Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 14, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | ADVANCED CREDIT TECHNOLOGIES INC | |
Entity Central Index Key | 0001437517 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business Flag | true | |
Entity Emerging Growth Company | false | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 67,730,515 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets | ||
Cash | $ 50,823 | $ 21,009 |
Accounts Receivable | 50,300 | |
Commitment Receivable | 9,000 | |
Total Current Assets | 101,123 | 30,009 |
Fixed Assets | ||
Software and Computer Equipment, Net | 505,748 | 550,679 |
Total Fixed Assets | 505,748 | 550,679 |
Total Assets | 606,871 | 580,688 |
Current Liabilities | ||
Accounts Payable and Accrued Expenses | 19,856 | 9,851 |
Deposits | 25,000 | |
Customer Prepayments | 27,087 | 39,585 |
Loans Payable - Stockholders | 35,000 | 45,000 |
Total Current Liabilities | 106,943 | 94,436 |
Total Liabilities | 106,943 | 94,436 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock: $0.001 par value,100,000,000 shares authorized; 67,580,515 and 65,830,515 shares issued and outstanding as of June 30, 2019 and December 31, 2018 respectively | 67,581 | 65,831 |
Preferred Stock $0.001 per value - 30,000 shares authorized; issued and outstanding as of June 30, 2019 and December 31, 2018, respectively | 30 | 30 |
Shares to be Issued: 3,333,333 and 3,483,333 common shares as of June 30, 2019 and December 31, 2018, respectively | 300,000 | 348,000 |
Stock Subscription Receivable | (50,000) | (150,000) |
Additional Paid in Capital | 4,093,922 | 3,884,102 |
Accumulated Deficit | (3,911,605) | (3,661,711) |
Total Stockholders' Equity | 499,928 | 486,252 |
Total Liabilities and Stockholders' Equity | $ 606,871 | $ 580,688 |
Consolidated Condensed Balanc_2
Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
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 | 67,580,515 | 65,830,515 |
Common stock, shares outstanding | 67,580,515 | 65,830,515 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 30,000 | 30,000 |
Preferred stock, shares issued | 30,000 | 30,000 |
Preferred stock, shares outstanding | 30,000 | 30,000 |
Common shares to be issued | 3,333,333 | 3,483,333 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue | ||||
Service Revenue | $ 66,606 | $ 72,855 | ||
Total Revenue | 66,606 | 72,855 | ||
Operational Expense | ||||
Sales Commissions | 9,941 | 9,941 | ||
Professional Fees | 16,486 | 15,734 | 44,191 | 44,548 |
Research | 5,165 | 6,193 | 1,500 | |
Stock Compensation | 9,285 | 29,751 | 18,570 | 59,503 |
Officer's Compensation | 67,500 | 67,500 | 135,000 | 137,489 |
Travel and Entertainment | 19,578 | 8,215 | 25,055 | 23,910 |
Rent | 150 | 225 | 300 | 375 |
Depreciation | 30,669 | 30,013 | 60,681 | 60,025 |
Computer and Internet | 6,300 | 1,648 | 9,774 | 3,658 |
Office Supplies and Expenses | 2,046 | 1,444 | 2,830 | 3,320 |
Other Operating Expenses | 6,381 | 2,534 | 10,114 | 15,084 |
Total Operating Expenses | 173,501 | 157,064 | 322,649 | 349,412 |
Loss from Operations | (106,895) | (157,064) | (249,794) | (349,412) |
Other Income (Expense) | ||||
Gain (Loss) of Settlement of Debt | (12,000) | |||
Interest | (15) | (313) | (100) | (313) |
Total Other Income (Expenses) | (15) | (313) | (100) | (12,313) |
Provision for Income Taxes | ||||
Net Loss | $ (106,910) | $ (157,377) | $ (249,894) | $ (361,725) |
Loss per common share-Basic and diluted | $ (0.002) | $ (0.002) | $ 0 | $ (0.006) |
Weighted Average Number of Common Shares Outstanding Basic and diluted | 67,016,348 | 63,180,885 | 66,804,556 | 63,052,145 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock (Issued) [Member] | Common Stock (Unissued) [Member] | Preferred Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2017 | $ 61,982 | $ 12,000 | $ 30 | $ 3,141,639 | $ (2,621,252) | $ 594,399 |
Balance, shares at Dec. 31, 2017 | 61,982,181 | 150,000 | 30,000 | |||
Proceeds from Issuance of Common Stock | $ 1,000 | 99,000 | 100,000 | |||
Proceeds from Issuance of Common Stock, shares | 1,000,000 | |||||
Warrants Issued for Services | 29,753 | 29,753 | ||||
Shares issued for conversion of debt | $ 61 | 17,939 | 18,000 | |||
Shares issued for conversion of debt, shares | 60,000 | |||||
Unissued Common Stock | ||||||
Unissued Common Stock, shares | ||||||
Shares issued for services | ||||||
Shares issued for services, shares | ||||||
Options Issued for Services | ||||||
Stock subscriptions | ||||||
Net loss | (204,348) | (204,348) | ||||
Balance at Mar. 31, 2018 | $ 63,043 | $ 12,000 | $ 30 | 3,288,331 | (2,825,600) | 537,804 |
Balance, shares at Mar. 31, 2018 | 63,042,181 | 150,000 | 30,000 | |||
Balance at Dec. 31, 2017 | $ 61,982 | $ 12,000 | $ 30 | 3,141,639 | (2,621,252) | 594,399 |
Balance, shares at Dec. 31, 2017 | 61,982,181 | 150,000 | 30,000 | |||
Net loss | (361,725) | |||||
Balance at Jun. 30, 2018 | $ 63,375 | $ 30 | 3,349,749 | (2,982,977) | 430,177 | |
