OWC Pharmaceutical Research (OWCP) 10-K/A 16 Aug 16 2015 FY Annual report (amended) Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2015
Document and Entity Information:
Entity Registrant Name	OWC Pharmaceutical Research Corp.
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Trading Symbol	owcp
Amendment Flag	false
Entity Central Index Key	1,431,934
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	81,460,875
Entity Public Float		$ 2,430,069
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY

OWC Pharmaceutical Research Cor

OWC Pharmaceutical Research Corp. - Consolidated Balance Sheets		Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Current Assets:
Cash		$ 357,161	$ 1,469,267
Other receivables		11,797	24,091
Prepaid expenses		38,591	0
Total current assets		407,549	1,493,358
Property and equipment, net		22,899	29,454
Total assets		430,448	1,522,812
Current Liabilities:
Accounts payable - trade		28,125	16,523
Accrued expenses		$ 24,607	$ 43,643
Advances and accounts payable to related parties		1,820	138
Customer deposit		$ 50,000	$ 0
Current portion of convertible notes payable net of discount		3,074	0
Total current liabilities		107,626	60,304
Total liabilities		107,626	60,304
Stockholders' equity:
Preferred stock	[1]	0	0
Common stock	[2]	815	784
Additional paid-in capital		8,533,525	8,000,847
Common stock subscriptions receivable		(651,730)	(651,730)
Accumulated deficit		(7,548,866)	(5,893,878)
Accumulated other comprehensive income		(10,922)	6,485
Total stockholders' equity (deficit)		322,822	1,462,508
Total liabilities and stockholders' equity		$ 430,448	$ 1,522,812
[1]	$0.0001 par value. Authorized 20,000,000 shares: none issued and outstanding at December 31, 2015 and 2014, respectively.
[2]	$0.0001 par value. Authorized 500,000,000 shares: 81,460,875 and 78,429,241 shares issued and outstanding at December 31, 2015 and 2014, respectively.

OWC Pharmaceutical Research Co3

OWC Pharmaceutical Research Corp. - Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Consolidated Statements of Operations
Revenues	$ 0	$ 0
General and administrative	1,380,029	4,873,223
Research and development	271,394	160,325
Loss from operations	(1,651,423)	(5,033,548)
Other income (expenses)
Interest expense	(491)	(3,185)
Interest income	0	94
Amortization of debt discount	(3,074)	(34,034)
Total costs and expenses	(3,565)	(37,125)
Loss loss before income taxes	(1,654,988)	(5,070,673)
Net loss	$ (1,654,988)	$ (5,070,673)
Basic and diluted per share amounts:
Basic and diluted net loss	$ (0.02)	$ (0.10)
Weighted average shares outstanding (basic and diluted)	80,591,237	52,209,962

OWC Pharmaceutical Research Co4

OWC Pharmaceutical Research Corp. - Consolidated Statements Comprehensive Loss	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Consolidated Statements Comprehensive Loss [Table]
Net loss	(1,654,988)	(5,070,673)
Other comprehensive income (loss) adjustments, net of tax:
Foreign currency translation adjustments	(17,407)	6,485
Total other comprehensive income (loss) adjustments, net of tax	(17,407)	6,485
Total comprehensive loss, net of tax	$ (1,672,395)	$ (5,064,188)

OWC Pharmaceutical Research Co5

OWC Pharmaceutical Research Corp. - Consolidated Statements of Changes in Stockholders' Equity (Deficit)	Common Stock, Share	Common Stock, Amount	Additional Paid-In Capital	Subscription Receivable	Accumulated Deficit	Accumulated Other Comprehensive Loss	Total Shareholders' Equity (Deficit)
Balance at Dec. 31, 2013	21,641,450	217	697,278		(823,205)		(125,710)
Warrants issued for services			3,857,136				3,857,136
Stock issued upon conversion of debt and accrued interest	13,263,300	133	132,509				132,642
Forgiveness of indebteness to former related party			28,436				28,436
Stock issued for services	6,995,416	70	567,647				567,716
Stock issued for cash
Stock issued for cash at $0.005 per share	4,700,000	47	23,453				23,500
Stock issued for cash at $0.05 per share	13,034,585	130	651,600	(651,730)
Stock issued for cash at $0.09 per share	12,936,662	129	1,164,171				1,164,300
Stock issued for cash at $0.15 per share	5,857,828	59	878,617				878,676
Stock issued for cash at $0.12 per share
Beneficial conversion feature
Foreign currency translation adjustments						6,485	6,485
Net loss year end					(5,070,673)		(5,070,673)
Balance at Dec. 31, 2014	78,429,241	784	8,000,847	(651,730)	(5,893,878)	6,485	1,462,508
Warrants issued for services			10,839				10,839
Stock issued upon conversion of debt and accrued interest
Forgiveness of indebteness to former related party
Stock issued for services	1,614,935	17	360,353				360,370
Stock issued for cash
Stock issued for cash at $0.005 per share
Stock issued for cash at $0.05 per share	800,000	8	39,992				40,000
Stock issued for cash at $0.09 per share
Stock issued for cash at $0.15 per share	333,333	3	49,997				50,000
Stock issued for cash at $0.12 per share	283,334	3	33,997				34,000
Beneficial conversion feature			37,500				37,500
Foreign currency translation adjustments						(17,407)	(17,407)
Net loss year end					(1,654,988)		(1,654,988)
Balance at Dec. 31, 2015	81,460,843	815	8,533,525	(651,730)	(7,548,866)	(10,922)	322,822

