DLT Resolution (DLTI) 10-Q 21 May 18 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2018	May 21, 2018
Document And Entity Information
Entity Registrant Name	DLT Resolution Inc.
Entity Central Index Key	1,420,368
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	Yes
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		18,753,577
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Current assets
Cash	$ 45,966	$ 8,609
Accounts receivable	233,947
Total current assets	279,913	8,609
Equipment, net of accumulated depreciation	20,617
Intangible assets, net of accumulated amortization	615,431	115,944
Goodwill	514,437
Total assets	1,430,398	124,553
Current liabilities
Bank overdraft	347	7
Accounts payable and accrued liabilities	59,043	26,415
Accounts payable, related party	40,000	55,000
Interest payable, related party	21,354	19,545
Dividends payable	27,437	26,697
Related party payables	61,643	44,679
Related party notes payable	81,500	81,500
Derivative liability	25,458	20,328
Convertible notes payable	4,900	4,900
Total current liabilities	321,682	279,071
Notes payable, net of current portion	5,000	5,000
Other long term liability	841,702
Total liabilities	1,168,384	284,071
Stockholders' equity (deficit)
Common stock, $0.001 par value; 275,000,000 shares authorized; 22,568,577 and 21,572,871 issued; 18,753,577 and 17,757,871 outstanding at March 31, 2018 and December 31, 2017	22,569	21,573
Additional paid in capital	3,351,641	3,129,894
Other comprehensive income (loss)	(39,128)	16
Treasury stock, 3,815,000 shares	(5,300)	(5,300)
Accumulated deficit	(3,383,786)	(3,394,701)
Total stockholders' equity (deficit)	9,996	(159,518)
Non-controlling interest	252,018
Total equity (deficit)	262,014	(159,518)
Total liabilities and stockholders' equity (deficit)	1,430,398	124,553
Series A Convertible Preferred Stock
Stockholders' equity (deficit)
Series A convertible preferred stock, $1.00 par value; 5,000,000 shares authorized; 0 and 25,000 issued and outstanding at March 31, 2018 and December 31, 2017		25,000
Series B Convertible Preferred Stock [Member]
Stockholders' equity (deficit)
Series A convertible preferred stock, $1.00 par value; 5,000,000 shares authorized; 0 and 25,000 issued and outstanding at March 31, 2018 and December 31, 2017	$ 64,000	$ 64,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2018	Dec. 31, 2017
Stockholders' deficit
Common stock; par value	$ 0.001	$ 0.001
Common stock; shares authorized	275,000,000	275,000,000
Common stock; shares issued	22,568,577	21,572,871
Common stock; shares outstanding	18,753,577	17,757,871
Treasury stock shares	3,815,000	3,815,000
Series A Convertible Preferred Stock
Stockholders' deficit
Preferred stock; par value	$ 1	$ 1
Preferred stock; shares authorized	5,000,000	5,000,000
Preferred stock; shares issued	0	25,000
Preferred stock; shares outstanding	0	25,000
Common stock; par value	$ 0.10
Common stock; shares authorized	5,000,000
Series B Convertible Preferred Stock [Member]
Stockholders' deficit
Preferred stock; par value	$ 1	$ 1
Preferred stock; shares authorized	500,000	500,000
Preferred stock; shares issued	64,000	64,000
Preferred stock; shares outstanding	64,000	64,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidated Statements Of Operations
Revenue	$ 148,388
Cost of revenue	29,067
Gross margin	119,321
Operating expenses
General and administrative	72,021	468
Professional fees	16,375	2,022
Total operating expenses	88,396	2,490
Income (loss) from operations	30,925	(2,490)
Other income (expense)
Other income		26,306
Loss on change in fair market value of derivative liability	(5,130)
Interest expense	(1,929)	(3,720)
Total other income (expense)	(7,059)	22,586
Income before income taxes	23,866	20,096
Income taxes
Net income	23,866	20,096
Income attributable to non-controlling interest	(12,211)
Net income attributable to DLT Resolution, Inc.	11,655	20,096
Preferred stock dividends declared	(740)
Net income attributable to common shareholders	$ 10,915	$ 20,096
Net income per basic share outstanding	$ 0	$ 0
Net income per diluted share outstanding	$ 0	$ 0
Weighted average basic shares outstanding	18,563,956	23,385,878
Weighted average diluted shares outstanding	19,053,956	23,385,878

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Consolidated Statements Of Comprehensive Loss
Net income	$ 23,866	$ 20,096
Other comprehensive loss
Foreign currency translation adjustment	(39,144)
Total other comprehensive loss	(39,144)
Comprehensive income (loss)	$ (15,278)	$ 20,096

