Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2016shares | |
Document and Entity Information: | |
Entity Registrant Name | Bollente Companies Inc. |
Document Type | 10-Q |
Document Period End Date | Jun. 30, 2016 |
Amendment Flag | false |
Entity Central Index Key | 1,429,393 |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 21,478,186 |
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 | Q2 |
Trading Symbol | bolc |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 1,790 | $ 3,618 |
Accounts receivable | 38,145 | 72,533 |
Inventory | 93,633 | 222,537 |
Prepaid expenses | 191,056 | 205,886 |
Prepaid stock compensation | 110,833 | 306,217 |
Total current assets | 435,457 | 810,791 |
Other assets: | ||
Fixed assets, net | 3,682 | 5,885 |
Security deposits | 1,500 | 1,500 |
Trademarks | 10,464 | 8,083 |
Prepaid stock compensation - long term | 55,556 | |
Software | 8,333 | 10,000 |
Website | 11,394 | 21,160 |
Total other assets | 90,929 | 46,628 |
Total assets | 526,386 | 857,419 |
Current liabilities: | ||
Accounts payable | 544,430 | 620,910 |
Credit cards | 23,429 | 15,971 |
Customer deposits | 600 | 600 |
Accrued salaries | 17,886 | |
Accrued salaries - related party | 58,779 | 26,040 |
Accrued payroll taxes | 14,738 | 11,984 |
Note payable - related party | 230,600 | 600 |
Note payable - related party, net | 180,000 | 195,000 |
Line of credit - related party | 17,000 | 16,000 |
Accrued interest payable | 4 | 4 |
Accrued interest payable - related party | 6,334 | 4,316 |
Total current liabilities | 1,093,800 | 891,425 |
Non-current liabilities: | ||
Note payable - related party | 233,000 | |
Convertible notes payable - related party, net | 98,695 | |
Total non-current liabilities | 98,695 | 233,000 |
Total liabilities | 1,192,495 | 1,124,425 |
Stockholders' equity (deficit) | ||
Preferred stock value | ||
Common stock value | 21,478 | 19,351 |
Additional paid-in capital | 18,951,514 | 16,763,822 |
Subscriptions payable | 10,000 | 750,000 |
Accumulated deficit | (19,649,101) | (17,800,179) |
Total stockholders' equity (deficit) | (666,109) | (267,006) |
Total liabilities and stockholders' equity (deficit) | $ 526,386 | $ 857,419 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Dec. 31, 2015 |
Balance Sheet | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 21,478,186 | 19,350,182 |
Common stock, shares outstanding | 21,478,186 | 19,350,182 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement | ||||
Revenue | $ 66,278 | $ 51,803 | $ 181,802 | $ 112,707 |
Cost of sales | 52,332 | 84,532 | 151,475 | 163,465 |
Gross profit | 13,946 | (32,729) | 30,327 | (50,758) |
Operating expenses: | ||||
General and administrative | 390,466 | 417,061 | 835,820 | 734,661 |
Executive compensation | 17,250 | 52,650 | 66,000 | 161,400 |
Research and development | 1,618 | 147,037 | 2,549 | 271,795 |
Professional fees | 388,628 | 708,887 | 954,734 | 1,152,692 |
Total operating expenses | 797,962 | 1,325,635 | 1,859,103 | 2,320,548 |
Other income (expenses): | ||||
Other income | 11,993 | 2,047 | 12,186 | 2,047 |
Interest expense - related party | 15,779 | 6,181 | 31,282 | 8,147 |
Interest expense | 284 | 121 | 1,050 | 121 |
Other expenses | 9 | 9 | ||
Total other income (expenses) | (4,070) | (4,264) | (20,146) | (6,230) |
Net income (loss) | $ (788,086) | $ (1,362,628) | $ (1,848,922) | $ (2,377,536) |
Net income (loss) per share - basic | $ (0.04) | $ (0.08) | $ (0.09) | $ (0.14) |
Weighted average number of common shares outstanding - basic | 20,832,691 | 17,046,911 | 20,529,339 | 17,685,036 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities | ||
Net income (loss) | $ (1,848,922) | $ (2,377,536) |
Adjustments to reconcile net loss to net cash used by operating activities: | ||
Shares issued for services | 688,000 | 517,000 |
Depreciation | 2,203 | 2,009 |
Shares issued for employment agreement | 380,000 | 160,000 |
Shares issued for prepaid share compensation | 139,828 | 213,150 |
Vesting of warrants issued with convertible notes payable | 515 | |
Amortization of website costs and software | 11,433 | 9,766 |
Amortization of debt discount | 5,000 | |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | 34,388 | 13,602 |
(Increase) decrease in inventory | 128,905 | 25,316 |
(Increase) decrease in prepaid expenses | 14,830 | 13,945 |
Increase (decrease) in accounts payable | (77,455) | (7,721) |
Increase (decrease) in accounts payable - related party | 973 | (12,524) |
Increase (decrease) in credit card | 7,458 | 6,221 |
Increase (decrease) in accrued salaries | 17,886 | |
Increase (decrease) in accrued salaries - related party | 32,739 | 5,803 |
Increase (decrease) in accrued payroll taxes | 2,754 | (521) |
Increase (decrease) in accrued interest payable - related party | 2,018 | 88 |
Net cash provided (used) by operating activities | (457,447) | (1,431,402) |
Cash flows from investing activities | ||
Purchase of trademarks | 2,381 | 3,250 |
Net cash provided (used) by investing activities | (2,381) | (3,250) |
Cash flows from financing activities | ||
Proceeds from convertible notes payable - related party | 110,000 | |