OWC Pharmaceutical Research Co6

OWC Pharmaceutical Research Corp. - Consolidated Statements of Cash Flows	12 Months Ended
	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
Cash flows from operating activities:
Net loss	(1,654,988)	(5,070,673)
Adjustments to reconcile net loss to net cash used in operating activites:
Amortization of debt discount	3,074	34,034
Depreciation expense	9,123	2,740
Common stock issued for services	360,370	567,716
Warrants issued for services	10,839	3,857,136
Changes in net assets and liabilities:
(Increase) decrease in accounts receivable	$ (11,797)	$ 0
(Increase) decrease in prepaid expense	$ 23,000	$ (24,090)
(Increase) decrease accounts payable - related party	1,682	138
Increase (decrease) in accounts payable	$ 11,604	$ 16,519
Increase (decrease) in customer deposits	50,000	0
Increase (decrease) in accrued expenses	(19,037)	14,076
Net cash provided by (used in) operating activities	$ (1,216,130)	$ (602,404)
Cash flows from investing activities:
Purchase of equipment	(2,569)	(32,194)
Net cash prodided by (used in) investing activities	$ (2,569)	$ (32,194)
Cash flows from financing activities:
Contributed capital - debt forgiven	0	28,436
Proceeds from issuance of common stock	$ 124,000	$ 2,066,476
Proceeds of debt borrowings	0	14,500
Principal payments	0	(14,500)
Net cash provided by financing activities	$ 124,000	$ 2,094,912
Foreign currency translations	(17,407)	6,485
Change in cash	$ (1,112,106)	$ 1,466,798
Cash at beginning of period	1,469,267	2,469
Cash at end of period	357,161	1,469,267
Non cash transactions:
Beneficial conversion feature	37,500	0
Convertible note issued for issuance fees	37,500	0
Debt and accrued interest converted into equity	0	132,642

Note 1. The Company and Signifi

Note 1. The Company and Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Notes
Note 1. The Company and Significant Accounting Policies	Note 1. The Company and Significant Accounting Policies Organizational Background: The accompanying financial statements of OWCP were prepared from the accounts of the Company under the accrual basis of accounting. Certain amounts in the financial statements have been reclassified to conform to the current presentation. The reclassifications had no effect on the reported net loss. Basis of Presentation: The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has not established any source of revenue to cover its operating costs, and as such, has incurred an operating loss since inception. These and other factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern. Principles of Consolidation: he financial statements include the accounts of OWC Pharmaceutical Research Corp. and its wholly owned subsidiary One World Cannabis, Inc. (OWC). All significant inter-company balances and transactions have been eliminated. Significant Accounting Policies Use of Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates. Cash and Cash Equivalents: For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. There were no cash equivalents at December 31, 2015 and December 31, 2014. Property and Equipment: New property and equipment are recorded at cost. Property and equipment included in the bankruptcy proceedings and transferred to the Trustee had been valued at liquidation value. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 5 years. Expenditures for renewals and betterments are capitalized. Expenditures for minor items, repairs and maintenance are charged to operations as incurred. Gain or loss upon sale or retirement due to obsolescence is reflected in the operating results in the period the event takes place. Valuation of Long-Lived Assets: We review the recoverability of our long-lived assets including equipment, goodwill and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows. The measurement of impairment requires management to make estimates of these cash flows related to long-lived assets, as well as other fair value determinations. Foreign Currency: Non-U.S. entity operations are recorded in the functional currency of each entity. Results of operations for non-U.S. dollar functional currency entities are translated into U.S. dollars using average currency rates. Assets and liabilities are translated using currency rates at period end. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders' equity. Stock Based Compensation: Stock-based awards are accounted for using the fair value method in accordance with ASC 718, Share-Based Payments. Our primary type of share-based compensation consists of stock options. We use the Black-Scholes option pricing model in valuing options. The inputs for the valuation analysis of the options include the market value of the Company's common stock, the estimated volatility of the Company's common stock, the exercise price of the warrants and the risk free interest rate. Accounting For Obligations And Instruments Potentially To Be Settled In The Company's Own Stock: We account for obligations and instruments potentially to be settled in the Company's stock in accordance with FASB ASC 815, Accounting for Derivative Financial Instruments. This issue addresses the initial balance sheet classification and measurement of contracts that are indexed to, and potentially settled in, the Company's own stock. Fair Value of Financial Instruments: FASB ASC 825, "Financial Instruments," requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. FASB ASC 825 defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. At December 31, 2015 and December 31, 2014, the carrying value of certain financial instruments (cash and cash equivalents, accounts payable and accrued expenses.) approximates fair value due to the short-term nature of the instruments or interest rates, which are comparable with current rates. Fair Value Measurements: The Company measures fair value under a framework that utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of inputs which prioritize the inputs used in measuring fair value are: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2: Inputs to the valuation methodology include: - Quoted prices for similar assets or liabilities in active markets; - Quoted prices for identical or similar assets or liabilities in inactive markets; - Inputs other than quoted prices that are observable for the asset or liability; - Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The assets or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following table presents assets and liabilities that were measured and recognize at fair value on December 31, 2015 and December 31, 2014 and the year then ended on a recurring basis: Fair Value Measurements at December 31, 2015 Quoted Prices in Active Significant Other Significant Markets for Identical Assets Observable Inputs Unobservable Inputs Total (Level 1) (Level 2) (Level 3) None $ - $ - $ - $ - Total assets and liabilities at fair value $ - $ - $ - $ - Fair Value Measurements at December 31, 2014 Quoted Prices in Active Significant Other Significant Markets for Identical Assets Observable Inputs Unobservable Inputs Total (Level 1) (Level 2) (Level 3) None $ - $ - $ - $ - Total assets and liabilities at fair value $ - $ - $ - $ - When the Company changes its valuation inputs for measuring financial assets and liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the fiscal periods ended December 31, 2015 and December 31, 2014, there were no significant transfers of financial assets or financial liabilities between the hierarchy levels. Earnings per Common Share: We compute net income (loss) per share in accordance with ASC 260, Earning per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive. Income Taxes: We have adopted ASC 740, Accounting for Income Taxes. Pursuant to ASC 740, we are required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. We must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. Deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax basis of assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse. ASC 740 provides for the recognition of deferred tax assets if realization of such assets is more likely than not to occur. Realization of our net deferred tax assets is dependent upon our generating sufficient taxable income in future years in appropriate tax jurisdictions to realize benefit from the reversal of temporary differences and from net operating loss, or NOL, carryforwards. We have determined it more likely than not that these timing differences will not materialize and have provided a valuation allowance against substantially all of our net deferred tax asset. Management will continue to evaluate the realizability of the deferred tax asset and its related valuation allowance. If our assessment of the deferred tax assets or the corresponding valuation allowance were to change, we would record the related adjustment to income during the period in which we make the determination. Our tax rate may also vary based on our results and the mix of income or loss in domestic and foreign tax jurisdictions in which we operate. In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and to the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we will reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We will record an additional charge in our provision for taxes in the period in which we determine that the recorded tax liability is less than we expect the ultimate assessment to be. ASC 740 which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized. Uncertain Tax Positions: When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of FASB ASC 740-10, Accounting for Uncertain Income Tax Positions, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Our federal and state income tax returns are open for fiscal years ending on or after December 31, 2010. We are not under examination by any jurisdiction for any tax year. At December 31, 2015 we had no material unrecognized tax benefits and no adjustments to liabilities or operations were required under FASB ASC 740-10. Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Currently, debt issuance costs are recognized as deferred charges and recorded as other assets. The guidance is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted and is to be implemented retrospectively. Adoption of the new guidance will only affect the presentation of the Company's consolidated balance sheets and will have no impact to our financial statements. Management does not anticipate that the adoption of these standards will have a material impact on the financial statements. The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions.