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities
Net income	$ 23,866	$ 20,096
Adjustments to reconcile net loss to net cash used in operating activities
Forgiveness of debt		(26,306)
Depreciation and amortization expense	29,270
Loss on change in fair market value of derivative liability	5,130
Expenses paid on behalf of the company by related parties		468
Changes in operating assets and liabilities
Accounts receivable	(88,128)
Interest payable, related party	1,809
Accounts payable and accrued liabilities	(15,457)	5,742
Accounts payable, related party	(15,000)
Net cash used in operating activities	(58,510)
Net cash used in investing activities
Cash flows from financing activities
Proceeds from bank overdraft	347
Proceeds from related party payables	21,836
Repayments of related party advances	(4,731)
Proceeds from the sale of common stock	77,500
Net cash provided by financing activities	94,952
Net change in cash	36,442
Effect of exchange rate on cash	915
Cash at beginning of period	8,609
Cash at end of period	45,966
Supplemental cash flow information
Cash paid for interest
Cash paid for income taxes
Non-cash investing and financing activities
Preferred dividend declared	740
Other long term liability entered into for acquisition of A.J.D. Data Services	841,702
Common shares issued for acquisition of A.J.D. Data Services	120,243
Common shares issued in exchange for preferred shares	25,000
Forgiveness of related party convertible note payable		2,634
Forgiveness of related party interest payable		606
Forgiveness of convertible note payable		23,783
Forgiveness of note payable		600
Forgiveness of interest payable		1,923
Common shares issued in exchange for note payable principal		250,000
Purchase of intangible asset of account payable		$ 40,000

Nature of Business

Nature of Business	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 1 - Nature of Business	The accompanying unaudited interim consolidated financial statements of DLT Resolution, Inc. collectively referred to herein as (“DLT,” or the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements for the period ended December 31, 2017 and notes thereto contained in the Company’s Form 10-K filed with the SEC. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for fiscal 2017 as reported in the form 10-K have been omitted. During the three months ended March 31, 2018, the Company completed its acquisition of A.J.D. Data Services. See Note 9 – Acquisition of A.J.D. Data Services

Going Concern

Going Concern	12 Months Ended
	Dec. 31, 2016
Going Concern
Note 2 - Going Concern	The Company had an accumulated deficit of $3,383,786 and a working capital deficit of $41,769 as of March 31, 2018 and had limited revenues. These matters raise substantial doubt about the Company’s ability to continue as a going concern. Continuation of the Company’s existence depends upon its ability to obtain additional capital. Management’s plans in regards to this matter include raising additional equity financing and borrowing funds under a private credit facility and/or other credit sources. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 3 - Significant Accounting Policies	Use of Estimates The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Cash Equivalents The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. Income Taxes The Company accounts for income taxes under the asset and liability method, where deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. At March 31, 2018, there were no uncertain tax positions that require accrual. Accounts Receivable Accounts receivable balances are established for amounts owed to the Company from its customers from the sales of services and products. The Company closely monitors the collectability of outstanding accounts receivable and provide an allowance for doubtful accounts based on estimated collections of outstanding amounts. The Company had accounts receivable of $233,947 and $0 and an allowance for doubtful accounts of $0 and $0 as of March 31, 2018 and December 31, 2017, respectively. Revenue recognition The Company follows ASC 606 of the FASB Accounting Standards Codification Property and equipment Property and equipment are stated at cost less accumulated depreciation. The Company provides for depreciation using the straight-line method over the estimated useful lives of the related assets, which range from three to five years. Maintenance and repair costs are expensed as they are incurred while renewals and improvements which extend the useful life of an asset are capitalized. At the time of retirement or disposal of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated results of operations. Intangible Assets Intangible assets primarily consist of customer relationships, software, non-compete agreements and domain names The Company amortizes, to cost of revenue and operating expenses, definite-lived intangible assets on a straight-line basis over the life of the assets of five years. Impairment of Long-Lived Assets and Goodwill The carrying value of long-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. The Company tests goodwill for impairment annually as of December 31, or whenever events or changes in circumstances indicate that goodwill may be impaired. The Company initially assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company compares the reporting unit’s carrying amount to its fair value. If the reporting unit’s carrying amount exceeds its fair value, an impairment charge is recorded based on that difference. There was no impairment of long-lived assets or goodwill during the periods presented. Convertible debt The Company records beneficial conversion features related to the issuance of convertible debts that have conversion features at fixed or adjustable rates that are less than the Company’s stock prices on the respective issuance dates. The beneficial conversion features for the convertible instruments are recognized and measured by allocating a portion of the proceeds as an increase in additional paid-in capital and as a reduction to the carrying amount of the convertible instruments equal to the intrinsic value of the conversion features based on the difference between the effective conversion rates and the Company’s stock prices on the issuance dates. The beneficial conversion features are accreted by recording additional non-cash interest expense over the expected life of the convertible notes. Software Development Costs and Amortization The Company capitalizes software development costs in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 985-20 (previously Statement of Financial Accounting Standards (“SFAS”) No. 86, “Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed”). Software development costs are capitalized after technological feasibility is established. Once the software products become available for general release to the public, the Company amortizes such costs over the related product’s estimated economic useful life to general and administrative expenses. Net capitalized software development costs (included in intangible assets) totaled $119,000 (acquired via issuance of $64,000 of Series B Preferred Stock and $55,000 in accounts payable) at March 31, 2018 and December 31, 2017, respectively. Related amortization expense, included in general and administrative expenses, totaled $9,917 and $0 for the three months ended March 31, 2018 and 2017, respectively. Net Income (Loss) Per Share Basic loss per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. As of March 31, 2018, there was a convertible note outstanding that could convert to a total of 490,000 common shares and 3,675,000 common shares committed for issuance as part of the acquisition of A.J.D. Data Services (see Note 12 – Acquisition of A.J.D. Data Services Derivative Liabilities The Company records a debt discount related to the issuance of convertible debts that have conversion features at adjustable rates. The debt discount for the convertible instruments is recognized and measured by allocating a portion of the proceeds as an increase in additional paid-in capital and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features. The debt discount will be accreted by recording additional non-cash gains and losses related to the change in fair market values of derivative liabilities over the life of the convertible notes. Principals of Consolidation The consolidated financial statements represent the results of DLT Resolution, Inc., its wholly owned subsidiary, DLT Resolution Corp. and its 80% owned subsidiary A.J.D. Data Services (see Note 9 – Acquisition of A.J.D. Data Services Foreign Currency Translation The functional currency of the Company’s subsidiaries in Canada is the Canadian Dollar. The subsidiaries’ assets and liabilities have been translated to U.S. dollars using the exchange rates in effect at the balance sheet dates. Statements of operations amounts have been translated using the annual average exchange rate for each period. Resulting gains or losses from translating foreign currency financial statements are recorded as other comprehensive income (loss). Foreign currency transaction gains and losses resulting from exchange rate fluctuations on transactions denominated in a currency other than the local currency are included in other income (expense). There was not foreign currency transaction gains or losses recognized during the periods presented. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.

