Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Mar. 19, 2015 | |
Document And Entity Information | ||
Entity Registrant Name | ADVANCED CREDIT TECHNOLOGIES INC | |
Entity Central Index Key | 1,437,517 | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer? | No | |
Is Entity a Voluntary Filer? | No | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Public Float | $ 8,337,716 | |
Entity Common Stock, Shares Outstanding | 36,342,747 | |
Document Fiscal Period Focus | FY | |
Document Fiscal Year Focus | 2,015 |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash in Bank | $ 44,125 | $ 14,788 |
Total assets | 44,125 | 14,788 |
Current liabilities | ||
Accounts and accrued expenses | 62,024 | 16,145 |
Loans Payable- stockholders | 191,400 | 195,784 |
Convertible Notes- stockholders | 25,533 | |
Total liabilities | 278,957 | 211,929 |
Stockholders' deficit | ||
Common stock 100,000,000, $.001 par value shares Issued and outstanding 36,342,747 Shares - December 31, 2015 and 22,061,498 Shares - December 31, 2014 | $ 36,343 | 22,061 |
Common stock subscribed | 2,600 | |
Additional paid-in capital | $ 1,260,711 | 871,396 |
Accumulated deficit | (1,531,886) | (1,093,199) |
Total stockholders' deficit | (234,832) | (197,142) |
Total liabilities and stockholders' deficit | $ 44,125 | $ 14,788 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock - par value | $ 0.001 | $ 0.001 |
Common stock - shares authorized | 100,000,000 | 100,000,000 |
Common stock - shares issued | 36,342,747 | 22,061,498 |
Common stock - shares outstanding | 36,342,747 | 22,061,498 |
Statements of Operations
Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Statement [Abstract] | ||
Revenues | $ 6,186 | $ 11,550 |
Consulting revenue | 5 | |
Gross margin | $ 6,186 | 11,555 |
Operating expenses | ||
Professional fee | 17,301 | 42,370 |
Research and Development | 192,610 | 67,425 |
Officer's compensation | 166,221 | 83,814 |
Travel and entertainment | 2,634 | 169 |
Rent | 1,200 | 1,000 |
Computer and internet | 3,106 | 825 |
Telephone | 195 | 655 |
Office supplies and expenses | 7,979 | 1,731 |
Other operating expenses | 2,483 | 2,161 |
Total operating expenses | 393,729 | 200,150 |
Loss from operations | (387,543) | (188,595) |
Interest expense | 52,289 | $ 300 |
Other income | $ (1,145) | |
Provision for income taxes | ||
Net loss | $ (438,687) | $ (188,895) |
Earnings per share Weighted Average | $ (0.02) | $ (0.01) |
Weighted average shares outstanding | 26,051,909 | 21,987,931 |
Statement of Stockholders Defic
Statement of Stockholders Deficit (USD $) - USD ($) | Common Stock | Common Stock Subscribed | Additional Paid-In Capital | Accumlated Deficit | Total |
Beginning Balance, Shares at Dec. 31, 2013 | 21,853,498 | ||||
Beginning Balance, Amount at Dec. 31, 2013 | $ 21,853 | $ 654 | $ 750,425 | $ (904,304) | $ (131,372) |
Proceeds from issuance of stock, amount | 1,600 | 82,900 | 84,500 | ||
Stock issued for consulting, amount | 494 | 35,131 | 35,625 | ||
Shares issued for Conversion of Debt, shares | 60,000 | ||||
Shares issued for Conversion of Debt, amount | $ 60 | 2,940 | $ 3,000 | ||
Shares issued for subscriptions, shares | 148,000 | ||||
Shares issued for subscriptions, amount | $ 148 | (148) | |||
Capital Contribution For Profit Sharing And Warrant | |||||
Net Loss | (188,895) | $ (188,895) | |||
Ending Balance, Shares at Dec. 31, 2014 | 22,061,498 | ||||
Ending Balance, Amount at Dec. 31, 2014 | $ 22,061 | 2,600 | 871,396 | (1,093,199) | (197,142) |
Proceeds from issuance of stock, shares | 1,127,164 | ||||
Proceeds from issuance of stock, amount | $ 1,127 | 46,373 | 47,500 | ||
Shares issued for Conversion of Debt, shares | 10,555,000 | ||||
Shares issued for Conversion of Debt, amount | $ 10,555 | 249,445 | $ 250,000 | ||
Shares issued for subscriptions, shares | 2,599,085 | ||||
Shares issued for subscriptions, amount | $ 2,600 | $ (2,600) | |||
Capital Contribution For Profit Sharing And Warrant | 90,000 | $ (90,000) | |||
Beneficial Conversion | 3,498 | 3,498 | |||
Net Loss | (438,687) | (438,687) | |||
Ending Balance, Shares at Dec. 31, 2015 | 36,342,747 | ||||
Ending Balance, Amount at Dec. 31, 2015 | $ 36,343 | $ 1,260,711 | $ (1,531,886) | $ (234,832) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | ||
Net loss | $ (438,687) | $ (188,895) |
Adjustments to reconcile net loss to net cash used in operating activities | ||
Stock issued for consulting service | $ 35,625 | |
Amortization of discount on notes payable | $ 2,040 | |
Accounts receivable | $ 1,000 | |
Accounts payable and accrued expenses | $ 45,879 | |
Net cash used in operating activities | (390,768) | $ (152,270) |
Financing Activities | ||
Proceeds from common stock issuance | 47,500 | 84,500 |
Stockholder loans | 255,616 | 83,585 |
Convertible notes | 26,990 | $ (3,000) |
Capital contribution for profit sharing and warrant | 90,000 | |
Net cash provided by financing activities | 420,106 | $ 165,085 |
Net increase (decrease) in cash and equivalents | 29,337 | 12,815 |
Cash and equivalents at beginning of the period | 14,788 | 1,973 |
Cash and equivalents at end of the period | $ 44,125 | $ 14,788 |