2. Stockholders' Equity

2. Stockholders' Equity	12 Months Ended
	Dec. 31, 2015
Notes
2. Stockholders' Equity	2. Stockholders' Equity Common Stock Issuance in 2015: 1,416,667 Shares of Common Stock Issued for Cash In connection with a private placement of 10,000,000 shares of common stock in February of 2015 we sold 800,000 shares to one investor for the offering price of $0.05 per share that resulted in total proceeds of $40,000. During 2015, we also received $50,000 through a placement of common stock units. Those units were sold at $0.15 per unit. Each unit consisted of one share of common stock and one warrant to purchase common stock. We are obligated to issue 333,333 shares to one investor of this offering. The $50,000 received through the unit offering is carried as subscription payable in stockholders' equity at June 30, 2015. The related warrants are exercisable at $0.25 and expire on December 31, 2016. The relative fair value of the attached to the common stock component is $26,416 and the relative fair value of the warrants is $23,584 as of the grant date. During the period ended June 30, 2015, the Company cancelled 500,000 shares of common stock previously issued for services. During 2015, we received $34,000 through a placement of 283,334 shares of common stock (during the third quarter 200,000 shares and during the fourth quarter 83,334 shares). The shares were sold in units at $0.24 per unit ($0.12 per share). Each unit consisted of two shares of common stock and two warrants to purchase common stock. 141,6367 warrants are exercisable at $0.12 and expire 12 months from the date of issuance while the other 141,667 warrants are exercisable at $0.25 and expire 24 months from the date of issuance. The relative fair value of the attached to the common stock component is $18,672 and the relative fair value of the warrants is $15,328 as of the grant date. 1,614,935 Shares of Common Stock Issued for Services During the year ended December 31, 2015 we issued 1,614,935 shares of our common stock to unrelated parties as payment for services. The shares were valued at the closing price as of the date of the agreements (ranging from $0.19 to $0.25) and resulted in full recognition of $360,370 in consulting services expense. Common Stock Issuance in 2014: During 2014 we issued 56,787,791 shares according following description. In addition to 21,641,450 shares outstanding at 12/31/2013, made a balance of total 78,429,241 shares outstanding on 12/31/2014. 13,263,300 Shares of Common Stock Issued upon Conversion of Debt In the first quarter of 2014 we issued 13,084,000 shares of our common stock in settlement of $114,414 in convertible note payable plus associated accrued interest of $16,435. The conversion occurred within the terms of the promissory note and no gain or loss resulted. In the third quarter of 2014 we issued 179,300 shares of our common stock in settlement of $1,500 in convertible note payable plus associated accrued interest of $293. The conversion occurred within the terms of the promissory note and no gain or loss resulted. 6,995,416 Shares of Common Stock Issued for Services During the year ended December 31, 2014 we issued 595,416 shares (400,000 shares of our common stock to two unrelated parties and to the Company's CFO 195,416 shares) as payment for services. We also issued 400,000 shares to two former officers and directors of the company as part of a severance agreement. The shares were valued at the closing price as of the date of the agreements (ranging from $0.25 to $0.28) and resulted in full recognition of $155,716 and $112,000, respectively, in consulting services expense. We also issued 6,000,000 shares of our common stock to six unrelated parties as payment for services (during first quarter we issued 9,108,600 shares and canceled 3,108,600 shares during second quarter). The shares were valued at the closing price as of the date of the agreement ($0.05) and resulted in full recognition of $300,000 in consulting services expense. 