Group LLC | Common Stock | ||
Shares Issued | 497,767 | |
Subsequent Event | 11/3/2016 | Adar Bays, LLC | ||
Price | $ 0.005 | |
Subsequent Event | 11/3/2016 | Adar Bays, LLC | Principal | ||
Amount Converted | $ 2,200 | |
Subsequent Event | 11/3/2016 | Adar Bays, LLC | Common Stock | ||
Shares Issued | 462,264 | |
Subsequent Event | 11/4/2016 | Black Forest Capital LLC | ||
Price | $ 0.003 | |
Subsequent Event | 11/4/2016 | Black Forest Capital LLC | Principal | ||
Amount Converted | $ 2,090.33 | |
Subsequent Event | 11/4/2016 | Black Forest Capital LLC | Interest | ||
Amount Converted | $ 1,566.77 | |
Subsequent Event | 11/4/2016 | Black Forest Capital LLC | Common Stock | ||
Shares Issued | 690,000 | |
Subsequent Event | 11/4/2016 | Adar Bays, LLC | ||
Price | $ 0.003 | |
Subsequent Event | 11/4/2016 | Adar Bays, LLC | Principal | ||
Amount Converted | $ 1,750 | |
Subsequent Event | 11/4/2016 | Adar Bays, LLC | Common Stock | ||
Shares Issued | 664,528 | |
Subsequent Event | 11/4/2016 | Tangiers Investment Group, LLC | ||
Price | $ 0.005 | |
Subsequent Event | 11/4/2016 | Tangiers Investment Group, LLC | Principal | ||
Amount Converted | $ 6,591 | |
Subsequent Event | 11/4/2016 | Tangiers Investment Group, LLC | Common Stock | ||
Shares Issued | 1,381,761 | |
Subsequent Event | 11/7/2016 | Adar Bays, LLC | ||
Price | $ 0.005 | |
Subsequent Event | 11/7/2016 | Adar Bays, LLC | Principal | ||
Amount Converted | $ 2,472 | |
Subsequent Event | 11/7/2016 | Adar Bays, LLC | Interest | ||
Amount Converted | $ 0 | |
Subsequent Event | 11/7/2016 | Adar Bays, LLC | Common Stock | ||
Shares Issued | 513,585 | |
Subsequent Event | 11/8/2016 | Auctus Fund, LLC | ||
Price | $ 0.005 | |
Subsequent Event | 11/8/2016 | Auctus Fund, LLC | Principal | ||
Amount Converted | $ 3,960.91 | |
Subsequent Event | 11/8/2016 | Auctus Fund, LLC | Interest | ||
Amount Converted | $ 61.97 | |
Subsequent Event | 11/8/2016 | Auctus Fund, LLC | Common Stock | ||
Shares Issued | 867,000 | |
Subsequent Event | 11/8/2016 | Black Forest Capital LLC | ||
Price | $ 0.005 | |
Subsequent Event | 11/8/2016 | Black Forest Capital LLC | Principal | ||
Amount Converted | $ 1,593.77 | |
Subsequent Event | 11/8/2016 | Black Forest Capital LLC | Interest | ||
Amount Converted | $ 3.84 | |
Subsequent Event | 11/8/2016 | Black Forest Capital LLC | Common Stock | ||
Shares Issued | 301,436 | |
Subsequent Event | 11/8/2016 | EMA Financial, LLC | ||
Price | $ 0.002 | |
Subsequent Event | 11/8/2016 | EMA Financial, LLC | Principal | ||
Amount Converted | $ 1,898.46 | |
Subsequent Event | 11/8/2016 | EMA Financial, LLC | Interest | ||
Amount Converted | $ 0 | |
Subsequent Event | 11/8/2016 | EMA Financial, LLC | Common Stock | ||
Shares Issued | 895,500 |
Note 2 - Summary of Significa52
Note 2 - Summary of Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Details | |||||
Cash | $ 1,860 | $ 7,720 | $ 19,381 | $ 525,720 | $ 88,389 |
Note 9 - Related-party Transa53
Note 9 - Related-party Transactions (Details) | Dec. 31, 2014USD ($) |
Details | |
Due to a related party | $ 1,320 |
Note 11 - Convertible Notes P54
Note 11 - Convertible Notes Payable: Schedule of Short-Term Debt and Amortization (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Sep. 30, 2016 | Dec. 31, 2014 | |
Initial Valuation | $ 275,050 | ||