Supplemental cash flow information: | ||
Interest paid | ||
Income taxes paid |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Business On February 25, 2008, Advanced Credit Technologies, Inc. (the “Company”) was incorporated in the State of Nevada. Advanced Credit Technologies, Inc. provides a state of the art credit management platform that is a web based delivery system. Industries that benefit from the Company’s technology include realtors, auto dealers and loan originators. Basis of Presentation Our financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. (US GAAP) Reclassification Certain reclassifications have been made to conform previously reported data to the current presentation. These reclassifications have no effect on our net income (loss) or financial position as previously reported. Use of Estimates In preparing these financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the year reported. Actual results may differ from these estimates. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. Cash and Cash Equivalents Cash equivalents are comprised of certain highly liquid investments with maturities of three months or less when purchased. The Company maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. The Company has not experienced any losses related to this concentration of risk. As of December 31, 2015 and 2014 the Company had $0 in deposits in excess of federally-insured limits. Research and Development, Software Development Costs, and Internal Use Software Development Costs Research and development costs are charged to operations as incurred. Software development costs are accounted for in accordance with ASC Topic No. 985. Software development costs are capitalized once technological feasibility of a product is established and such costs are determined to be recoverable. For products where proven technology exists, this may occur very early in the development cycle. Factors we consider in determining when technological feasibility has been established include (i) whether a proven technology exists; (ii) the quality and experience levels of the individuals developing the software; (iii) whether the software is similar to previously developed software which has used the same or similar technology; and (iv) whether the software is being developed with a proven underlying engine. Technological feasibility is evaluated on a product-by-product basis. Capitalized costs for those products that are canceled or abandoned are charged immediately to cost of sales. The recoverability of capitalized software development costs is evaluated on the expected performance of the specific products for which the costs relate. Internal use software development costs are accounted for in accordance with ASC Topic No. 350 which requires the capitalization of certain external and internal computer software costs incurred during the application development stage. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. In accounting for website software development costs, we have adopted the provisions of ASC Topic No. 350. ASC Topic No. 350 provides that certain planning and training costs incurred in the development of website software be expensed as incurred, while application development stage costs are to be capitalized. During the years ending December 31, 2015 and 2014, we expensed $192,610 and $67,425 expenditure on research and development for the years ending December 31, 2015 and 2014, respectively. During the years ending December 31, 2015 and 2014, we have capitalized external and internal use software and website development costs totaling $-0- and $-0-, respectively. The estimated useful life of costs capitalized is evaluated for each specific project and ranges from one to three years. Advertising Expenses Advertising costs are expensed as incurred. Advertising expenses included in the Statement of Operations for the years ending December 31, 2015 and 2014 is $0 and $0, respectively. Fixed Assets The Company records its fixed assets at historical cost. The Company expenses maintenance and repairs as incurred. Upon disposition of fixed assets, the gross cost and accumulated depreciation are written off and the difference between the proceeds and the net book value is recorded as a gain or loss on sale of assets. The Company depreciates its fixed assets over their respective estimated useful lives ranging from 3 to 5 years. Intangible and Long-Lived Assets The Company follows FASB ASC 360-10, “Property, Plant, and Equipment,” Revenue Recognition The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed and determinable, and collectability is reasonably assured. Determining whether some or all of these criteria have been met involves assumptions and judgments that can have a significant impact on the timing and amount of revenue the Company reports. Fair Value Measurements For certain financial instruments, including accounts receivable, accounts payable, accrued expenses, interest payable, advances payable and notes payable, the carrying amounts approximate fair value due to their relatively short maturities. The Company has adopted FASB ASC 820-10, “Fair Value Measurements and Disclosures.” ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with FASB ASC 815. In February 2007, the FASB issued FAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities,” “Financial Instruments.” Segment Reporting FASB ASC 280, "Segment Reporting" Income Taxes Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment. 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. 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 is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations. Net Earnings (Loss) Per Share Earnings per share is calculated in accordance with the FASB ASC 260-10, “Earnings Per Share.” Basic earnings (loss) per share is based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. At December 31, 2015 and 2014, no potentially dilutive shares were outstanding. The computation of earnings per share of common stock is based on the weighted average number of shares outstanding at the date of the financial statements. Stock Based Compensation The Company adopted FASB ASC Topic 718 – Compensation – Stock Compensation (formerly SFAS 123R), which establishes the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with FASB ASC Topic 718 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model. The Company accounts for stock issued to non-employees where the value of the stock compensation is based upon the measurement date as determined at either (a) the date at which a performance commitment is reached, or (b) at the date at which the necessary performance to earn the equity instruments is complete. As there is no trading history during the periods of February 2008 through December 31, 2012 and the Company securities were not offered to the public, the Company had determined that the fair value of its stock is the price paid when it raises funds. There were no shares issued for services for the year 2015. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, and in August 2015 issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Under ASU 2015-03, debt issuance costs reported on the consolidated balance sheet would be reflected as a direct deduction from the related debt liability rather than as an asset. While ASU 2015-03 addresses costs related to term debt, ASU No. 2015-15 provides clarification regarding costs to secure revolving lines of credit, which are, at the outset, not associated with an outstanding borrowing. ASU No. 2015-15 provides commentary that the SEC staff would not object to an entity deferring and presenting costs associated with line-of-credit arrangements as an asset and subsequently amortizing them ratably over the term of the revolving debt arrangement. For the Company, ASU No. 2015-03 is effective January 1, 2016. The Company is currently assessing this standard's impact on the Company's results of operations and financial condition. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires entities to present deferred tax assets (DTAs) and deferred tax liabilities (DTLs), along with any related valuation allowance, as noncurrent in a balance sheet. This ASU eliminates current guidance requiring deferred taxes for each jurisdiction to be presented as a net current asset or liability and a net noncurrent asset or liability. As a result, each jurisdiction would have one net noncurrent DTA or DTL balance. The ASU does not change the existing requirement that only permits offsetting DTAs and DTLs within a particular jurisdiction. For the Company, this standard is effective January 1, 2017. The Company is currently assessing this standard's impact on the Company's results of operations and financial condition. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which revises the accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance requires the fair value measurement of investments in equity securities and other ownership interests in an entity, including investments in partnerships, unincorporated joint ventures and limited liability companies (collectively, equity securities) that do not result in consolidation and are not accounted for under the equity method. Entities will need to measure these investments and recognize changes in fair value in net income. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities they classify under current guidance as available for sale in other comprehensive income (OCI). They also will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. Instead, for these types of equity investments that do not otherwise qualify for the net asset value practical expedient, entities will be permitted to elect a practicability exception and measure the investment at cost less impairment plus or minus observable price changes (in orderly transactions). The ASU also establishes an incremental recognition and disclosure requirement related to the presentation of fair value changes of financial liabilities for which the fair value option (FVO) has been elected. Under this guidance, an entity would be required to separately present in OCI the portion of the total fair value change attributable to instrument-specific credit risk as opposed to reflecting the entire amount in earnings. For derivative liabilities for which the FVO has been elected, however, any changes in fair value attributable to instrument-specific credit risk would continue to be presented in net income, which is consistent with current guidance. For the Company, this standard is effective beginning January 1, 2018 via a cumulative-effect adjustment to beginning retained earnings, except for guidance relative to equity securities without readily determinable fair values which is applied prospectively. The Company is currently assessing this ASU's impacts on the Company's consolidated results of operations and financial condition. |