Related Party Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 4 - Related Party Transactions	No salaries were paid to directors or executives during the periods ended March 31, 2018 or 2017. During the three months ended March 31, 2018, the Company received advances from related parties totaling $21,836 to fund operations and made repayments on outstanding related party payables of $4,731. The advances are unsecured and due on demand. There was $61,643 and $44,679 due to related parties as of March 31, 2018 and December 31, 2017, respectively. See Note 6 for Related Party Notes Payable.

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 5 - Stockholders' Equity	Series A Convertible Preferred Stock The Company is authorized to issue up to 5,000,000 shares of Series A Convertible Preferred Stock. The Series A Convertible Preferred Stock can be converted to common shares at the option of the holder at a rate equal to $0.10 per share. During the three months ended March 31, 2018, the Company accepted the conversion of 25,000 shares of Series A Convertible Preferred Stock in exchange for 25,000 shares of common stock. There were 0 and 25,000 shares of series A convertible preferred stock issued and outstanding as of March 31, 2018 and December 31, 2017, respectively. Additionally, the Company had accrued dividends payable on series A convertible preferred stock totaling $27,437 and $26,697 at March 31, 2018 and December 31, 2017, respectively. Common Stock The authorized common stock of the Company consists of 275,000,000 shares and carries a par value of $0.001. During the year ended December 31, 2014, the Company bought back 380,000 post-split shares of common stock into treasury from a former officer for $100. The shares are being carried as treasury shares as reflected on the balance sheet. During the year ended December 31, 2017, the Company issued a $5,000 note payable and $200 related party payable for a total of 3,777,000 outstanding common shares which are carried as treasury stock. There were 3,815,000 common shares held as treasury stock as of March 31, 2018 and December 31, 2017, respectively. During the three months ended March 31, 2018, the Company issued 381,818 common shares for cash proceeds of $77,500; 525,000 common shares valued at $120,243 for the acquisition of A.J.D. Data Services; 25,000 common shares for the conversion of 25,000 shares of Series A Convertible Preferred Stock and 63,888 common shares for rounding differences from the effect of a reverse stock split effected during the year ended December 31, 2017. There were 22,568,577 and 21,572,871 common shares issued and 18,753,577 and 17,757,871 outstanding at March 31, 2018 and December 31, 2017, respectively.

Related Party Notes Payable

Related Party Notes Payable	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 6 - Related Party Notes Payable	During the year ended December 31, 2015, the Company entered into a note payable with a related party as a settlement for payment of consulting services provided valued at $350,000. The note carries interest of 9% compounded annually and was due on November 19, 2016. During the year ended December 31, 2016, the Company issued 50,000 shares of series A convertible preferred stock as repayment of $31,500 of accrued interest and $18,500 of outstanding principal. Additionally, on January 31, 2017, the Company issued 1,250,000 shares of common stock as repayment of $250,000 of principal. There was $81,500 and $81,500 of principal and $21,354 and $19,545 of accrued interest due as of March 31, 2018 and December 31, 2017. Accrued interest payable is included in “interest payable, related party” on the balance sheet. On August 1, 2017, the Company entered into a note payable with an unrelated party to purchase common stock held by the unrelated party. The note is due on July 1, 2019 and bears no interest. There was $5,000 and $5,000 due as of March 31, 2018 and December 31, 2017. Future maturities of notes payable are: Year ended December 31, 2018 $ 81,500 2019 5,000 Total $ 86,500

Convertible Notes Payable

Convertible Notes Payable	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 7 - Convertible Notes Payable	On May 22, 2017, the Company entered into a convertible note payable with an unrelated party for $4,900 which was paid to a vendor on the Company’s behalf. The note carries interest at 10% per annum, is due on demand and is convertible at the option of the holder into common stock of the Company at a rate equal to the lesser of a 50% discount from the last trade price of the stock or $0.01 per share. There was $4,900 and $4,900 of principal and $3,169 and $3,048 of accrued interest due as of March 31, 2018 and December 31, 2017, respectively, which is included in “accounts payable and accrued liabilities” on the balance sheet. See Note 8 for explanation of related derivative liability derived from variable conversion rate. This note was repaid in full in May 2018 (Note 10).