Proceeds from notes payable | 200,000 | |
Proceeds from notes payable - related party | 75,000 | 233,000 |
Repayments of notes payable - related party | 78,000 | 34,200 |
Proceeds from lines of credit - related party | 24,000 | |
Repayments of lines of credit - related party | 23,000 | |
Proceeds from sale of common stock | 300,000 | 1,232,250 |
Proceeds from royalty payments | 50,000 | |
Net cash provided (used) by financing activities | 458,000 | 1,631,050 |
Net increase (decrease) in cash | (1,828) | 196,398 |
Cash - beginning of the period | 3,618 | 40,446 |
Cash - ending of the period | 1,790 | 236,844 |
Supplemental disclosures | ||
Interest paid | 23,750 | |
Non-cash investing and financing activities | ||
Shares issued for prepaid stock compensation | $ 100,000 | $ 164,600 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Summary of Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for a fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the years ended December 31, 2015 and 2014 and notes thereto included in the Companys 10-K annual report. The Company follows the same accounting policies in the preparation of interim reports. Principles of consolidation The consolidated financial statements include the accounts of Bollente Companies, Inc. and its wholly owned subsidiaries. On May 16, 2010, the Company acquired 100% of the outstanding stock of Bollente, Inc. On the date of acquisition, Bollente, Inc. was 2.78% owned and controlled 100% by Robertson J. Orr, a majority shareholder and officer and director of Bollente Companies, Inc. and the acquisition was accounted for by means of a pooling of the entities from the date of inception of Bollente Companies, Inc. on March 7, 2008 because the entities were under common control. On August 13, 2015, the Company formed a wholly owned subsidiary, Bollente International, Inc. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates. Cash and cash equivalents For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value. Website The Company capitalizes the costs associated with the development of the Companys website pursuant to ASC Topic 350. Other costs related to the maintenance of the website are expensed as incurred. Amortization is provided over the estimated useful lives of 3 years using the straight-line method for financial statement purposes. The Company plans to commence amortization upon completion and release of the Companys fully operational website. Stock-based compensation The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50. Earnings per share The Company follows ASC Topic 260 to account for the earnings per share. Basic earning per common share (EPS) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earning per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. Inventory Inventories are stated at the lower of cost (average cost) or market (net realizable value). Revenue recognition The Company records revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. The Company records revenue from the sale of product upon shipment or delivery of the products to the customer. The Company also records the shipping income when the products are sent to the customer. Fair value of financial instruments Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2014. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand. Level 1: The preferred inputs to valuation efforts are quoted prices in active markets for identical assets or liabilities, with the caveat that the reporting entity must have access to that market. Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets. Level 2: FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three situations. Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as unobservable, and limits their use by saying they shall be used to measure fair value to the extent that observable inputs are not available. This category allows for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Earlier in the standard, FASB explains that observable inputs are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants. |
Going Concern Disclosure
Going Concern Disclosure | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Going Concern Disclosure | NOTE 2 - GOING CONCERN The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. As a result, the Company incurred accumulated net losses for the six months ended June 30, 2016 of ($19,649,101). In addition, the Companys development activities since inception have been financially sustained through debt and equity financing. The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. 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 result from this uncertainty. |
Inventory Disclosure
Inventory Disclosure | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Inventory Disclosure | NOTE 3 - INVENTORY Inventories consist of the following at: June 30, 2016 December 31, 2015 Raw materials $ 42,061 $ 42,061 Finished goods 51,572 180,476 Total $ 93,633 $ 222,537 |
Website Disclosure