Going Concern
Going Concern | 12 Months Ended |
Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 2 – GOING CONCERN The Company has incurred losses since Inception resulting in an accumulated deficit of $1,531,886 as of December 31, 2015 that includes loss of $438,687 for the year ended December 31, 2015. and further losses are anticipated in the development of its business. Accordingly, there is substantial doubt about the Company's ability to continue as a 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 financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that could result from the outcome of this uncertainty. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses. The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management's efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern. |
Stockholders Deficit
Stockholders Deficit | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Stockholders Deficit | NOTE 3 – STOCKHOLDERS' DEFICIT Common Stock The Company has 100,000,000 shares of $.001 par value Common stock authorized as of December 31, 2015 and 2014. There were 36,342,747 and 24,560,583 shares outstanding as of December 31, 2015 and 2014, respectively. |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 4 – COMMITMENTS The Company rents office space for its main office at 871 Venetia Bay Blvd Suite #220-230 Venice, FL 34285 Monthly rent for this space is $50.00. All conditions have been met and paid by the company. In 2015, the Company signed "Investor and Royalty and Agreement" with 3 individuals. With the capital contributed by the 3 individuals, the Company agrees to 1. Pay the investor monthly residuals of 4.25% to 5% per month on the gross revenue after expenses generated by the Company's "primary platform" in conjunction with the Company's "TurnScor Card" 2. Pay the investor a residual in perpetuity on 2% to 5% of all "sub platform" revenue generated. 3. Issue the investor 1,000,000 common stock purchase warrants (500,000 one year warrants with $0.05 exercise price; 250,000 two year warrants with $0.05 exercise; 250,000 three year warrants with $0.1 exercise price) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 5 – RELATED PARTY TRANSACTIONS Related Party Loans Payable The following is a summary of related party loans payable: December 31, 2015 December 31, 2014 Liabilities Due to related parties $ 0 $ 5,524 Notes payable to related parties $ 30,500 $ 30,500 Note Payable to Related Parties On December 29, 2014, the Company, the Company entered into a promissory note with a shareholder in the amount of $35,000. The promissory notes is with flat interest of $9,500 payable on maturity date and $167 a day after maturity date. The maturity date is 120 days after issuance of the note. The note is currently default on December 31, 2015. The unpaid principle of the note is $30,500 on December 31, 2015 and 2014. Interest expense of the note is $50,249 and $0 for the years ended December 31, 2015 and 2014, respectively. The Company also issued stock option to the note holder to purchase 250,000 shares of the Company's common stock at $0.25 per share one year from the issuance date of the promissory note. The fair value of the option grant estimated on the date of grant is $0 based on the Black-Scholes option-pricing model. Due to Related Parties Officer and shareholder of the Company advanced to the Company for operating use. The total amount owed as of December 31, 2015 and December 31, 2014 are $191,400 and $195,784, respectively... |
Convertible Notes - Stockholder
Convertible Notes - Stockholders | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Notes Payable | NOTE 6 – CONVERTIBLE NOTES-STOCKHOLDERS On September 14, 2015, the Company issued a $10,000 convertible notes due on March 12, 2016 to its stockholder. The note bears no interest and is convertible to 125,000 shares at the rate of $0.08 per share per the terms of the note. There was a beneficial conversion feature associated with the note. The value of beneficial conversion feature is $1,250 and book as additional paid in capital. The interest resulting from amortization of discount on notes is 729 for the year ended December 31, 2015 On September 18, 2015, the Company issued a $8,990 convertible notes due on March 16, 2016 to its stockholder. The note bears no interest and is convertible to 112,375 shares at the rate of $0.08 per share per the terms of the note. There was a beneficial conversion feature associated with the note. The value of beneficial conversion feature is $2,248 and book as additional paid in capital. The interest resulting from amortization of discount on notes is 1,311 for the year ended December 31, 2015 On October 14, 2015, the Company issued a $8,000 convertible notes due on April 11, 2016 to its stockholder. The note bears no interest and is convertible to 80,000 shares at the rate of $0.1 per share per the terms of the note. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 7 – INCOME TAXES At December 31, 2015, the Company had available federal and state net operating loss carry forwards to reduce future taxable income. The amount available was approximately$1,531,886 federal and state purposes. The federal and state net operating loss carry forwards begin to expire in 2028 . FASB ASC Topic 740 – Income Taxes (formerly SFAS 109) requires that the Company establish a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized. Due to restrictions imposed by Internal Revenue Code Section 382 regarding substantial changes in ownership of companies with net operating loss carry forwards, the utilization of the Company's net operating loss carry forwards will likely be limited as a result of cumulative changes in stock ownership. The Company has not recognized a deferred asset and, as a result, the change in stock ownership will not result in any change to the valuation allowances. Upon the attainment of taxable income by the Company, management will assess the likelihood of realizing the tax benefit associated with the use of the carry forwards and will recognize a deferred tax asset at that time. The provision for Federal income tax consists of the following: For the Year Ended December 31, 2015 2014 Federal income tax benefit attributable to: Current operations $ 149,154 $ 64,224 Less: valuation Allowance (149,154 ) (64,224 ) Net provision for Federal income taxes $ - $ - The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows: December 31 December 31 2015 2014 Deferred tax assets attributable to: Net operating loss carryover $ 520,841 $ 371,688 Less: valuation Allowance (520,841 ) (371,688 ) Net deferred tax assets $ - $ - The Company files income tax returns in the U.S. federal jurisdiction and various states. The Company is subject to U.S. federal or state income tax examinations by tax authorities for five years after 2008. During the periods open to examination, the Company has net operating loss and tax credit carry forwards for U.S. federal and state tax purposes that have attributes from closed periods. Since these NOL's and tax credit carry forwards may be utilized in future periods, they remain subject to examination. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 8 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the date financial statements were issued No events have occurred subsequent to December 31, 2015 that require disclosure or recognition in these financial statements. |
Summary of Significant Accoun15
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business On February 25, 2008, Advanced Credit Technologies, Inc. (the "Company") was incorporated in the State of Nevada. Advanced Credit Technologies, Inc. provides a state of the art credit management platform that is a web based delivery system. Industries that benefit from the Company's technology include realtors, auto dealers and loan originators. |
Basis of Presentation | Basis of Presentation Our financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("US GAAP"). |
Reclassification | Reclassification Certain reclassifications have been made to conform previously reported data to the current presentation. These reclassifications have no effect on our net income (loss) or financial position as previously reported. |
Use of Estimates | Use of Estimates In preparing these financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses during the year reported. Actual results may differ from these estimates. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company's estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents are comprised of certain highly liquid investments with maturities of three months or less when purchased. The Company maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. The Company has not experienced any losses related to this concentration of risk. As of December 31, 2015 and 2014, the Company had $0 in deposits in excess of federally-insured limits. |