36,529,075 Shares of Common Stock Issued for Cash We raised capital through four different private placements of common stock in 2014. We sold 4,700,000 shares (1,750,000 shares during first quarter and 2,950,000 shares during the second) to six investors for the offering price of $0.005 per share that resulted in total proceeds of $23,500. We sold 13,034,585 shares through a placement of common stock. Those shares were sold on fourth quarter to nine investors for the offering price of $0.05 per share resulting in proceeds of $651,730. As of December 31, 2014, the proceeds of this offering are carried as subscriptions receivable. We sold 12,936,662 shares through a placement of common stock units (9,392,218 shares during second quarter and 3,544,444 shares during third quarter). Those units were sold to twenty-two investors for the offering price of $0.09 per share resulting in proceeds of $1,164,300. Each unit consisted of one share of common stock and one warrant to purchase common stock. The warrants are exercisable at $0.16 and expire one year from the date of issuance. The relative fair value of the common stock component and warrants (based on the Black-Scholes option pricing model) was estimated $340,758 and $823,542, respectively. The Black Sholes-Merton pricing model assumptions used are as follows: expected dividend yield of 0%; risk-free interest rate of 0.10% - 0.11%; expected volatility of 249%, and warrant term of one year. We sold 5,857,828 shares through a placement of common stock units (3,694,666 shares during third quarter and 2,163,162 shares during fourth quarter). Those units were sold to fifteen investors for the offering price of $0.15 per share resulting in proceeds of $878,676. Each unit consisted of one share of common stock and one warrant to purchase common stock. The warrants are exercisable at $0.25 and expire one year from the date of issuance. The relative fair value of the common stock component and warrants (based on the Black-Scholes option pricing model) was estimated to be $373,706 and $504,970, respectively. The Black-Sholes Merton pricing model assumptions used are as follows: expected dividend yield of 0%; risk-free interest rate of 0.10%-.0.11%; expected volatility of 249%, and warrant term of one year. A summary of the offerings is as follows: Offering Common Stock Subscribed Proceeds Warrants Exercise Price Term $0.005 per share 4,700,000 $23,500 - - - $0.05 per share 13,034,585 $651,730 - - - $0.09 per share 12,936,662 $1,164,300 12,936,662 $0.16 1 year $0.15 per share 5,857,828 $878,676 5,858,828 $0.25 1 year Warrants Issued for Services: During the year ended December 31, 2014 we issued 14,350,000 common stock warrants. 350,000 of those warrants valued at $82,640 were granted to former related parties while 14,000,000 warrants valued at $3,774,496 were granted for services provided by unrelated parties. The fair value of the warrants was estimated at the date of grant using the Black-Sholes-Merton pricing model. The BlackSholes-Merton pricing model assumptions used are as follows: expected dividend yield of 0%; risk-free interest rate of 0.47% to 0.49%; expected volatility of 241%, and warrant term of two years. In conjunction with the 2014 unit offerings the Company issued a total of 18,794,490 warrants to purchase up to 18,794,490 shares of common stock at $0.16 - $0.25 per share. As part of the 2015 unit offerings the Company issued a total of 616,667 warrants to purchase up to 616,667 shares of common stock ranging from $0.12 to $0.25 per share. The relative fair value of the warrants attached to the common stock issued was estimated at the date of grant using the Black-Sholes-Merton pricing model. The relative fair value of the attached to the common stock component is $45,088 and the relative fair value of the warrants is $38,912 as of the grant date. In February, 2015 we granted 64,935 warrants for services. The warrants are exercisable at $0.25 and expire February 23, 2016. We used the Black-Scholes-Merton pricing model to estimate the fair value of $10,839. The Black-Sholes-Merton pricing model assumptions used are as follows: expected dividend yield of 0%; risk-free interest rate of 0.10% - 0.11%; expected volatility of 242%, and warrant exercise period based upon the stated terms. Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term (months) Aggregate Intrinsic Value* Warrants outstanding at December 31, 2013 600,000 $0.05 - - Granted 33,144,490 $0.17 - - Exercised - $0.00 - - Lapsed - $0.00 - - Warrants outstanding at December 31, 2014 33,744,490 $0.16 12.1 $2,892,800 Granted 681,602 $0.22 - - Exercised - $0.00 - - Lapsed (18,794,490) $0.19 - - Warrants outstanding at December 31, 2015 15,631,602 $0.14 7.3 $- Warrants exercisable at December 31, 2015 15,631,602 $0.14 7.3 $- * Amount by which the fair value of the stock at the balance sheet date exceeds the exercise price The following table summarizes the status of the Company's aggregate warrants as of December 31, 2015: Range of Exercise Prices Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (months) Shares Weighted Average Exercise Price $0.01 - $0.15 15,091,667 $0.14 7.1 15,091,667 $0.14 $0.16 - $0.25 539,935 $0.25 12.9 539,935 $0.25 Total Warrants 15,631,602 15,631,602