Website Disclosure | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Website Disclosure | NOTE 4 - WEBSITE Website consists of the following at: June 30, 2016 December 31, 2015 Website $ 58,598 $ 58,598 Less: Accumulated amortization (47,204) (37,438) Website, net $ 11,394 $ 21,160 Amortization expense for the six months ended June 30, 2016 and 2015 was $11,433 and $9,766, respectively. |
Notes Payable - Related Party a
Notes Payable - Related Party and Convertible Note Payable - Related Party | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Notes Payable - Related Party and Convertible Note Payable - Related Party | NOTE 5 - NOTES PAYABLE - RELATED PARTY AND CONVERTIBLE NOTE PAYABLE - RELATED PARTY Notes payable consist of the following at: June 30, 2016 December 31, 2015 Note payable to an officer, director and shareholder, unsecured, 0% interest, due upon demand $ 600 $ 600 Note payable from a shareholder, secured, 12% interest, due May 2017 72,000 -- Note payable from a shareholder, secured, 12% interest, due March 2017 125,000 -- Note payable, to an officer, director and shareholder, secured, 5% interest, due April 2017 33,000 -- Note payable from a shareholder, secured, 12% interest, due June 2017 180,000 195,000 Notes Payable - Current $ 410,600 $ 195,600 June 30, 2016 December 31, 2015 Note payable from a shareholder, secured, 12% interest, due March 2017 $ -- $ 200,000 Note payable, to an officer, director and shareholder, secured, 5% interest, due April 2017 -- 33,000 Notes payable - Long Term $ -- $ 233,000 Convertible notes payable, net of debt discount consist of the following: June 30, 2016 December 31, 2015 Note payable from a shareholder, secured, 12% interest, due May 2018 $ 8,997 $ -- Note payable from a shareholder, secured, 12% interest, due May 2018 44,827 -- Note payable from a shareholder, secured, 12% interest, due June 2018 44,871 -- Convertible notes payable - Related Party - Long Term $ 98,695 $ -- Interest expense for the six months ended June 30, 2016 and 2015 was $32,332 and $8,268, respectively. Issuance of Warrants As of June 30, 2016, we issued warrants to purchase 110,000 shares of the Companys common stock at an exercise price of $1.50 per share to three accredited investors in connection with 12% secured convertible promissory note financing. The warrants are exercisable at any time until five (5) years after the closing date. On August 2, 2016, the Company reduced the warrant exercise price of the warrant holders warrants from $1.50 to $1.00 per share. The warrants were issued pursuant to the exemption from registration afforded by Section 4(2) of the Securities Act of 1933 as a transaction by an issuer not involving any public offering. |
Royalty Payments Disclosure
Royalty Payments Disclosure | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Royalty Payments Disclosure | NOTE 6 - ROYALTY PAYMENTS The Company has agreed to allow accredited investors the ability to receive a royalty on products sold in an effort to fund its distribution and marketing advances internationally by purchasing units. Each unit represents 0.625% royalty interest in the Gross Margin of product sold by Bollente International, Inc., costing $25,000 per unit. As of June 30, 2016, twenty-six units have been sold totaling $675,000. This amount is included in additional paid in capital since there is no obligation to repay the funds. |
Stockholders' Equity Disclosure
Stockholders' Equity Disclosure | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Stockholders' Equity Disclosure | NOTE 7 - STOCKHOLDERS EQUITY The Company is authorized to issue 10,000,000 shares of it $0.001 par value preferred stock and 100,000,000 shares of its $0.001 par value common stock. On June 29, 2016, the Company issued 285,000 shares of common stock for cash received of $285,000, of which $140,000 of the funds were received as of March 31, 2016 and recorded as stock payable. On June 29, 2016, the Company issued 30,000 shares of common stock of $30,000 earned by the President of the Company as part of their employment agreement, of which $30,000 was expensed as of March 31, 2016 and recorded as stock payable. On June 29, 2016, the Company issued 20,000 shares of common stock for related to a note payable totaling $20,000. On June 29, 2016, the Company issued 150,000 shares of common stock as a bonus to two consultants totaling $150,000. On June 29, 2016, the Company issued 100,000 shares of common stock owed to an employee of the Company as a bonus totaling $100,000. |
Prepaid Stock Compensation Disc
Prepaid Stock Compensation Disclosure | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Prepaid Stock Compensation Disclosure | NOTE 8 - PREPAID STOCK COMPENSATION During the six month ended June 30, 2016, the Company issued a total of 100,000 shares of common stock as part of a consulting agreement totaling $100,000. The value of the shares was recorded as prepaid expense and is being amortized over three years which is the related service period of the agreement. For the six months ended June 30, 2016, the Company expensed $339,828 as professional fees with a remaining prepaid stock compensation amount totaling $166,389 at June 30, 2016. |