Balance, shares at Jun. 30, 2018 | 63,375,515 | 30,000 | ||||
Balance at Dec. 31, 2017 | $ 61,982 | $ 12,000 | $ 30 | 3,141,639 | (2,621,252) | 594,399 |
Balance, shares at Dec. 31, 2017 | 61,982,181 | 150,000 | 30,000 | |||
Balance at Dec. 31, 2018 | $ 65,831 | $ 198,000 | $ 30 | 3,884,102 | (3,661,711) | 486,252 |
Balance, shares at Dec. 31, 2018 | 65,830,515 | 30,000 | ||||
Balance at Mar. 31, 2018 | $ 63,043 | $ 12,000 | $ 30 | 3,288,331 | (2,825,600) | 537,804 |
Balance, shares at Mar. 31, 2018 | 63,042,181 | 150,000 | 30,000 | |||
Proceeds from Issuance of Common Stock | $ 182 | 19,817 | 19,999 | |||
Proceeds from Issuance of Common Stock, shares | 183,334 | |||||
Warrants Issued for Services | 29,751 | 29,751 | ||||
Shares issued for conversion of debt | $ 150 | $ (12,000) | 11,850 | |||
Shares issued for conversion of debt, shares | 150,000 | (150,000) | ||||
Unissued Common Stock | ||||||
Unissued Common Stock, shares | ||||||
Shares issued for services | ||||||
Shares issued for services, shares | ||||||
Options Issued for Services | ||||||
Stock subscriptions | ||||||
Net loss | (157,377) | (157,377) | ||||
Balance at Jun. 30, 2018 | $ 63,375 | $ 30 | 3,349,749 | (2,982,977) | 430,177 | |
Balance, shares at Jun. 30, 2018 | 63,375,515 | 30,000 | ||||
Proceeds from Issuance of Common Stock | $ 2,020 | 199,980 | 202,000 | |||
Proceeds from Issuance of Common Stock, shares | 2,020,000 | |||||
Warrants Issued for Services | 9,285 | 9,285 | ||||
Shares issued for conversion of debt | ||||||
Shares issued for conversion of debt, shares | ||||||
Unissued Common Stock | $ 100,000 | 100,000 | ||||
Unissued Common Stock, shares | ||||||
Shares issued for services | $ 436 | 82,864 | 83,300 | |||
Shares issued for services, shares | 435,000 | |||||
Options Issued for Services | 203,536 | 203,536 | ||||
Stock subscriptions | ||||||
Net loss | (473,623) | (473,623) | ||||
Balance at Sep. 30, 2018 | $ 65,831 | $ 100,000 | $ 30 | 3,845,414 | (3,456,600) | 554,675 |
Balance, shares at Sep. 30, 2018 | 65,830,515 | 30,000 | ||||
Proceeds from Issuance of Common Stock | ||||||
Proceeds from Issuance of Common Stock, shares | ||||||
Warrants Issued for Services | 9,285 | 9,285 | ||||
Shares issued for conversion of debt | ||||||
Shares issued for conversion of debt, shares | ||||||
Unissued Common Stock | $ (150,000) | (150,000) | ||||
Unissued Common Stock, shares | ||||||
Shares issued for services | $ 48,000 | 48,000 | ||||
Shares issued for services, shares | ||||||
Options Issued for Services | 29,403 | 29,403 | ||||
Stock subscriptions | 200,000 | 200,000 | ||||
Net loss | (205,111) | (205,111) | ||||
Balance at Dec. 31, 2018 | $ 65,831 | $ 198,000 | $ 30 | 3,884,102 | (3,661,711) | 486,252 |
Balance, shares at Dec. 31, 2018 | 65,830,515 | 30,000 | ||||
Proceeds from Issuance of Common Stock | $ 200 | 19,800 | 20,000 | |||
Proceeds from Issuance of Common Stock, shares | 200,000 | |||||
Warrants Issued for Services | 9,285 | 9,285 | ||||
Shares issued for conversion of debt | ||||||
Shares issued for conversion of debt, shares | ||||||
Unissued Common Stock | ||||||
Unissued Common Stock, shares | ||||||
Shares issued for services | ||||||
Shares issued for services, shares | ||||||
Options Issued for Services | ||||||
Stock subscriptions | 75,000 | 75,000 | ||||
Net loss | (142,984) | (142,984) | ||||
Balance at Mar. 31, 2019 | $ 66,031 | $ 273,000 | $ 30 | 3,913,187 | (3,804,695) | 447,553 |
Balance, shares at Mar. 31, 2019 | 66,030,515 | 30,000 | ||||
Balance at Dec. 31, 2018 | $ 65,831 | $ 198,000 | $ 30 | 3,884,102 | (3,661,711) | 486,252 |
Balance, shares at Dec. 31, 2018 | 65,830,515 | 30,000 | ||||
Net loss | (249,894) | |||||
Balance at Jun. 30, 2019 | $ 67,581 | $ 250,000 | $ 30 | 4,093,922 | (3,911,605) | 499,928 |
Balance, shares at Jun. 30, 2019 | 67,580,515 | 30,000 | ||||
Balance at Mar. 31, 2019 | $ 66,031 | $ 273,000 | $ 30 | 3,913,187 | (3,804,695) | 447,553 |
Balance, shares at Mar. 31, 2019 | 66,030,515 | 30,000 | ||||
Proceeds from Issuance of Common Stock | $ 1,250 | 123,750 | 125,000 | |||
Proceeds from Issuance of Common Stock, shares | 1,250,000 | |||||
Warrants Issued for Services | 9,285 | 9,285 | ||||
Shares issued for conversion of debt | ||||||
Shares issued for conversion of debt, shares | ||||||
Unissued Common Stock | ||||||
Unissued Common Stock, shares | ||||||
Shares issued for services | $ 300 | $ (48,000) | 47,700 | |||
Shares issued for services, shares | 300,000 | |||||
Options Issued for Services | ||||||
Stock subscriptions | 25,000 | 25,000 | ||||
Net loss | (106,910) | (106,910) | ||||
Balance at Jun. 30, 2019 | $ 67,581 | $ 250,000 | $ 30 | $ 4,093,922 | $ (3,911,605) | $ 499,928 |
Balance, shares at Jun. 30, 2019 | 67,580,515 | 30,000 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES | ||||||||||
Net loss | $ (106,910) | $ (142,984) | $ (205,111) | $ (473,623) | $ (157,377) | $ (204,348) | $ (249,894) | $ (361,725) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||||