3. Related Party Transactions

3. Related Party Transactions	12 Months Ended
	Dec. 31, 2015
Notes
3. Related Party Transactions	3. Related Party Transactions Due Related Parties: Amounts due related parties totaled $1,820 at December 31, 2015 and $138 at December 31, 2014, respectively. The company paid $21,943 in rent to a related party in 2015. Accounts receivable from related parties was $0 at December 31, 2015 and $0 at December 31, 2014. We loaned OWC $903,494 and $660,764 without interest in the years ended December 31, 2015 and 2014, respectively, to fund its operations. As of December 31, 2015, OWC owed us $1,564,258. We have engaged in the following transactions with officers, directors and employees of OWCP or OWC since January 1, 2014: In October 2014 we issued 132,500 shares of common stock for services valued at $371,00 based upon the closing prices of our common stock of $0.28 per share to Shmuel De-Saban, our Chief Financial Officer. In December 2014, we sold Mr. De-Saban 62,916 shares of shares of common stock at a purchase price of $0.28 per share. In October 2014, we sold 2,104,480 shares of common stock at a purchase price of $0.05 per share to Ziv Turner, the Chief Executive Officer of OWC. In October 2014 we sold 861,250 shares of common stock at a purchase price of $0.05 per share to Alon Sinai, the Chief Operating Officer of OWC. In December 2014 we sold Mr. Sinai 150,000 shares of common stock at a purchase price of $0.05 per share. In December 2014 we sold 2,120,000 shares of common stock at a purchase price of $0.05 per share to Dr. Yehuda Baruch, OWC's Director of Research and Regulatory Affairs. Agreements with Executive Officers On July 15, 2014, the Company entered into a services agreement with Mr. Bignitz pursuant to which Mr. Bignitz agreed to serve as our Chief Executive Officer for compensation of $1,000 per month through December 31, 2015. Mr. Bignitz's compensation for 2016 is $1,000 per month. On July 11, 2014, the Company entered into a services agreement with Shmuel De-Saban pursuant to which Mr. De-Saban agreed to serve as our Chief Financial Officer for compensation consisting of 132,500 shares of common stock issued on October 23, 2014 and 62,916 shares of common stock issued on December 22, 2014. On October 2, 2014, the Company entered into a supplement to the employment agreement with Mr. De-Saban pursuant to which it issued Mr. De-Saban options to purchase 977,080 shares of common stock at an exercise price of $0.01, which options expire on October 1, 2018. The options shall vest upon the achievement of certain milestones by OWC. As of December 31, 2015, no milestone has been achieved and no options have vested. Mr. De-Saban agreed to forfeit his options on January 31, 2016 in connection with entry into a new services agreement. On January 31, 2016, the Company and Mr. De-Saban entered into a new services agreement pursuant to which he agreed to serve as our Chief Financial Officer for compensation consisting of 195,416 shares of common stock. Either party may terminate the agreement without cause upon 30 days notice. The Company may terminate the agreement for cause, effective upon delivery of notice. On July 15, 2014, the Company entered into a settlement agreement with Ori Goore, a former director and the former Chief Executive Officer of the Company, pursuant to which, upon his resignation from all positions with the Company, the Company paid Mr. Goore $7,500 and issued Mr. Goore 250,000 shares of common stock and two-year warrants to purchase 150,000 shares of common stock at an exercise price of $0.14 per share. On July 15, 2014, the Company entered into a settlement agreement with Eli Gonen, a former director of the Company, pursuant to which, upon his resignation from all positions with the Company, the Company issued Mr. Gonen 250,000 shares of common stock and two-year warrants to purchase 150,000 shares of common stock at an exercise price of $0.14 per share. On August 29, 2015 the company entered into a services agreement with Mr. Toker pursuant to which Mr. Toker agreed to serve as our Chief Science Officer for compensation of $2,000 per month. On January 18, 2016 the Company issued Mr. Toker options to purchase 100,000 shares of common stock. 50,000 of the options shall vest six months from the date of grant at an exercise price of $0.10 per share and the remaining 50,000 shall vest one year from the date of grant at an exercise price of $0.30 per share. The options shall expire five years from the date of grant.

4. Notes Payable

4. Notes Payable	12 Months Ended
	Dec. 31, 2015
Notes
4. Notes Payable	4. Notes Payable Unsecured Notes Payable With Conversion Rights During 2015 the Company agreed to provide unsecured promissory notes with an unrelated party for $37,500. The note is non-interest bearing and is due on June 16, 2016. The note has a future conversion right that allows the holder to convert the principal balance into the Company's common stock at the lender's sole discretion at 50% of the then market price per share. In accordance with ASC 470, the Company has analyzed the beneficial nature of the conversion terms and determined that a beneficial conversion feature (BCF) exists because the effective conversion price was less than the quoted market price at the time of the issuance. The Company calculated the value of the BCF using the intrinsic method as stipulated in ASC 470. The BCF of $37,500 has been recorded as a discount to the notes payable and to Additional Paid-in Capital. For the year ended December 31, 2015 the Company has amortized $3,074 of the beneficial conversion feature which has also been recorded as interest expense. The carrying value of convertible note is as follows: Face amount of the note $ 37,500 Unamortized discount (34,426) Carrying value at December 31, 2015 $ 3,074 On February 28, 2014, eleven holders of convertible notes with an aggregate principal balance of $114,414 and accrued interest of $16,435 converted their notes and accrued interest into 13,084,000 shares of common stock. Upon conversion, $34,034 of unamortized discount arising from the previously recorded beneficial conversion feature was recognized as additional interest expense. The conversion occurred within the terms of the promissory note and no gain or loss resulted. Unsecured Notes Payable Without Conversion Rights During 2014, the Company signed a series of three new unsecured promissory notes with unrelated parties for an aggregate of $14,500. The notes bear interest at 1% per annum and are due one year from the date of issuance. The notes were paid in full in 2014.