Research and Development, Software Development Costs and Internal Use Software Development Costs | Research and Development, Software Development Costs, and Internal Use Software Development Costs Research and development costs are charged to operations as incurred. Software development costs are accounted for in accordance with ASC Topic No. 985. Software development costs are capitalized once technological feasibility of a product is established and such costs are determined to be recoverable. For products where proven technology exists, this may occur very early in the development cycle. Factors we consider in determining when technological feasibility has been established include (i) whether a proven technology exists; (ii) the quality and experience levels of the individuals developing the software; (iii) whether the software is similar to previously developed software which has used the same or similar technology; and (iv) whether the software is being developed with a proven underlying engine. Technological feasibility is evaluated on a product-by-product basis. Capitalized costs for those products that are canceled or abandoned are charged immediately to cost of sales. The recoverability of capitalized software development costs is evaluated on the expected performance of the specific products for which the costs relate. Internal use software development costs are accounted for in accordance with ASC Topic No. 350 which requires the capitalization of certain external and internal computer software costs incurred during the application development stage. The application development stage is characterized by software design and configuration activities, coding, testing and installation. Training costs and maintenance are expensed as incurred, while upgrades and enhancements are capitalized if it is probable that such expenditures will result in additional functionality. In accounting for website software development costs, we have adopted the provisions of ASC Topic No. 350. ASC Topic No. 350 provides that certain planning and training costs incurred in the development of website software be expensed as incurred, while application development stage costs are to be capitalized. During the years ending December 31, 2015 and 2014, we expensed $192,610 and $67,425 expenditure on research and development for the years ending December 31, 2015 and 2014, respectively. During the years ending December 31, 2015 and 2014, we have capitalized external and internal use software and website development costs totaling $-0- and $-0-, respectively. The estimated useful life of costs capitalized is evaluated for each specific project and ranges from one to three years. |
Advertising Expenses | Advertising Expenses Advertising costs are expensed as incurred. Advertising expenses included in the Statement of Operations for the years ending December 31, 2015 and 2014 is $0 and $0, respectively. |
Fixed Assets | Fixed Assets The Company records its fixed assets at historical cost. The Company expenses maintenance and repairs as incurred. Upon disposition of fixed assets, the gross cost and accumulated depreciation are written off and the difference between the proceeds and the net book value is recorded as a gain or loss on sale of assets. The Company depreciates its fixed assets over their respective estimated useful lives ranging from 3 to 5 years. |
Intangible and Long-Lived Assets | Intangible and Long-Lived Assets The Company follows FASB ASC 360-10, "Property, Plant, and Equipment," |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when it has persuasive evidence of an arrangement, delivery has occurred, the sales price is fixed and determinable, and collectability is reasonably assured. Determining whether some or all of these criteria have been met involves assumptions and judgments that can have a significant impact on the timing and amount of revenue the Company reports. |
Fair Value Measurements | Fair Value Measurements For certain financial instruments, including accounts receivable, accounts payable, accrued expenses, interest payable, advances payable and notes payable, the carrying amounts approximate fair value due to their relatively short maturities. The Company has adopted FASB ASC 820-10, “Fair Value Measurements and Disclosures.” ● Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets. ● Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement. The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value in accordance with FASB ASC 815. In February 2007, the FASB issued FAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities,” “Financial Instruments.” |
Segment Reporting | Segment Reporting FASB ASC 280, "Segment Reporting" |
Income Taxes | Income Taxes Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment. 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. 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 is reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations. |
Earnings per share | Earnings (Loss) Per Share Earnings per share is calculated in accordance with the FASB ASC 260-10, "Earnings Per Share." Basic earnings (loss) per share is based upon the weighted average number of common shares outstanding. Diluted earnings (loss) per share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. At December 31, 2015 and 2014, no potentially dilutive shares were outstanding. The computation of earnings per share of common stock is based on the weighted average number of shares outstanding at the date of the financial statements. |