Agreements Disclosure
Agreements Disclosure | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Agreements Disclosure | NOTE 9 - AGREEMENTS Lease agreement In January 2015, the Company executed a sublease agreement with Perigon Companies, LLC, a related party. The lease term is one year at a rate of $4,000 per month with an option to continue on a month to month basis. The Company paid a refundable security deposit of $1,500. In January 2015, the Company executed a sublease agreement with Templar Asset Group, LLC, a related party. The lease term is one year at a rate of $2,800 per month with an option to continue on a month to month basis. The Company was not required to pay a security deposit. Rent expense for the six months ended June 30, 2016 and 2015 was $40,800 and $45,077, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2016 | |
Notes | |
Subsequent Events | NOTE 10 - SUBSEQUENT EVENTS In August 2016, the Company sold 25,000 shares of common stock to an investor for cash totaling $25,000 and is recorded to stock payable. As of the date of this filing, the shares have not been issued and are recorded to stock payable. On August 2, 2016, the Company executed a convertible promissory note with a related party for up to $1,000,000. The secured note bears interest at 12% per annum and is due in 120 days after delivery of payment or August 1, 2018. This note is convertible at $0.25 per share and can be converted on or before the maturity date. As of the date of this filing, funds have not yet been received. Issuance of Warrants On August 2, 2016, we issued warrants to purchase 1,000,000 shares of the Companys common stock at an exercise price of $1.00 per share to one accredited investor in connection with loan agreement and security agreement dated August 2, 2016. The warrants are exercisable in whole or in part at any time or from time to time on or after August 2, 2016 and until August 1, 2021. The warrants were issued pursuant to the exemption from registration afforded by Section 4(2) of the Securities Act of 1933 as a transaction by an issuer not involving any public offering. |
Summary of Significant Accoun16
Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Basis of Presentation | Basis of presentation The interim financial statements included herein, presented in accordance with United States generally accepted accounting principles and stated in US dollars, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management, are necessary for a fair presentation of the information contained therein. It is suggested that these interim financial statements be read in conjunction with the financial statements of the Company for the years ended December 31, 2015 and 2014 and notes thereto included in the Companys 10-K annual report. The Company follows the same accounting policies in the preparation of interim reports. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies: Principles of Consolidation (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Principles of Consolidation | Principles of consolidation The consolidated financial statements include the accounts of Bollente Companies, Inc. and its wholly owned subsidiaries. On May 16, 2010, the Company acquired 100% of the outstanding stock of Bollente, Inc. On the date of acquisition, Bollente, Inc. was 2.78% owned and controlled 100% by Robertson J. Orr, a majority shareholder and officer and director of Bollente Companies, Inc. and the acquisition was accounted for by means of a pooling of the entities from the date of inception of Bollente Companies, Inc. on March 7, 2008 because the entities were under common control. On August 13, 2015, the Company formed a wholly owned subsidiary, Bollente International, Inc. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies: Use of Estimates (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Use of Estimates | Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies: Cash and Cash Equivalents Policy (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Cash and Cash Equivalents Policy | Cash and cash equivalents For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies: Website Policy (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Website Policy | Website The Company capitalizes the costs associated with the development of the Companys website pursuant to ASC Topic 350. Other costs related to the maintenance of the website are expensed as incurred. Amortization is provided over the estimated useful lives of 3 years using the straight-line method for financial statement purposes. The Company plans to commence amortization upon completion and release of the Companys fully operational website. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies: Stock-based Compensation Policy (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Stock-based Compensation Policy | Stock-based compensation The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award. The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies: Earnings Per Share Policy (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Earnings Per Share Policy | Earnings per share The Company follows ASC Topic 260 to account for the earnings per share. Basic earning per common share (EPS) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earning per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation. |