5. Future Commitment and Issuan

5. Future Commitment and Issuance of Warrants	12 Months Ended
	Dec. 31, 2015
Notes
5. Future Commitment and Issuance of Warrants	5. Future Commitment and Issuance of Warrants On March 5, 2013, the Company and GUMI Tel Aviv Ltd, a major, privately-held Israeli technology company ("GUMI"), entered into development/manufacturing/marketing agreement ("GUMI Agreement"). GUMI is engaged in the manufacture, import/export, marketing and install industrial equipment and designing technical solutions. Pursuant to the GUMI Agreement, GUMI agreed to: (i) complete the development of the Prototype of the Patented Device; (ii) manufacture the commercial model(s) of the Patented device; and (iii) market the commercial model(s) of the Patented Device. In consideration for developing the Prototype and manufacturing and marketing/distributing commercial models of the Patented Device as well as incurring all related costs and expenses in connection therewith, the Company shall compensate GUMI as follows: (i) upon the execution of the GUMI Agreement, the Company granted GUMI warrants (the "Warrants") exercisable to purchase 200,000 shares of the Company's common stock ("Warrant Shares") at an exercise price of USD$0.05 per share (the "Exercise Price"); (ii) upon completion of the Prototype, granting GUMI additional Warrants to purchase 200,000 additional Warrant Shares at the Exercise Price; and (iii) upon completion of a Commercial Device ready for manufacture and sale, granting GUMI additional Warrants to purchase 200,000 additional Warrant Shares at the Exercise Price. The Warrants shall expire 3 years from the date of each grant and shall be subject to adjustment in the event of any recapitalization of the Company's capital stock. In addition to the consideration represented by the grant of Warrants, the Agreement further provides that following commencement of sale of the Commercial Device and until such time that GUMI has recouped all costs and expenses that it has incurred and paid in connection with the completion of development of the Prototype and the manufacture of the Commercial Device ("Date of Recoupment"), one hundred (100%) percent of the net sales revenues shall be paid and distributed to GUMI. On and after the Date of Recoupment, net sales revenues shall be paid sixty-five (65%) percent to GUMI and thirty-five (35%) percent to the Company. The Company recorded $107,074 in fiscal year 2013 in expenses related to 600,000 vested warrants previously granted to GUMI Tel Aviv Ltd. The warrants were valued using the Black-Scholes option pricing model. The inputs for the valuation analysis of the warrants include the market value of the Company's common stock were as follows: the estimated volatility of the Company's common stock used in the Black-Scholes option pricing model was 318%, the exercise price and the risk free interest rate used were $0.05 and 0.36%, respectively. All warrants are fully vested.

6. Income Taxes

6. Income Taxes	12 Months Ended
	Dec. 31, 2015
Notes
6. Income Taxes	6. Income Taxes We have adopted ASC 740 which provides for the recognition of a deferred tax asset based upon the value the loss carry-forwards will have to reduce future income taxes and management's estimate of the probability of the realization of these tax benefits. Our net operating loss carryovers incurred prior to 2010 considered available to reduce future income taxes were reduced or eliminated through a change of control (I.R.C. Section 382(a)) and the continuity of business limitation of I.R.C. Section 382(c). We have a current operating loss carry-forward of $_______ resulting in deferred tax assets of $_____. We have determined it more likely than not that these timing differences will not materialize and have provided a valuation allowance against substantially all our net deferred tax asset. December 31, 2015 December 31, 2014 Individual components giving rise to the deferred tax assets are as follows: Future tax benefits arising from net operating loss carryovers $ 1,980,900 $ 1,632,100 Future tax benefits arising from equity compensation 36,400 36,400 Total $ 2,017,300) $ 1,668,500 Less valuation allowance (2,017,300) (1,668,500) Net deferred $ - $ - The components of pretax loss are as follows: US Non-US $ (690,420) $ (4,588,573) Change in valuation allowance (964,568) (482,100) $ (1,654,988) $ (5,070,673) Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. The annual limitation may result in the expiration of NOL and tax credit carry forwards before full utilization. The Company is not under examination by any jurisdiction for any tax year. Our federal and state income tax returns are open for fiscal years ending on or after December 31, 2012.

7. Going Concern

7. Going Concern	12 Months Ended
	Dec. 31, 2015
Notes
7. Going Concern	7. Going Concern The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has not established any source of revenue to cover its operating costs, and as such, has incurred an operating loss since inception. Further, as of December 31, 2015, the cash resources of the Company were insufficient to meet its current business plan. These and other factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of asset or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

8. Subsequent Events

8. Subsequent Events	12 Months Ended
	Dec. 31, 2015
Notes
8. Subsequent Events	8. Subsequent Events There were no subsequent events following the period ended December 31, 2015 and throughout the date of the filing of Form 10-K.

Note 1. The Company and Signi15

Note 1. The Company and Significant Accounting Policies: Basis of Presentation (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Basis of Presentation:	Basis of Presentation: The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has not established any source of revenue to cover its operating costs, and as such, has incurred an operating loss since inception. These and other factors raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

Note 1. The Company and Signi16

Note 1. The Company and Significant Accounting Policies: Use of Estimates (Policies)	12 Months Ended
	Dec. 31, 2015
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 reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statement and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from the estimates.

Note 1. The Company and Signi17

Note 1. The Company and Significant Accounting Policies: Cash and Cash Equivalents (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Cash and Cash Equivalents:	Cash and Cash Equivalents: For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. There were no cash equivalents at December 31, 2015 and December 31, 2014.

Note 1. The Company and Signi18

Note 1. The Company and Significant Accounting Policies: Property and Equipment (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Property and Equipment:	Property and Equipment: New property and equipment are recorded at cost. Property and equipment included in the bankruptcy proceedings and transferred to the Trustee had been valued at liquidation value. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, generally 5 years. Expenditures for renewals and betterments are capitalized. Expenditures for minor items, repairs and maintenance are charged to operations as incurred. Gain or loss upon sale or retirement due to obsolescence is reflected in the operating results in the period the event takes place.