Gain (Loss) of Settlement of Debt | 12,000 | $ (151,324) | ||||||||
Depreciation | 30,669 | 30,013 | 60,681 | 60,025 | ||||||
Stock Compensation | 9,285 | 29,751 | 18,570 | 59,503 | ||||||
Change in Operating Assets and Liabilities: | ||||||||||
Advanced Commissions | (1,646) | |||||||||
Accounts Receivable | (50,300) | |||||||||
Commitment Receivable | 9,000 | |||||||||
Accounts Payable and Accrued Expenses | 10,005 | 17,672 | ||||||||
Deposits | 25,000 | |||||||||
Customer Prepayments | (12,498) | 6,832 | ||||||||
Net Cash Used in Operating Activities | (189,436) | (207,339) | ||||||||
INVESTING ACTIVITIES | ||||||||||
Software | (15,750) | |||||||||
Net cash provided by (used) in investing activities | (15,750) | |||||||||
FINANCING ACTIVITIES | ||||||||||
Proceeds from Common Stock Issuance | 145,000 | 120,000 | ||||||||
Proceeds from Common Stock to be Issued | 100,000 | |||||||||
Repayment of Note Principal | (10,000) | (25,000) | ||||||||
Net Cash Provided by Financing Activities | 235,000 | 95,000 | ||||||||
Net Increase (Decrease) in Cash and Equivalents | 29,814 | (112,339) | ||||||||
Cash and Equivalents at Beginning of the Period | $ 21,009 | $ 460 | $ 112,799 | 21,009 | 112,799 | $ 112,799 | ||||
Cash and Equivalents at End of the Period | $ 50,823 | $ 21,009 | $ 460 | 50,823 | 460 | $ 21,009 | $ 112,799 | |||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||
Interest Paid | (100) | 313 | ||||||||
Income Taxes Paid | ||||||||||
NON-CASH DISCLOSURES | ||||||||||
Company issued 60,000 shares of Stock for payment of $6,000 accrued expenses | $ 6,000 |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Cash Flows (Unaudited) (Parenthetical) | 6 Months Ended |
Jun. 30, 2018USD ($)shares | |
Statement of Cash Flows [Abstract] | |
Stock issued for payment | shares | 60,000 |
Payment for accrued expenses | $ | $ 6,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Nature of Business ACRT (“the Company’s TurnScor® and CyberloQ™ products”, “We” or the “Company”) is a development-stage technology company focused on fraud prevention and credit management. The Company was incorporated in the State of Nevada on February 25, 2008. The Company offers a proprietary software platform branded as CyberloQ™ . While previously the Company licensed CyberloQ, in the third quarter of 2017, the Company acquired the CyberloQ technology and is now the exclusive owner of CyberloQ. The CyberloQ Vault is a “cloud based’ security protocol that allows clients the ability to send/receive secure DATA without having to use traditional e-mail which is prone to a breach. This CyberloQ service uses CLOUD BASED encryption and a secure web portal to send/receive confidential DATA, the SENDER and RECEIVER both must have authenticated their position within the prescribed GEO coordinates as well as authenticate their mobile devices prior to SENDING/RECEIVING any DATA. Thus rendering a hack or breach utterly useless for the encrypted DATA is unusable without the CyberloQ authentication component. In addition to CyberloQ, the Company offers a web-based proprietary software platform under the brand name Turnscor® which allows customers to monitor and manage their credit from the privacy of their own homes. Although individuals can sign-up for Turnscor on their own, the Company also intends to market Turnscor to certain institutional clients, where appropriate, in conjunction with CyberloQ as a value-added benefit to offer their customers. On June 15, 2017, the Company created a private limited company in the United Kingdom named CyberloQ Technologies LTD. CyberloQ Technologies LTD is a wholly-owned subsidiary of the Company, and any business that the Company has in the United Kingdom will be transacted through CyberloQ Technologies LTD. However, to date CyberloQ Technologies LTD has not had any operating activity or generated any revenue for the Company. Basis of Presentation The financial statements of the Company have been prepared using the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America and the rules of the Securities and Exchange Commission. All amounts are presented in U.S. dollars. The Company has adopted a December 31 fiscal year end. Certain information and note disclosures normally included in our annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated financial statements should be read in conjunction with a reading of the financial statements and notes thereto included in our Annual Report on From 10-K for the fiscal year ended December 31, 2018, as filed with the U.S. Securities and Exchange Commission. Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned or controlled operating subsidiaries. All intercompany accounts and transactions have been eliminated. 