Summary of Significant Accoun23
Summary of Significant Accounting Policies: Inventory Policy (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Inventory Policy | Inventory Inventories are stated at the lower of cost (average cost) or market (net realizable value). |
Summary of Significant Accoun24
Summary of Significant Accounting Policies: Revenue Recognition Policy (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Revenue Recognition Policy | Revenue recognition The Company records revenue when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is probable. The Company records revenue from the sale of product upon shipment or delivery of the products to the customer. The Company also records the shipping income when the products are sent to the customer. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies: Fair Value of Financial Instruments Policy (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
Policies | |
Fair Value of Financial Instruments Policy | Fair value of financial instruments Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of December 31, 2014. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand. Level 1: The preferred inputs to valuation efforts are quoted prices in active markets for identical assets or liabilities, with the caveat that the reporting entity must have access to that market. Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets. Level 2: FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three situations. Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as unobservable, and limits their use by saying they shall be used to measure fair value to the extent that observable inputs are not available. This category allows for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Earlier in the standard, FASB explains that observable inputs are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants. |
Inventory Disclosure_ Schedule
Inventory Disclosure: Schedule of Inventory (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Inventory | June 30, 2016 December 31, 2015 Raw materials $ 42,061 $ 42,061 Finished goods 51,572 180,476 Total $ 93,633 $ 222,537 |
Website Disclosure_ Schedule of
Website Disclosure: Schedule of Website Assets (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Website Assets | June 30, 2016 December 31, 2015 Website $ 58,598 $ 58,598 Less: Accumulated amortization (47,204) (37,438) Website, net $ 11,394 $ 21,160 |
Notes Payable - Related Party28
Notes Payable - Related Party and Convertible Note Payable - Related Party: Schedule of Notes Payable, Current (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Notes Payable, Current | June 30, 2016 December 31, 2015 Note payable to an officer, director and shareholder, unsecured, 0% interest, due upon demand $ 600 $ 600 Note payable from a shareholder, secured, 12% interest, due May 2017 72,000 -- Note payable from a shareholder, secured, 12% interest, due March 2017 125,000 -- Note payable, to an officer, director and shareholder, secured, 5% interest, due April 2017 33,000 -- Note payable from a shareholder, secured, 12% interest, due June 2017 180,000 195,000 Notes Payable - Current $ 410,600 $ 195,600 |
Notes Payable - Related Party29
Notes Payable - Related Party and Convertible Note Payable - Related Party: Schedule of Notes payable, Long-Term (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Notes payable, Long-Term | June 30, 2016 December 31, 2015 Note payable from a shareholder, secured, 12% interest, due March 2017 $ -- $ 200,000 Note payable, to an officer, director and shareholder, secured, 5% interest, due April 2017 -- 33,000 Notes payable - Long Term $ -- $ 233,000 |
Notes Payable - Related Party30
Notes Payable - Related Party and Convertible Note Payable - Related Party: Schedule of Convertible Notes Payable (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Tables/Schedules | |
Schedule of Convertible Notes Payable | June 30, 2016 December 31, 2015 Note payable from a shareholder, secured, 12% interest, due May 2018 $ 8,997 $ -- Note payable from a shareholder, secured, 12% interest, due May 2018 44,827 -- Note payable from a shareholder, secured, 12% interest, due June 2018 44,871 -- Convertible notes payable - Related Party - Long Term $ 98,695 $ -- |
Summary of Significant Accoun31
Summary of Significant Accounting Policies: Principles of Consolidation (Details) | May 16, 2010 |
Details | |
Acquisition of outstanding stock of Bellente, Inc., acquired percent of stock | 100.00% |
Summary of Significant Accoun32
Summary of Significant Accounting Policies: Website Policy (Details) | 6 Months Ended |
Jun. 30, 2016 | |
Details | |
Estimated useful lives of Website using the straight-line method | 3 years |
Going Concern Disclosure (Detai