Note 1. The Company and Signi19

Note 1. The Company and Significant Accounting Policies: Valuation of Long-lived Assets (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Valuation of Long-lived Assets:	Valuation of Long-Lived Assets: We review the recoverability of our long-lived assets including equipment, goodwill and other intangible assets, when events or changes in circumstances occur that indicate that the carrying value of the asset may not be recoverable. The assessment of possible impairment is based on our ability to recover the carrying value of the asset from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset, an impairment loss is recognized for the difference between estimated fair value and carrying value. Our primary measure of fair value is based on discounted cash flows. The measurement of impairment requires management to make estimates of these cash flows related to long-lived assets, as well as other fair value determinations.

Note 1. The Company and Signi20

Note 1. The Company and Significant Accounting Policies: Foreign Currency (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Foreign Currency:	Foreign Currency: Non-U.S. entity operations are recorded in the functional currency of each entity. Results of operations for non-U.S. dollar functional currency entities are translated into U.S. dollars using average currency rates. Assets and liabilities are translated using currency rates at period end. Foreign currency translation adjustments are recorded as a component of accumulated other comprehensive income (loss) within stockholders' equity.

Note 1. The Company and Signi21

Note 1. The Company and Significant Accounting Policies: Stock Based Compensation (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Stock Based Compensation:	Stock Based Compensation: Stock-based awards are accounted for using the fair value method in accordance with ASC 718, Share-Based Payments. Our primary type of share-based compensation consists of stock options. We use the Black-Scholes option pricing model in valuing options. The inputs for the valuation analysis of the options include the market value of the Company's common stock, the estimated volatility of the Company's common stock, the exercise price of the warrants and the risk free interest rate.

Note 1. The Company and Signi22

Note 1. The Company and Significant Accounting Policies: Accounting For Obligations and Instruments Potentially To Be Settled in The Company's Own Stock (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Accounting For Obligations and Instruments Potentially To Be Settled in The Company's Own Stock:	Accounting For Obligations And Instruments Potentially To Be Settled In The Company's Own Stock: We account for obligations and instruments potentially to be settled in the Company's stock in accordance with FASB ASC 815, Accounting for Derivative Financial Instruments. This issue addresses the initial balance sheet classification and measurement of contracts that are indexed to, and potentially settled in, the Company's own stock.

Note 1. The Company and Signi23

Note 1. The Company and Significant Accounting Policies: Fair Value of Financial Instruments (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Fair Value of Financial Instruments:	Fair Value of Financial Instruments: FASB ASC 825, "Financial Instruments," requires entities to disclose the fair value of financial instruments, both assets and liabilities recognized and not recognized on the balance sheet, for which it is practicable to estimate fair value. FASB ASC 825 defines fair value of a financial instrument as the amount at which the instrument could be exchanged in a current transaction between willing parties. At December 31, 2015 and December 31, 2014, the carrying value of certain financial instruments (cash and cash equivalents, accounts payable and accrued expenses.) approximates fair value due to the short-term nature of the instruments or interest rates, which are comparable with current rates.

Note 1. The Company and Signi24

Note 1. The Company and Significant Accounting Policies: Fair Value Measurements (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Fair Value Measurements:	Fair Value Measurements: The Company measures fair value under a framework that utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of inputs which prioritize the inputs used in measuring fair value are: Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2: Inputs to the valuation methodology include: - Quoted prices for similar assets or liabilities in active markets; - Quoted prices for identical or similar assets or liabilities in inactive markets; - Inputs other than quoted prices that are observable for the asset or liability; - Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The assets or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The following table presents assets and liabilities that were measured and recognize at fair value on December 31, 2015 and December 31, 2014 and the year then ended on a recurring basis: Fair Value Measurements at December 31, 2015 Quoted Prices in Active Significant Other Significant Markets for Identical Assets Observable Inputs Unobservable Inputs Total (Level 1) (Level 2) (Level 3) None $ - $ - $ - $ - Total assets and liabilities at fair value $ - $ - $ - $ - Fair Value Measurements at December 31, 2014 Quoted Prices in Active Significant Other Significant Markets for Identical Assets Observable Inputs Unobservable Inputs Total (Level 1) (Level 2) (Level 3) None $ - $ - $ - $ - Total assets and liabilities at fair value $ - $ - $ - $ - When the Company changes its valuation inputs for measuring financial assets and liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the fiscal periods ended December 31, 2015 and December 31, 2014, there were no significant transfers of financial assets or financial liabilities between the hierarchy levels.

Note 1. The Company and Signi25

Note 1. The Company and Significant Accounting Policies: Earnings Per Common Share (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Earnings Per Common Share:	Earnings per Common Share: We compute net income (loss) per share in accordance with ASC 260, Earning per Share. ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