Stock Based Compensation | Stock Based Compensation The Company adopted FASB ASC Topic 718 – Compensation – Stock Compensation (formerly SFAS 123R), which establishes the use of the fair value based method of accounting for stock-based compensation arrangements under which compensation cost is determined using the fair value of stock-based compensation determined as of the date of grant and is recognized over the periods in which the related services are rendered. For stock based compensation the Company recognizes an expense in accordance with FASB ASC Topic 718 and values the equity securities based on the fair value of the security on the date of grant. Stock option awards are valued using the Black-Scholes option-pricing model. The Company accounts for stock issued to non-employees where the value of the stock compensation is based upon the measurement date as determined at either (a) the date at which a performance commitment is reached, or (b) at the date at which the necessary performance to earn the equity instruments is complete. As there is no trading history during the periods of February 2008 through December 31, 2012 and the Company securities were not offered to the public, the Company had determined that the fair value of its stock is the price paid when it raises funds. There was 493,750 shares issued for compensation in 2014. There were no shares issued for services for the year 2015. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In April 2015, the FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs, and in August 2015 issued ASU No. 2015-15, Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. Under ASU 2015-03, debt issuance costs reported on the consolidated balance sheet would be reflected as a direct deduction from the related debt liability rather than as an asset. While ASU 2015-03 addresses costs related to term debt, ASU No. 2015-15 provides clarification regarding costs to secure revolving lines of credit, which are, at the outset, not associated with an outstanding borrowing. ASU No. 2015-15 provides commentary that the SEC staff would not object to an entity deferring and presenting costs associated with line-of-credit arrangements as an asset and subsequently amortizing them ratably over the term of the revolving debt arrangement. For the Company, ASU No. 2015-03 is effective January 1, 2016. The Company is currently assessing this standard's impact on the Company's results of operations and financial condition. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes, which requires entities to present deferred tax assets (DTAs) and deferred tax liabilities (DTLs), along with any related valuation allowance, as noncurrent in a balance sheet. This ASU eliminates current guidance requiring deferred taxes for each jurisdiction to be presented as a net current asset or liability and a net noncurrent asset or liability. As a result, each jurisdiction would have one net noncurrent DTA or DTL balance. The ASU does not change the existing requirement that only permits offsetting DTAs and DTLs within a particular jurisdiction. For the Company, this standard is effective January 1, 2017. The Company is currently assessing this standard's impact on the Company's results of operations and financial condition. In January 2016, the FASB issued ASU No. 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities, which revises the accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. The new guidance requires the fair value measurement of investments in equity securities and other ownership interests in an entity, including investments in partnerships, unincorporated joint ventures and limited liability companies (collectively, equity securities) that do not result in consolidation and are not accounted for under the equity method. Entities will need to measure these investments and recognize changes in fair value in net income. Entities will no longer be able to recognize unrealized holding gains and losses on equity securities they classify under current guidance as available for sale in other comprehensive income (OCI). They also will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. Instead, for these types of equity investments that do not otherwise qualify for the net asset value practical expedient, entities will be permitted to elect a practicability exception and measure the investment at cost less impairment plus or minus observable price changes (in orderly transactions). The ASU also establishes an incremental recognition and disclosure requirement related to the presentation of fair value changes of financial liabilities for which the fair value option (FVO) has been elected. Under this guidance, an entity would be required to separately present in OCI the portion of the total fair value change attributable to instrument-specific credit risk as opposed to reflecting the entire amount in earnings. For derivative liabilities for which the FVO has been elected, however, any changes in fair value attributable to instrument-specific credit risk would continue to be presented in net income, which is consistent with current guidance. For the Company, this standard is effective beginning January 1, 2018 via a cumulative-effect adjustment to beginning retained earnings, except for guidance relative to equity securities without readily determinable fair values which is applied prospectively. The Company is currently assessing this ASU's impacts on the Company's consolidated results of operations and financial condition. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party loans payable | December 31, 2015 December 31, 2014 Liabilities Due to related parties $ 0 $ 5,524 Notes payable to related parties $ 30,500 $ 30,500 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Provision for income taxes | For the Year Ended December 31, 2015 2014 Federal income tax benefit attributable to: Current operations $ 149,154 $ 64,224 Less: valuation Allowance (149,154 ) (64,224 ) Net provision for Federal income taxes $ - $ - |