Current Remaining Debt Discount to Amortize over Five Remaining Months | 122,084 | $ 42,797 | $ 0 |
Interest Expense Recognized for Immediately Convertible Notes and One Month of Amortization | 152,966 | ||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 152,966 | $ 456,094 | |
EMA Financial, LLC | |||
Initial Valuation | 30,800 | ||
Current Remaining Debt Discount to Amortize over Five Remaining Months | 0 | ||
Interest Expense Recognized for Immediately Convertible Notes and One Month of Amortization | 30,800 | ||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 30,800 | ||
Tangiers Investment Group, LLC | |||
Initial Valuation | 60,000 | ||
Current Remaining Debt Discount to Amortize over Five Remaining Months | (45,000) | ||
Interest Expense Recognized for Immediately Convertible Notes and One Month of Amortization | 15,000 | ||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 15,000 | ||
Kodiak Capital | |||
Initial Valuation | 50,000 | ||
Current Remaining Debt Discount to Amortize over Five Remaining Months | 0 | ||
Interest Expense Recognized for Immediately Convertible Notes and One Month of Amortization | 50,000 | ||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 50,000 | ||
Kodiak Capital | Equity Purchase Agreement | |||
Initial Valuation | 50,000 | ||
Current Remaining Debt Discount to Amortize over Five Remaining Months | (45,000) | ||
Interest Expense Recognized for Immediately Convertible Notes and One Month of Amortization | 5,000 | ||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 5,000 | ||
Auctus Fund, LLC | |||
Initial Valuation | 49,250 | ||
Current Remaining Debt Discount to Amortize over Five Remaining Months | 0 | ||
Interest Expense Recognized for Immediately Convertible Notes and One Month of Amortization | 49,250 | ||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | 49,250 | ||
Adar Bays, LLC | |||
Initial Valuation | 35,000 | ||
Current Remaining Debt Discount to Amortize over Five Remaining Months | (32,084) | ||
Interest Expense Recognized for Immediately Convertible Notes and One Month of Amortization | 2,916 | ||
Convertible notes payable, net of discount of $42,797 and $122,084, respectively | $ 2,916 |
Note 14 - Income Tax_ Schedule
Note 14 - Income Tax: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred Tax Assets: | ||
NOL Carryover | $ 1,493,600 | $ 188,900 |
Related-party accrual | 0 | 500 |
Depreciation | 300 | 1,500 |
Payroll accrual | 6,000 | 0 |
Deferred Tax Liabilities: | ||
Less valuation allowance | (1,499,900) | (190,900) |
Net deferred tax assets | $ 0 | $ 0 |
Note 14 - Income Tax_ Schedul56
Note 14 - Income Tax: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||||||
Book Income (loss) | $ (1,504,600) | $ (583,800) | ||||
Meals and Entertainment | 1,600 | 1,000 | ||||
Depreciation | (300) | (1,500) | ||||
Other Nondeductible Expense | 77,900 | 394,900 | ||||
Payroll accrual | 6,000 | |||||
Related party accruals | (500) | 500 | ||||
Valuation allowance | 1,419,900 | 188,900 | ||||
Provision for income taxes |
Note 14 - Income Tax (Details)
Note 14 - Income Tax (Details) | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Details | |
Net Operating Loss Carryforwards | $ 2,072,000 |
Operating Loss Carryforwards, Expiration Date | Dec. 31, 2033 |