Note 1. The Company and Signi26

Note 1. The Company and Significant Accounting Policies: Income Taxes (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Income Taxes:	Income Taxes: We have adopted ASC 740, Accounting for Income Taxes. Pursuant to ASC 740, we are required to compute tax asset benefits for net operating losses carried forward. The potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. We must make certain estimates and judgments in determining income tax expense for financial statement purposes. These estimates and judgments occur in the calculation of certain tax assets and liabilities, which arise from differences in the timing of recognition of revenue and expense for tax and financial statement purposes. Deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax basis of assets and liabilities using the tax rates and laws in effect when the differences are expected to reverse. ASC 740 provides for the recognition of deferred tax assets if realization of such assets is more likely than not to occur. Realization of our net deferred tax assets is dependent upon our generating sufficient taxable income in future years in appropriate tax jurisdictions to realize benefit from the reversal of temporary differences and from net operating loss, or NOL, carryforwards. We have determined it more likely than not that these timing differences will not materialize and have provided a valuation allowance against substantially all of our net deferred tax asset. Management will continue to evaluate the realizability of the deferred tax asset and its related valuation allowance. If our assessment of the deferred tax assets or the corresponding valuation allowance were to change, we would record the related adjustment to income during the period in which we make the determination. Our tax rate may also vary based on our results and the mix of income or loss in domestic and foreign tax jurisdictions in which we operate. In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for anticipated tax audit issues in the U.S. and other tax jurisdictions based on our estimate of whether, and to the extent to which, additional taxes will be due. If we ultimately determine that payment of these amounts is unnecessary, we will reverse the liability and recognize a tax benefit during the period in which we determine that the liability is no longer necessary. We will record an additional charge in our provision for taxes in the period in which we determine that the recorded tax liability is less than we expect the ultimate assessment to be. ASC 740 which requires recognition of estimated income taxes payable or refundable on income tax returns for the current year and for the estimated future tax effect attributable to temporary differences and carry-forwards. Measurement of deferred income tax is based on enacted tax laws including tax rates, with the measurement of deferred income tax assets being reduced by available tax benefits not expected to be realized.

Note 1. The Company and Signi27

Note 1. The Company and Significant Accounting Policies: Uncertain Tax Positions (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Uncertain Tax Positions:	Uncertain Tax Positions: When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of FASB ASC 740-10, Accounting for Uncertain Income Tax Positions, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Our federal and state income tax returns are open for fiscal years ending on or after December 31, 2010. We are not under examination by any jurisdiction for any tax year. At December 31, 2015 we had no material unrecognized tax benefits and no adjustments to liabilities or operations were required under FASB ASC 740-10.

Note 1. The Company and Signi28

Note 1. The Company and Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	12 Months Ended
	Dec. 31, 2015
Policies
Recent Accounting Pronouncements	Recent Accounting Pronouncements In April 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-03, "Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs." ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. Currently, debt issuance costs are recognized as deferred charges and recorded as other assets. The guidance is effective for annual and interim periods beginning after December 15, 2015 with early adoption permitted and is to be implemented retrospectively. Adoption of the new guidance will only affect the presentation of the Company's consolidated balance sheets and will have no impact to our financial statements. Management does not anticipate that the adoption of these standards will have a material impact on the financial statements. The preparation of these financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including those related intangible assets, income taxes, insurance obligations and contingencies and litigation. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other resources. Actual results may differ from these estimates under different assumptions or conditions.

Note 1. The Company and Signi29

Note 1. The Company and Significant Accounting Policies: Fair Value Measurements: Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	Fair Value Measurements at December 31, 2015 Quoted Prices in Active Significant Other Significant Markets for Identical Assets Observable Inputs Unobservable Inputs Total (Level 1) (Level 2) (Level 3) None $ - $ - $ - $ - Total assets and liabilities at fair value $ - $ - $ - $ - Fair Value Measurements at December 31, 2014 Quoted Prices in Active Significant Other Significant Markets for Identical Assets Observable Inputs Unobservable Inputs Total (Level 1) (Level 2) (Level 3) None $ - $ - $ - $ - Total assets and liabilities at fair value $ - $ - $ - $ -

2. Stockholders' Equity_ Summar

2. Stockholders' Equity: Summary of Stock and Warrant Offerings in 2015 (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Summary of Stock and Warrant Offerings in 2015	Offering Common Stock Subscribed Proceeds Warrants Exercise Price Term $0.005 per share 4,700,000 $23,500 - - - $0.05 per share 13,034,585 $651,730 - - - $0.09 per share 12,936,662 $1,164,300 12,936,662 $0.16 1 year $0.15 per share 5,857,828 $878,676 5,858,828 $0.25 1 year

2. Stockholders' Equity_ Schedu

2. Stockholders' Equity: Schedule of Warrants (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Warrants	Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term (months) Aggregate Intrinsic Value* Warrants outstanding at December 31, 2013 600,000 $0.05 - - Granted 33,144,490 $0.17 - - Exercised - $0.00 - - Lapsed - $0.00 - - Warrants outstanding at December 31, 2014 33,744,490 $0.16 12.1 $2,892,800 Granted 681,602 $0.22 - - Exercised - $0.00 - - Lapsed (18,794,490) $0.19 - - Warrants outstanding at December 31, 2015 15,631,602 $0.14 7.3 $- Warrants exercisable at December 31, 2015 15,631,602 $0.14 7.3 $-

4. Notes Payable_ Carrying Valu

4. Notes Payable: Carrying Value of Convertible Note as of December 31, 2015 (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Carrying Value of Convertible Note as of December 31, 2015	Face amount of the note $ 37,500 Unamortized discount (34,426) Carrying value at December 31, 2015 $ 3,074

6. Income Taxes_ Schedule of In

6. Income Taxes: Schedule of Income before Income Tax, Domestic and Foreign (Tables)	12 Months Ended
	Dec. 31, 2015
Tables/Schedules
Schedule of Income before Income Tax, Domestic and Foreign	December 31, 2015 December 31, 2014 Individual components giving rise to the deferred tax assets are as follows: Future tax benefits arising from net operating loss carryovers $ 1,980,900 $ 1,632,100 Future tax benefits arising from equity compensation 36,400 36,400 Total $ 2,017,300) $ 1,668,500 Less valuation allowance (2,017,300) (1,668,500) Net deferred $ - $ - The components of pretax loss are as follows: US Non-US $ (690,420) $ (4,588,573) Change in valuation allowance (964,568) (482,100) $ (1,654,988) $ (5,070,673)