Going Concern Disclosure (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Details | ||
Accumulated deficit | $ 19,649,101 | $ 17,800,179 |
Inventory Disclosure_ Schedul34
Inventory Disclosure: Schedule of Inventory (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Inventory | $ 93,633 | $ 222,537 |
Raw Materials | ||
Inventory | 42,061 | 42,061 |
Finished goods | ||
Inventory | $ 51,572 | $ 180,476 |
Website Disclosure_ Schedule 35
Website Disclosure: Schedule of Website Assets (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Details | ||
Website, gross | $ 58,598 | $ 58,598 |
(Less) accumulated amortization of website | (47,204) | (37,438) |
Website, net | $ 11,394 | $ 21,160 |
Website Disclosure (Details)
Website Disclosure (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Details | ||
Amortization of website costs and software | $ 11,433 | $ 9,766 |
Notes Payable - Related Party37
Notes Payable - Related Party and Convertible Note Payable - Related Party: Schedule of Notes Payable, Current (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Notes payable - current | $ 410,600 | $ 195,600 |
Note payable to an officer, director and shareholder, unsecured | ||
Notes payable - current | 600 | 600 |
Note payable from a shareholder, secured (due May 2017) | ||
Notes payable - current | 72,000 | |
Note payable from a shareholder, secured (due March 2017) | ||
Notes payable - current | 125,000 | |
Note payable, to an officer, director and shareholder, secured (due April 2017) | ||
Notes payable - current | 33,000 | |
Note payable from a shareholder, secured (due June 2017) | ||
Notes payable - current | $ 180,000 | $ 195,000 |
Notes Payable - Related Party38
Notes Payable - Related Party and Convertible Note Payable - Related Party: Schedule of Notes payable, Long-Term (Details) | Dec. 31, 2015USD ($) |
Notes payable - Long Term | $ 233,000 |
Note payable from a shareholder, non-current, secured (due March 2017) | |
Notes payable - Long Term | 200,000 |
Note payable, to an officer, director and shareholder, non-current, secured (due April 2017) | |
Notes payable - Long Term | $ 33,000 |
Notes Payable - Related Party39
Notes Payable - Related Party and Convertible Note Payable - Related Party: Schedule of Convertible Notes Payable (Details) | Jun. 30, 2016USD ($) |
Convertible notes payable - Long Term | $ 98,695 |
Note payable from a shareholder, secured (due May 2018) | |
Convertible notes payable - Long Term | 8,997 |
Note payable from a shareholder(2), secured (due May 2018) | |
Convertible notes payable - Long Term | 44,827 |
Note payable from a shareholder, secured (due June 2018) | |
Convertible notes payable - Long Term | $ 44,871 |
Notes Payable - Related Party40
Notes Payable - Related Party and Convertible Note Payable - Related Party (Details) - USD ($) | 1 Months Ended | 6 Months Ended | |
Aug. 02, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | |
Details | |||
Interest expense, total | $ 32,332 | $ 8,268 | |
Warrants issued, shares | 1,000,000 | 110,000 |
Royalty Payments Disclosure (De
Royalty Payments Disclosure (Details) | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Details | |
Royalty units sold, recorded as additional paid in capital | $ 675,000 |
Stockholders' Equity Disclosu42
Stockholders' Equity Disclosure (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Preferred stock authorized | 10,000,000 | 10,000,000 |
Par value of preferred stock | $ 0.001 | $ 0.001 |
Common stock authorized | 100,000,000 | 100,000,000 |
Par value of common stock | $ 0.001 | $ 0.001 |
Common stock for cash | ||
Common stock issued for cash | 285,000 | |
Proceeds from issuance of common stock | $ 285,000 | |
President, per employment agreement | ||
Common stock issued for services | 30,000 | |
Common stock for note payable | ||
Common stock issued for debt | 20,000 | |
Value of stock issued for debt | $ 20,000 | |
Bonus for consultants | ||
Common stock issued for services | 150,000 | |
Bonus for employees | ||
Common stock issued for services | 100,000 | |
Value of stock issued for services | $ 100,000 |
Prepaid Stock Compensation Di43
Prepaid Stock Compensation Disclosure (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Shares issued for prepaid stock compensation | $ 100,000 | $ 164,600 | ||
Professional fees | $ 388,628 | $ 708,887 | 954,734 | $ 1,152,692 |
Prepaid Compensation | ||||
Professional fees | $ 339,828 |
Agreements Disclosure (Details)
Agreements Disclosure (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | |
Security deposit paid | $ 1,500 | $ 1,500 | |
Rent expense | $ 40,800 | $ 45,077 | |
SubleaseAgreementWithPerigonCompaniesLlcMember | |||
Monthly lease payments due | 4,000 | ||
Security deposit paid | 1,500 | ||
SubleaseAgreementWithTemplarAssetGroupLlcMember | |||
Monthly lease payments due | $ 2,800 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 6 Months Ended |
Aug. 02, 2016 | Aug. 21, 2016 | Jun. 30, 2016 | |
Details | |||
Common stock sold for cash, not yet issued | 25,000 | ||
Convertible promissory note issued | $ 1,000,000 | $ 110,000 | |
Warrants issued, shares | 1,000,000 | 110,000 |