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. As of June 30, 2019 and December 31, 2018, the Company had no deposits in excess of federally-insured limits. Research and Development, Software Development Costs, and Internal Use Software Development Costs 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 periods ending June 30, 2019 and 2018, we expensed $6,193 and $1,500, respectively, for expenditures on research and development. None was paid to related parties. Fixed Assets, Intangibles and Long-Lived 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 three to fifteen years. The Company follows FASB ASC 360-10, “Property, Plant, and Equipment,” Revenue Recognition Effective January 1, 2018, the Company adopted the requirements of ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 Revenue Recognition Policy Under ASC 606, the Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. To achieve the core principle of ASC 606, the Company performs the following steps: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) we satisfy a performance obligation. The Company derives its revenue from two sources: (1) subscription revenues, which are comprised of subscription fees from customers utilizing the Company’s TurnScor®, CyberloQ™ and CyberloQ Vault products and from customers purchasing additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services and other revenue, which consists primarily of certain performance obligations related to set-up, ingestion, consulting and training fees. The Company’s subscription arrangements provide customers the right to access the Company’s hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. As of June 30, 2019, the Company had $0 in contract assets, as well as a contract liability of $37,087 to perform on contracts. As of December 31, 2018, the Company has $0 in contract assets, however there was a commitment receivable of $9,000 from a customer’s non-refundable two year (beginning August 28, 2018) service contract, as well as a contract liability of $39,585 to perform on that contract as of December 31, 2018. The contract liability will be reduced by $2,083 per month as the Company provides a non-exclusive, non-transferable license to use the CyberloQ Vault Services for the customer’s internal purposes and earns and recognizes related revenue. Contract Asset Contract Liability December 31, 2018 $ 0 $ 39,585 Less: revenue earned and recognized - (12,498 ) June 30, 2019 $ 0 $ 27,087 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” Advertising Advertising costs are expensed as incurred. Advertising expense for the periods ended June 30, 2019 and 2018 were $4,769 and $11,418, respectively. Income Taxes Deferred income taxes are provided using the liability method (in accordance with ASC 740) 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. The Company is not aware of uncertain tax positions. 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 June 30, 2019 and December 31, 2018 the Company has 500,000 and 1,125,000 warrants as well as 1,200,000 and 1,200,000 options issued (respectively) that can be exercised and could be dilutive to the existing number of shares issued and outstanding. However, due to the Company’s periods of losses, the basic weighted average is equal to the diluted weighted average shares 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 and warrant awards are valued using the Black-Scholes option-pricing model, which according to ASC 820-10 is a level 3 value on the hierarchy. Black Scholes assumptions were calculated using stock price at grant date between $0.29 to $0.149; exercise prices between $0.15 to $0.20: life expectancy between ½ year to 5 years; and volatility ranging from 163% to 68%. Recent Accounting Pronouncements In July 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The amendments expand the scope of ASC 718, Compensation – Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees and to supersede the guidance in ASC 505-50, Equity-Based Payments to Non-Employees. The accounting for nonemployee awards will now be substantially the same as current guidance for employee awards. ASU 2018-07 impacts all entities that issue awards to nonemployees in exchange for goods or services to be used or consumed in the grantor’s own operations, as well as to nonemployees of an equity method investee that provide goods or services to the investee that are used or consumed in the investee’s operations. ASU 2018-07 aligns the measurement-date guidance for employee and nonemployee awards using the current employee model, meaning that the measurement date for nonemployee equity-classified awards generally will be the grant date, while liability-classified awards generally will be the settlement date. ASU 2018-07 is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has determined that there is no retroactive effect on its financial reports from the adoption of this standard. The Company adopted ASU 2018-07 on January 1, 2019. |
Fixed Assets