Derivative Liability

Derivative Liability	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 8 - Derivative Liability	As of March 31, 2018 and December 31, 2017, Company had a derivative liability balance of $25,458 and $20,328 on the balance sheets and recorded a loss of $5,130 and $0 from derivative liability fair value adjustments during the three months ended March 31, 2018 and 2017. The derivative liability activity comes from convertible notes payable as follows: As discussed in Note 7 – Convertible Notes Payable The embedded derivative for the note is carried on the Company’s balance sheet at fair value. The derivative liability is marked-to-market each measurement period and any unrealized change in fair value is recorded as a component of the income statement and the associated fair value carrying amount on the balance sheet is adjusted by the change. The Company fair values the embedded derivative using the Black-Scholes option pricing model. The aggregate fair value of the derivative at the issuance date of the note was $5,348 which was recorded as a derivative liability on the balance sheet. The Company recorded a debt discount of $4,900 which was equal to the face value of the convertible note, and immediately expensed $448. Although the note is due on demand, upon issuance the Company estimated a six-month repayment period, over which they amortized the debt discount in full. As such, the Company recorded $4,900 in amortization expense during the year ended December 31, 2017. At March 31, 2018, the Company marked-to-market the fair value of the derivative liabilities related to notes and determined an aggregate fair value of $25,458 and recorded a $5,130 loss from change in fair value for the three months ended March 31, 2018. The fair value of the embedded derivatives for the notes was determined using a Black Scholes valuation model based on the following assumptions: (1) expected volatility of 387%, (2) risk-free interest rate of 1.93%, and (3) expected life of 0.50 of a year. The following table summarizes the derivative liabilities included in the balance sheet at March 31, 2018: Fair Value of Embedded Derivative Liabilities: Balance, December 31, 2017 $ 20,328 Change in fair market value 5,130 Balance, March 31, 2018 $ 25,458

Acquisition of A.J.D. Data Serv

Acquisition of A.J.D. Data Services	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Note 9 – Acquisition of A.J.D. Data Services	On January 21, 2018, the Company entered into and closed the transactions contemplated by the definitive stock purchase agreement and plan of re-organization by and among the Company, A.J.D. Data Services Ltd., a limited liability company organized under the laws of Ontario (“A.J.D.”), the stockholders of A.J.D. and other parties signatory thereto to acquire 80 shares, representing 80% of the issued and outstanding capital stock of A.J.D. for 525,000 restricted common shares of the Company. A.J.D. is focused on document imaging, telemarketing, data entry, document management and all other back-end functions. The acquisition is intended to be part of a tax free share for share exchange which will see DLT Resolution issuing restricted common shares on closing and an additional 3,675,000 restricted common shares upon meeting the following milestones: · 1,050,000 Shares upon A.J.D Data Services reaching $500,000 in gross sales · 1,050,000 Shares upon A.J.D Data Services reaching $1,000,000 in cumulated gross sales · 525,000 Shares upon A.J.D Data Services reaching $1,500,000 in cumulated gross sales with $100,000 in pre-tax earnings · 525,000 Shares upon A.J.D Data Services reaching $2,000,000 in cumulated gross sales with $150,000 in pre-tax earnings · 525,000 Shares upon A.J.D Data Services reaching $2,500,000 in cumulated gross sales with $200,000 in pre-tax earnings The Company applied the acquisition method to the business combination and valued each of the assets acquired (cash, accounts receivable, equipment, customer relationships, software, domain names and non-compete agreements) and liabilities assumed (accounts payable and related party payable) at fair value as of the acquisition date. The cash, accounts receivable, accounts payable and related party payable were deemed to be recorded at fair value as of the acquisition date. The Company determined the fair value of the equipment to be historical net book value. The preliminary allocation of the purchase price was based on estimates of the fair value of the assets and liabilities assumed based on provisional amounts. The allocation of the excess purchase price is not final and the amounts allocated to intangible assets are subject to change pending the completion of final valuations of certain assets and liabilities. Under the purchase agreement, the Company issued 525,000 shares of common stock valued at $120,243 and committed to issue an additional 3,675,000 shares of common stock at certain milestones which was determined to have a fair value of $841,702 in exchange for a 80% interest. The estimated fair value of the common stock to be issued of $841,702 is shown as an “other long term liability” on the face of the balance sheet. The following table shows the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: ASSETS ACQUIRED Cash $ 302 Accounts receivable 152,489 Equipment 22,743 Customer relationships 207,364 Software 156,924 Non-compete agreement 173,738 Domain name 6,405 Goodwill 531,484 TOTAL ASSETS ACQUIRED $ 1,251,449 LIABILITIES ASSUMED Accounts payable 49,380 Related party payable 317 TOTAL LIABILITIES ASSUMED 49,697 Non-controlling interest (239,807 ) NET ASSETS ACQUIRED $ 961,945 The intangible assets acquired will be amortized over 5 years. The non-controlling interest was valued using an enterprise value approach whereby the total value of all net assets of A.J.D. were valued with the non-controlling interest representing the minority interest percentage of the net assets as of the date of acquisition. The non-controlling interest was determined to have a fair value of $239,807 as of the date of acquisition. From the period of acquisition on January 21, 2018 to March 31, 2018, A.J.D. generated total revenues of $143,919.