Deferred Tax Assets | December 31 December 31 2015 2014 Deferred tax assets attributable to: Net operating loss carryover $ 520,841 $ 371,688 Less: valuation Allowance (520,841 ) (371,688 ) Net deferred tax assets $ - $ - |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Research and Developement Costs | $ 192,610 | $ 67,425 |
Web Development Costs | 0 | 0 |
Deposits in Excess of federally-insured limits | 0 | 0 |
Advertising Expenses | 0 | $ 0 |
Stock based compensation | $ 493,750 |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Details 2) | 12 Months Ended |
Dec. 31, 2015 | |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful Life of Fixed Assets | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful Life of Fixed Assets | 5 years |
Summary of Significant Accoun20
Summary of Significant Accounting Policies - Computation of Earnings per share of common stock (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Basic and diluted EPS | $ (0.02) | $ (0.01) |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accumulated deficit | $ (1,531,886) | $ (1,093,199) |
Net loss | $ (438,687) | $ (188,895) |
Stockholders Deficit (Details N
Stockholders Deficit (Details Narrative) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Equity [Abstract] | ||
Common stock - par value | $ 0.001 | $ 0.001 |
Common stock - shares authorized | 100,000,000 | 100,000,000 |
Common stock - shares issued | 36,342,747 | 22,061,498 |
Commitments (Details Narrative)
Commitments (Details Narrative) | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Monthly rent | $ | $ 50 |
Commitment #1 [Member] | |
Royalty Fee Minimum | 4.25% |
Royalty Fee Maximum | 5.00% |
Commitment #2 [Member] | |
Royalty Fee Minimum | 2.00% |
Royalty Fee Maximum | 5.00% |
Commitment #3 [Member] | |
Common stock purchase warrants | 1,000,000 |
Commitment #3 [Member] | One Year [Member] | |
Common stock purchase warrants | 500,000 |
Exercise price | $ / shares | $ 0.05 |
Commitment #3 [Member] | Two Year [Member] | |
Common stock purchase warrants | 250,000 |
Exercise price | $ / shares | $ 0.05 |
Commitment #3 [Member] | Three Year [Member] | |
Common stock purchase warrants | 250,000 |
Exercise price | $ / shares | $ 0.1 |
Related Party Transactions - Re
Related Party Transactions - Related Party loans payable (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transactions [Abstract] | ||
Due to related parties | $ 0 | $ 5,524 |
Notes payable to related parties | $ 30,500 | $ 30,500 |
Notes Payable to Related Partie
Notes Payable to Related Parties (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||
Loans Payable- stockholders | $ 191,400 | $ 195,784 |
Promissory Note [Member] | ||
Debt Instrument [Line Items] | ||
Date of note | Dec. 29, 2014 | |
Promissory Note | $ 35,000 | |
Interest | $ 9,500 | |
Interest terms after maturity | $167 a day after maturity date | |
Notes payable - related party | $ 30,500 | |
Interest Expense | $ 50,249 | $ 0 |
Stock options | 250,000 | |
Share price | $ 0.25 | |
Fair value of option grant | $ 0 |
Convertible Notes - Stockhold26
Convertible Notes - Stockholders (Details) | 12 Months Ended |
Dec. 31, 2015USD ($)$ / sharesshares | |
Beneficial Conversion Feature | $ 3,498 |
Convertible note 1 [Member] | |
Issue date | Sep. 14, 2015 |
Issue amount | $ 10,000 |
Maturity date | Mar. 12, 2016 |
Convertible shares | shares | 125,000 |
Convertible share price | $ / shares | $ 0.08 |
Beneficial Conversion Feature | $ 1,250 |
Interest expense | $ 729 |
Convertible note 2 [Member] | |
Issue date | Sep. 18, 2015 |
Issue amount | $ 8,990 |
Maturity date | Mar. 16, 2016 |
Convertible shares | shares | 112,375 |
Convertible share price | $ / shares | $ 0.08 |
Beneficial Conversion Feature | $ 2,248 |
Interest expense | $ 1,311 |
Convertible note 3 [Member] | |
Issue date | Dec. 14, 2015 |
Issue amount | $ 8,000 |
Maturity date | Apr. 11, 2016 |
Convertible shares | shares | 80,000 |
Convertible share price | $ / shares | $ 0.1 |
Income Tax Provision (Details)
Income Tax Provision (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Provision Details | ||
Federal income tax benefit attributable to: Current Operations | $ 149,154 | $ 64,224 |
Less: valuation Allowance | $ (149,154) | $ (64,224) |
Net provision for Federal income taxes |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred income tax asset: | ||
Net operating loss carryover | $ 520,841 | $ 371,688 |
Less: Valuation allowance | $ (520,841) | $ (371,688) |
Net deferred tax asset |