Fixed Assets | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | NOTE 2 – FIXED ASSETS Software and computer equipment, recorded at cost, consisted of the following: June 30, 2019 December 31, 2018 Software and computer equipment $ 736,500 $ 720,750 Less: accumulated depreciation (230,752 ) (170,071 ) Property and equipment, net $ 505,748 $ 550,679 Depreciation expense was $30,669 and $60,681; $30,013 and 60,025 for the three and six month periods ended June 30, 2019 and 2018, respectively. |
Going Concern
Going Concern | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | NOTE 3 – GOING CONCERN The Company has incurred losses since Inception resulting in an accumulated deficit of $3,911,605 as of June 30, 2019 that includes a loss of $106,910 for the quarter ended June 30, 2019. Further losses are anticipated in the development of its business. Accordingly, there is substantial doubt about the entity’s ability to continue as a going concern within one year after the financial statements are issued. 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. |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2019 | |
Deposits [Abstract] | |
Deposits | NOTE 4 – DEPOSITS The Company holds amounts payable to others as “deposits”, these include; $15,000 prepaid stock purchase whose stock subscription agreement is dated July 2019; $10,000 down payment from a customer to secure future services. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | NOTE 5 – STOCKHOLDERS’ EQUITY Common Stock The Company has 100,000,000 shares of $.001 par value common stock authorized as of June 30, 2019 and December 31, 2018. The Company has an agreement to issue 3,333,333 common shares for $300,000 by June 30, 2019. Currently, the Company has collected $250,000 towards that agreement, and is disclosing the full amount and the related 3,333,333 common shares as “To be Issued”. Once the remaining stock subscription of $50,000 is collected, the Company will issue the entire 3,333,333 common shares. In addition, the Company received a $15,000 deposit to purchase 150,000 shares of common stock which were subscribed and issued in July. During 2018, the Company received $322,000 in payment for 3,203,334 shares of common stock; received $83,300 in services for 435,000 shares of common stock. Also during the same period, the Company issued 60,000 shares of common stock in payment of $6,000 of accrued legal fees, recognizing a loss on settlement of debt of $12,000; also, the Company converted $12,000 of debt into 150,000 shares, these shares were previously recorded as “Shares to be Issued” in the Balance Sheet. There were 65,830,515 shares of common stock issued and outstanding as of December 31, 2018. During 2019, the Company received $145,000 in payment for 1,450,000 shares of common stock; issued 300,000 shares to officers in conjunction with their 2018 service agreement, which were previously recorded as “Shares to be Issued” in the balance sheet. There were 67,580,515 shares of common stock issued and outstanding as of June 30, 2019. Preferred Stock The Company did not have any preferred stock prior to 2017. In April of 2017, the Company amended its articles of incorporation to create a new class of stock designated Series A Super Voting Preferred Stock consisting of thirty-thousand (30,000) shares at par value of $0.001 per share. Certain rights, preferences, privileges and restrictions were established for the Series A Preferred Stock as follows: (a) the amount to be represented in stated capital at all times for each share of Series A Preferred Stock shall be its par value of $0.001 per share; (b) except as otherwise required by law, holders of shares of Series A Preferred Stock shall vote together with the common stock as a single class and the holders of Series A Preferred Stock shall be entitled to five-thousand (5,000) votes per share of Series A Preferred Stock; and (c) in the event of any liquidation, dissolution or winding-up of the Company, either voluntary or involuntary, the holders of the Series A Preferred Stock shall be entitled to receive, prior and in preference to any distribution of assets of the Corporation to the holders of the common stock, the original purchase price paid for the Series A Preferred Stock. All 30,000 shares of the Series A Super Voting Preferred Stock were issued in 2017. |
Commitments
Commitments | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | NOTE 6 – COMMITMENTS The Company rents office space on a month to month basis for its main office at 871 Venetia Bay Blvd Suite #202 Venice, FL 34285. Monthly rent for this space is $50. All conditions have been met and paid by the Company. In 2015, in conjunction with a proposed TurnScor Card platform, the Company signed Investor Royalty and Warrant Agreements with four parties. In exchange for the funds contributed by the four parties, the Company agreed to: 1. Pay the investors monthly residuals of 2.0% 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 investors a residual in perpetuity on 2% to 5% of all TurnScor Card sub-platform revenue generated; and 3. Issue warrants to investors all of which have either been exercised or expired. The Company