Concentrations of Revenue

Concentrations of Revenue	12 Months Ended
	Dec. 31, 2016
Notes to Financial Statements
Note 10 – Concentrations of Revenue	During the three months ended March 31, 2018, five separate customers accounted for 91% of the Company’s total revenue. There was no revenue during the three months ended March 31, 2017.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Note 11 - Subsequent Events	On April 13, 2018, the Company accepted a common stock subscription for 37,037 shares of common stock at $0.27 cash per share resulting in a total subscription of $10,000 which was received in full. On May 11, 2018, the Company accepted a common stock subscription for 200,000 shares of common stock at $0.33 cash per share resulting in a total subscription of $66,000. Of this amount, $25,000 has been received with the remaining $41,000 as a subscription receivable. On May 21, 2018, the Company made convertible note repayments to repay the total outstanding principal and accrued interest on its outstanding convertible notes payable as discussed in Note 7 – Convertible Notes Payable Acquisition of Operating Assets On April 12, 2018, the Company entered into and closed the transactions contemplated by the definitive asset purchase agreement and plan of re-organization (the “ Asset Purchase Agreement 1922861 Ontario Inc. Stockholders In addition to the consideration on closing an additional 1,000,000 restricted common shares may potentially be issued upon meeting the following milestones: · An additional 500,000 shares will be issued upon the acquired base generating CAD $35,000 in monthly sales for DLT Resolution for 3 consecutive months with a 10% pre-tax profit. · And an additional 500,000 shares will be issued upon the acquired base generating CAD $500,000 in cumulated gross sales with a 10% pre-tax profit. The Company has allotted 24 months to achieve these milestones. There is full acceleration to allow for full vesting as quickly as the cumulative sales milestones are reached. Share issuances will be issued under reliance of appropriate exemptions from registration with the Securities & Exchange Commission and will contain substantial resale restrictions.

Significant Accounting Polici18

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2018
Significant Accounting Policies Policies
Use of Estimates	The preparation of financial statements, in conformity with generally accepted accounting principles in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Cash Equivalents	The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.
Income taxes	The Company accounts for income taxes under the asset and liability method, where deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. At March 31, 2018, there were no uncertain tax positions that require accrual.
Accounts Receivable	Accounts receivable balances are established for amounts owed to the Company from its customers from the sales of services and products. The Company closely monitors the collectability of outstanding accounts receivable and provide an allowance for doubtful accounts based on estimated collections of outstanding amounts. The Company had accounts receivable of $233,947 and $0 and an allowance for doubtful accounts of $0 and $0 as of March 31, 2018 and December 31, 2017, respectively.
Revenue Recognition	The Company follows ASC 606 of the FASB Accounting Standards Codification
Property and equipment	Property and equipment are stated at cost less accumulated depreciation. The Company provides for depreciation using the straight-line method over the estimated useful lives of the related assets, which range from three to five years. Maintenance and repair costs are expensed as they are incurred while renewals and improvements which extend the useful life of an asset are capitalized. At the time of retirement or disposal of property and equipment, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in the consolidated results of operations.
Intangible Assets	Intangible assets primarily consist of customer relationships, software, non-compete agreements and domain names The Company amortizes, to cost of revenue and operating expenses, definite-lived intangible assets on a straight-line basis over the life of the assets of five years.
Impairment of Long Lived Assets and Goodwill	The carrying value of long-lived assets is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted future cash flows expected to result from the use of the asset and its eventual disposition. The amount of the impairment loss to be recorded is calculated by the excess of the asset’s carrying value over its fair value. Fair value is generally determined using a discounted cash flow analysis. The Company tests goodwill for impairment annually as of December 31, or whenever events or changes in circumstances indicate that goodwill may be impaired. The Company initially assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, the Company determines it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then the Company compares the reporting unit’s carrying amount to its fair value. If the reporting unit’s carrying amount exceeds its fair value, an impairment charge is recorded based on that difference. There was no impairment of long-lived assets or goodwill during the periods presented.
Convertible debt	The Company records beneficial conversion features related to the issuance of convertible debts that have conversion features at fixed or adjustable rates that are less than the Company’s stock prices on the respective issuance dates. The beneficial conversion features for the convertible instruments are recognized and measured by allocating a portion of the proceeds as an increase in additional paid-in capital and as a reduction to the carrying amount of the convertible instruments equal to the intrinsic value of the conversion features based on the difference between the effective conversion rates and the Company’s stock prices on the issuance dates. The beneficial conversion features are accreted by recording additional non-cash interest expense over the expected life of the convertible notes.
Software Development Costs and Amortization	The Company capitalizes software development costs in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 985-20 (previously Statement of Financial Accounting Standards (“SFAS”) No. 86, “Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed”). Software development costs are capitalized after technological feasibility is established. Once the software products become available for general release to the public, the Company amortizes such costs over the related product’s estimated economic useful life to general and administrative expenses. Net capitalized software development costs (included in intangible assets) totaled $119,000 (acquired via issuance of $64,000 of Series B Preferred Stock and $55,000 in accounts payable) at March 31, 2018 and December 31, 2017, respectively. Related amortization expense, included in general and administrative expenses, totaled $9,917 and $0 for the three months ended March 31, 2018 and 2017, respectively.
Net loss per common share	Basic loss per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. Diluted earnings (loss) per share is computed by dividing net income, or loss, by the weighted average number of shares of common stock outstanding for the period. As of March 31, 2018, there was a convertible note outstanding that could convert to a total of 490,000 common shares and 3,675,000 common shares committed for issuance as part of the acquisition of AJD Data Services (see Note 12 – Acquisition of AJD Data Services
Derivative Liabilities	The Company records a debt discount related to the issuance of convertible debts that have conversion features at adjustable rates. The debt discount for the convertible instruments is recognized and measured by allocating a portion of the proceeds as an increase in additional paid-in capital and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion features. The debt discount will be accreted by recording additional non-cash gains and losses related to the change in fair market values of derivative liabilities over the life of the convertible notes.
Principals of Consolidation	The consolidated financial statements represent the results of DLT Resolution, Inc., its wholly owned subsidiary, DLT Resolution Corp. and its 80% owned subsidiary AJD Data Services (see Note 9 – Acquisition of AJD Data Services
Foreign Currency Translation	The functional currency of the Company’s subsidiaries in Canada is the Canadian Dollar. The subsidiaries’ assets and liabilities have been translated to U.S. dollars using the exchange rates in effect at the balance sheet dates. Statements of operations amounts have been translated using the annual average exchange rate for each period. Resulting gains or losses from translating foreign currency financial statements are recorded as other comprehensive income (loss). Foreign currency transaction gains and losses resulting from exchange rate fluctuations on transactions denominated in a currency other than the local currency are included in other income (expense). There was not foreign currency transaction gains or losses recognized during the periods presented.
Recently Issued Accounting Pronouncements	From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, we believe that the impact of recently issued standards that are not yet effective will not have a material impact on our financial position or results of operations upon adoption.

Related Party Notes Payable (Ta

Related Party Notes Payable (Tables)	3 Months Ended
	Mar. 31, 2018
Related Party Notes Payable Tables
Future maturities of related party notes payable	Year ended December 31, 2018 $ 81,500 2019 5,000 Total $ 86,500

Derivative Liability (Tables)

Derivative Liability (Tables)	3 Months Ended
	Mar. 31, 2018
Derivative Liability Tables
Summary of activity of derivative liability	Fair Value of Embedded Derivative Liabilities: Balance, December 31, 2017 $ 20,328 Change in fair market value 5,130 Balance, March 31, 2018 $ 25,458

Acquisition of A.J.D. Data Se21

Acquisition of A.J.D. Data Services (Tables)	3 Months Ended
	Mar. 31, 2018
Acquisition Of A.j.d. Data Services Tables
Sechudel of estimated fair values assets acquired and liabilities	ASSETS ACQUIRED Cash $ 302 Accounts receivable 152,489 Equipment 22,743 Customer relationships 207,364 Software 156,924 Non-compete agreement 173,738 Domain name 6,405 Goodwill 531,484 TOTAL ASSETS ACQUIRED $ 1,251,449 LIABILITIES ASSUMED Accounts payable 49,380 Related party payable 317 TOTAL LIABILITIES ASSUMED 49,697 Non-controlling interest (239,807 ) NET ASSETS ACQUIRED $ 961,945

Nature of Business (Details Nar

Nature of Business (Details Narrative)	3 Months Ended
	Mar. 31, 2018
Nature Of Business Details Narrative
State Country Name	Nevada
Date of Incorporation	Jan. 17, 2007

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	Mar. 31, 2018	Dec. 31, 2017
Going Concern Details Narrative
Accumulated deficit	$ (3,383,786)	$ (3,394,701)
Working capital deficit	$ 41,769

Significant Accounting Polici24

Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Net capitalized software development costs	$ 119,000
Series B preferred stock issued for intangible asset	64,000
Account payable entered into for intangible asset	55,000
General and administrative expenses	9,917	$ 0
Accounts receivable	233,947		$ 0
Allowance for doubtful accounts	$ 0		$ 0
Intangible asset, useful life	5 years
Convertible note [Member]
Shares reserved for future issuance	490,000		3,675,000