does not plan to proceed with the TurnScor Card at this time. During fiscal year 2018, the Company wrote off $17,646 in advanced commissions paid to a sales person who dissolved their contractor agreement with the Company. The Company has commission agreements as follows: An agreement with a shareholder and officer of the Company stating that the executive will be entitled to a two-and-a half-percent (2.5%) commission of the gross revenue recorded by the Company for any customer contracts that are closed by the Company at the time of and during the duration of the agreement. These commissions are payable quarterly upon receipt of customer revenues. An agreement with an independent company granting that company a non-exclusive, non-transferable license to provide the CyberloQ Vault Services to its customers and the revenues derived will be divided 50/50 between that independent company and Advanced Credit Technologies Inc. An agreement with two sales managers granting each manager a 1% commission on the gross revenue of the Company. These commissions are payable quarterly upon receipt of customer revenues. A one year renewable agreement with an independent company granting that company a non-exclusive, non-transferable license to provide the CyberloQ Vault evention technology. (the “Technology”) Pursuant to the asset purchase agreement, the prior license agreement between the Services to a certain territory and for a defined term. The independent company will pay Advanced Credit Technologies, Inc. a monthly fee of $100. Advanced Credit Technologies will pay a commission of 90% less transaction fees. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 7 – RELATED PARTY TRANSACTIONS Acquisition of Cyberloq™ During 2017, the Company acquired the CyberloQ™ banking fraud prCompany and CartenTech LLC was terminated, and the Company is now the exclusive owner of the CyberloQ™ banking fraud prevention technology along with all intellectual property rights associated with the Technology which is copyrighted with the United States Copyright Office. The owner of CartenTech LLC is Mark Carten, who is also a director of ACRT and its Chief Technology Officer. On July 28, 2017, the Company purchased the Technology with a value of $720,000. As consideration for the acquisition of and all rights to the Technology, CartenTech LLC received: (a) payment of $50,000, (b) a note for $150,000, and (c) 4,000,000 shares of the Company’s common stock. The software is being depreciated over its useful life of six-years in conjunction with the Company’s depreciation policy. Issuance of Warrants/Options All warrants and options are fully vested and exercisable. The following is a summary of the warrants issued in connection with common stock: Date 11/30/15 11/30/15 6/28/16 Wtd. Avg. Life Wtd. Avg.Price Warrants 250,000 250,000 625,000 - Exercise price $ 0.15 $ 0.20 $ 0.20 - Expected life 4 year 5 year 3 year - Unexpired 12/31/18 250,000 250,000 625,000 3.667 years $ 0.1889 Unexpired 6/30/19 250,000 250,000 0 4.5 years $ 0.1750 The following is a summary of the options issued in connection with common stock: Date FY 2017 FY2018 Wtd. Avg. Life Wtd. Avg. Price Options 100,000 1,100,000 - Exercise price $ 0.15 $ 0.15 - Expected life 5 year 5 year - Unexpired 12/31/18 100,000 1,100,000 5 years $ 0.15 Unexpired 6/30/19 100,000 1,100,000 5 years $ 0.15 In 2016 and 2017, Rex Schuette, one of the Company’s directors, was issued two warrants to potentially acquire a total of 1,250,000 additional shares of common stock. One warrant to potentially acquire an additional 625,000 shares of common stock expired on June 19, 2018, and the other warrant to potentially acquire an additional 625,000 shares of common stock expired on June 28, 2019. Both warrants are exercisable at $0.20 per share. The Company revalued the warrants based on information that has come forward that caused a recalculation of the 1,250,000 warrants value from the $51,592 (as disclosed in the December 31, 2017 footnote) to the corrected amount $96,643. This re-valuation had no material impact on 2017, given that the majority of expense was recorded in 2018 and 2019. The Company has issued non-qualified options to an independent contractor, during 2018 there have been 1,200,000 options issued to this contractor. All options are exercisable at $0.15 per share and have a 5 year life. All non-expired warrants are being expensed ratably through expiration; all non-expired options are expensed as stock compensation is vested. As of June 30, 2019, the remaining non-expired warrant amount to be expensed is $0; the amount expensed during the period for these warrants is $9,285 and for options is $0. The total number of warrants and options outstanding as of June 30, 2019 is 500,000 and 1,200,000 respectively. Related Party Loans Payable The following is a summary of related party loans payable: For the Periods Ended June 30, 2019 December 31, 2018 Loans payable - stockholders $ 35,000 $ 