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Related Party Transactions Details Narrative
Proceeds from related party payables	$ 21,836
Repayments of related party advances	4,731
Related party payables	$ 61,643		$ 44,679

Stockholders' Equity (Details N

Stockholders' Equity (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017	Dec. 31, 2014
Treasury stock shares	3,815,000		3,815,000
Conversion of series A preferred shares to common shares	25,000
Exchange and rescission shares of common stock	25,000
Common shares issued	381,818
Dividends payable	$ 27,437		$ 26,697
Common stock, shares authorized	275,000,000		275,000,000
Common stock, shares issued	22,568,577		21,572,871
Common stock, shares outstanding	18,753,577		17,757,871
Common stock par value	$ 0.001		$ 0.001
Treasury stock	$ 5,300		$ 5,300
Proceeds from the sale of common stock	77,500
Related party note payable entered into for purchase of treasury stock	$ 200
Outstanding common shares of treasury stock	3,777,000
Notes payable, net of current portion	$ 5,000		$ 5,000
Common shares issued for acquisition of AJD Data Services, shares	525,000
Common shares issued for acquisition of AJD Data Services, value	$ 120,243
Common shares issued in exchange for preferred shares	25,000
Common shares, reverse stock splits			63,888
Former officer [Member]
Treasury stock				$ 100
Common Stock | Former officer [Member]
Treasury stock shares				380,000
Series A Convertible Preferred Stock
Convertible Preferred stock, shares issued	0		25,000
Convertible Preferred stock, shares outstanding	0		25,000
Common stock, shares authorized	5,000,000
Common stock par value	$ 0.10
Common shares issued in exchange for preferred shares	25,000

Related Party Notes Payable (De

Related Party Notes Payable (Details) - Notes Payable [Member]	Mar. 31, 2018USD ($)
Year ended December 31,
2,018	$ 81,500
2,019	5,000
Total	$ 86,500

Related Party Notes Payable (28

Related Party Notes Payable (Details Narrative) - USD ($)	1 Months Ended	12 Months Ended
	Jan. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Mar. 31, 2018	Dec. 31, 2017
Current notes payable, related party				$ 81,500	$ 81,500
Interest payable, related party				21,354	19,545
Notes payable, related party, net of current portion				$ 5,000	$ 5,000
Notes Payable [Member]
Consulting services amount			$ 350,000
Interest rate			9.00%
Debt due date			Nov. 19, 2016
Common Stock
Common shares issued in exchange for note payable principal, Shares	1,250,000
Common shares issued in exchange for note payable principal, Amount	$ 250,000
Series A Preferred Stock
Preferred stock share isssued in exchange of note payable		50,000
Preferred stock issued for repayment of accrued interest payable		$ 31,500
Preferred stock issued for repayment of note payable		$ 18,500

Convertible Notes Payable (Deta

Convertible Notes Payable (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	May 22, 2017	Mar. 31, 2018	Dec. 31, 2017
Accrued interest		$ 3,169	$ 3,048
Convertible notes payable		$ 4,900	$ 4,900
Convertible Notes Payable [Member]
Interest rate	10.00%
Debt instrument Convertible conversion description	The note bears interest at a rate of 10% per annum and can be convertible into the Company’s common shares 90 days after issuance, at the holder’s option, at the conversion rate equal to the lesser of a 50% discount from the last trade prior to conversion or $0.01
Convertible notes payable	$ 4,900

Derivative Liabilities (Details

Derivative Liabilities (Details) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Fair Value of Embedded Derivative Liabilities:
Balance, December 31, 2017	$ 20,328
Change in fair market value	5,130
Balance, March 31, 2018	$ 25,458

Derivative Liabilities (Detai31

Derivative Liabilities (Details Narrative) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	May 22, 2017	Mar. 31, 2018	Mar. 31, 2017	Dec. 31, 2017
Derivative liability		$ 25,458		$ 20,328
Convertible note payable		4,900		4,900
Excess fair market value of derivative liability charged to interest				448
Amortization expense				$ 4,900
Loss on change in fair market value of derivative liability		$ (5,130)
Risk free interest rate		1.93%
Expected lives		6 months
Expected volatility		387.00%
Convertible Notes Payable [Member]
Derivative liability	$ 5,348
Convertible note payable	$ 4,900
Interest rate	10.00%
Debt instrument convertible note conversion description	The note bears interest at a rate of 10% per annum and can be convertible into the Company’s common shares 90 days after issuance, at the holder’s option, at the conversion rate equal to the lesser of a 50% discount from the last trade prior to conversion or $0.01

Acquisition of A.J.D. Data Se32

Acquisition of A.J.D. Data Services (Details) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
ASSETS ACQUIRED
Cash	$ 45,966	$ 8,609
Goodwill	514,437
LIABILITIES ASSUMED
Accounts payable	59,043	26,415
Related party payables	61,643	$ 44,679
AJD [Member]
ASSETS ACQUIRED
Cash	302
Accounts receivable	152,489
Equipment	22,743
Customer relationships	207,364
Software	156,924
Non-compete agreement	173,738
Domain name	6,405
Goodwill	531,484
TOTAL ASSETS ACQUIRED	1,251,449
LIABILITIES ASSUMED
Accounts payable	49,380
Related party payables	317
TOTAL LIABILITIES ASSUMED	49,697
Non-controlling interest	(239,807)
NET ASSETS ACQUIRED	$ 961,945

Acquisition of A.J.D. Data Se33

Acquisition of A.J.D. Data Services (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jan. 21, 2018	Dec. 31, 2017
Common stock share issued	22,568,577			21,572,871
Common stock value	$ 22,569			$ 21,573
Other long term liability	$ 841,702
Intangible assets useful life	5 years
Total revenues	$ 148,388
Purchase Agreement [Member]
Common stock share issued	525,000
Common stock value	$ 120,243
Additional share issued of common stock	3,675,000
Common stock fair value	$ 841,702
Other long term liability	$ 841,702
Intangible assets useful life	5 years
Stock Purchase Agreement [Member]
Business acquisition, shares to be acquired under agreement			80
Business acquisition, ownership interest to be acquired under agreement			80.00%
AJD [Member]
Non-controlling interest	$ (239,807)
Total revenues	$ 143,919
Conditional issuance of common stock shares reserve for future issuance	3,675,000
AJD [Member] | Condition Two [Member]
Conditional issuance of common stock shares reserve for future issuance	525,000
Gross sales	$ 1,500,000
Pre tax earnings	$ 100,000
Restricted common shares exchange description	525,000 Shares upon A.J.D Data Services reaching $1,500,000 in cumulated gross sales with $100,000 in pre-tax earnings
AJD [Member] | Condition [Member]
Conditional issuance of common stock shares reserve for future issuance	1,050,000
Gross sales	$ 500,000
Restricted common shares exchange description	1,050,000 Shares upon A.J.D Data Services reaching $500,000 in gross sales
AJD [Member] | Condition One [Member]
Conditional issuance of common stock shares reserve for future issuance	1,050,000
Gross sales	$ 1,000,000
Restricted common shares exchange description	1,050,000 Shares upon A.J.D Data Services reaching $1,000,000 in cumulated gross sales
AJD [Member] | Condition Three [Member]
Conditional issuance of common stock shares reserve for future issuance	525,000
Gross sales	$ 2,000,000
Pre tax earnings	$ 150,000
Restricted common shares exchange description	525,000 Shares upon A.J.D Data Services reaching $2,000,000 in cumulated gross sales with $150,000 in pre-tax earnings
AJD [Member] | Condition Four [Member]
Conditional issuance of common stock shares reserve for future issuance	525,000
Gross sales	$ 2,500,000
Pre tax earnings	$ 200,000
Restricted common shares exchange description	525,000 Shares upon A.J.D Data Services reaching $2,500,000 in cumulated gross sales with $200,000 in pre-tax earnings

Concentrations of Revenue (Deta

Concentrations of Revenue (Details Narrative)	3 Months Ended
	Mar. 31, 2018
Customers [Member]
Concentrations revenue percentages	91.00%
Customers One [Member]
Concentrations revenue percentages	91.00%
Customers Two [Member]
Concentrations revenue percentages	91.00%
Customers Three [Member]
Concentrations revenue percentages	91.00%
Customers Four [Member]
Concentrations revenue percentages	91.00%

Subsequent Events (Details Narr

Subsequent Events (Details Narrative) - Subsequent Event [Member]	Apr. 12, 2018CAD ($)shares	May 11, 2018USD ($)$ / sharesshares	Apr. 13, 2018USD ($)$ / sharesshares
Common stock shares subscription | shares		200,000	37,037
Common stock value subscription		$ 66,000	$ 10,000
Common stock subscription per share | $ / shares		$ 0.33	$ 0.27
Common stock subscription received		$ 25,000
Common stock subscription Receivable		$ 41,000
Conditional issuance of common stock shares reserve for future issuance, shares | shares	1,000,000
Business acquisition description	In addition to the consideration on closing an additional 1,000,000 restricted common shares may potentially be issued upon meeting the following milestones: · An additional 500,000 shares will be issued upon the acquired base generating CAD $35,000 in monthly sales for DLT Resolution for 3 consecutive months with a 10% pre-tax profit. · And an additional 500,000 shares will be issued upon the acquired base generating CAD $500,000 in cumulated gross sales with a 10% pre-tax profit.
Asset Purchase Agreement [Member]
Restricted common shares issued | shares	500,000
Monthly sales	$ 19,200
Acquisition One [Member]
Conditional issuance of common stock shares reserve for future issuance, shares | shares	500,000
Gross sales	$ 500,000
Pre-tax profit, percentages	10.00%
Acquisition [Member]
Conditional issuance of common stock shares reserve for future issuance, shares | shares	500,000
Monthly sales	$ 35,000
Pre-tax profit, percentages	10.00%