45,000 Loans from related parties $ 0 $ 0 Loans Payable - Stockholders On December 29, 2014, the Company entered into a partially-convertible promissory note with a shareholder in the amount of $35,000. In January of 2015, the shareholder partially-exercised its conversion option, and in May of 2016 the shareholder exercised the remainder of its conversion option. In December 2017, the remaining unpaid principal and interest due on the note was settled in full for a $50,000 note and the Company recognized $151,324 in gain on settlement of debt. The $50,000 note has a current principle balance of $35,000, a stated interest rate of 0%, required payments of $5,000 on or before June 10, 2019, $5,000 on or before August 10, 2019 and the remainder due by the extended due date of September 15, 2019. Loans from Related Parties There are no loans from related parties at this time. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 8 – SUBSEQUENT EVENTS On July 2, 2019, the Company entered into a subscription agreement to issue 150,000 shares of common stock for $15,000. The purchase was prepaid in June 2019 and is recorded as a Deposit liability on the June 30, 2019 Balance Sheet. Other than the foregoing, the Company is not aware of any subsequent events through the date of this filing that require disclosure or recognition in these financial statements. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business ACRT (“the Company’s TurnScor® and CyberloQ™ products”, “We” or the “Company”) is a development-stage technology company focused on fraud prevention and credit management. The Company was incorporated in the State of Nevada on February 25, 2008. The Company offers a proprietary software platform branded as CyberloQ™ . While previously the Company licensed CyberloQ, in the third quarter of 2017, the Company acquired the CyberloQ technology and is now the exclusive owner of CyberloQ. The CyberloQ Vault is a “cloud based’ security protocol that allows clients the ability to send/receive secure DATA without having to use traditional e-mail which is prone to a breach. This CyberloQ service uses CLOUD BASED encryption and a secure web portal to send/receive confidential DATA, the SENDER and RECEIVER both must have authenticated their position within the prescribed GEO coordinates as well as authenticate their mobile devices prior to SENDING/RECEIVING any DATA. Thus rendering a hack or breach utterly useless for the encrypted DATA is unusable without the CyberloQ authentication component. In addition to CyberloQ, the Company offers a web-based proprietary software platform under the brand name Turnscor® which allows customers to monitor and manage their credit from the privacy of their own homes. Although individuals can sign-up for Turnscor on their own, the Company also intends to market Turnscor to certain institutional clients, where appropriate, in conjunction with CyberloQ as a value-added benefit to offer their customers. On June 15, 2017, the Company created a private limited company in the United Kingdom named CyberloQ Technologies LTD. CyberloQ Technologies LTD is a wholly-owned subsidiary of the Company, and any business that the Company has in the United Kingdom will be transacted through CyberloQ Technologies LTD. However, to date CyberloQ Technologies LTD has not had any operating activity or generated any revenue for the Company. |
Basis of Presentation | Basis of Presentation The financial statements of the Company have been prepared using the accrual basis of accounting in accordance with generally accepted accounting principles in the United States of America and the rules of the Securities and Exchange Commission. All amounts are presented in U.S. dollars. The Company has adopted a December 31 fiscal year end. Certain information and note disclosures normally included in our annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. These consolidated financial statements should be read in conjunction with a reading of the financial statements and notes thereto included in our Annual Report on From 10-K for the fiscal year ended December 31, 2018, as filed with the U.S. Securities and Exchange Commission. Principles of Consolidation – The consolidated financial statements include the accounts of the Company and its wholly-owned or controlled operating subsidiaries. All intercompany accounts and transactions have been eliminated. |
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. As of June 30, 2019 and December 31, 2018, the Company had no 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 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 periods ending June 30, 2019 and 2018, we expensed $6,193 and $1,500, respectively, for expenditures on research and development. None was paid to related parties. |
Fixed Assets, Intangibles and Long-Lived Assets | Fixed Assets, Intangibles and Long-Lived 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 three to fifteen years. The Company follows FASB ASC 360-10, “Property, Plant, and Equipment,” |
Revenue Recognition | Revenue Recognition Effective January 1, 2018, the Company adopted the requirements of ASU No. 2014-09, Revenue from Contracts with Customers: Topic 606 Revenue Recognition Policy Under ASC 606, the Company recognizes revenue upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. To achieve the core principle of ASC 606, the Company performs the following steps: 1) Identify the contract(s) with a customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) we satisfy a performance obligation. The Company derives its revenue from two sources: (1) subscription revenues, which are comprised of subscription fees from customers utilizing the Company’s TurnScor®, CyberloQ™ and CyberloQ Vault products and from customers purchasing additional support beyond the standard support that is included in the basic subscription fees; and (2) related professional services and other revenue, which consists primarily of certain performance obligations related to set-up, ingestion, consulting and training fees. The Company’s subscription arrangements provide customers the right to access the Company’s hosted software applications. Customers do not have the right to take possession of the Company’s software during the hosting arrangement. As of June 30, 2019, the Company had $0 in contract assets, as well as a contract liability of $37,087 to perform on contracts. As of December 31, 2018, the Company has $0 in contract assets, however there was a commitment receivable of $9,000 from a customer’s non-refundable two year (beginning August 28, 2018) service contract, as well as a contract liability of $39,585 to perform on that contract as of December 31, 2018. The contract liability will be reduced by $2,083 per month as the Company provides a non-exclusive, non-transferable license to use the CyberloQ Vault Services for the customer’s internal purposes and earns and recognizes related revenue. Contract Asset Contract Liability December 31, 2018 $ 0 $ 39,585 Less: revenue earned and recognized - (12,498 ) June 30, 2019 $ 0 $ 27,087 |
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” |
Advertising | Advertising Advertising costs are expensed as incurred. Advertising expense for the periods ended June 30, 2019 and 2018 were $4,769 and $11,418, respectively. |
Income Taxes | Income Taxes Deferred income taxes are provided using the liability method (in accordance with ASC 740) 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. The Company is not aware of uncertain tax positions. |
Earnings (Loss) 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 June 30, 2019 and December 31, 2018 the Company has 500,000 and 1,125,000 warrants as well as 1,200,000 and 1,200,000 options issued (respectively) that can be exercised and could be dilutive to the existing number of shares issued and outstanding. However, due to the Company’s periods of losses, the basic weighted average is equal to the diluted weighted average shares 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 and warrant awards are valued using the Black-Scholes option-pricing model, which according to ASC 820-10 is a level 3 value on the hierarchy. Black Scholes assumptions were calculated using stock price at grant date between $0.29 to $0.149; exercise prices between $0.15 to $0.20: life expectancy between ½ year to 5 years; and volatility ranging from 163% to 68%. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In July 2018, the FASB issued ASU 2018-07, Improvements to Nonemployee Share-Based Payment Accounting. The amendments expand the scope of ASC 718, Compensation – Stock Compensation, to include share-based payment transactions for acquiring goods and services from nonemployees and to supersede the guidance in ASC 505-50, Equity-Based Payments to Non-Employees. The accounting for nonemployee awards will now be substantially the same as current guidance for employee awards. ASU 2018-07 impacts all entities that issue awards to nonemployees in exchange for goods or services to be used or consumed in the grantor’s own operations, as well as to nonemployees of an equity method investee that provide goods or services to the investee that are used or consumed in the investee’s operations. ASU 2018-07 aligns the measurement-date guidance for employee and nonemployee awards using the current employee model, meaning that the measurement date for nonemployee equity-classified awards generally will be the grant date, while liability-classified awards generally will be the settlement date. ASU 2018-07 is effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. The Company has determined that there is no retroactive effect on its financial reports from the adoption of this standard. The Company adopted ASU 2018-07 on January 1, 2019. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Contract Asset and Contract Liability | Contract Asset Contract Liability December 31, 2018 $ 0 $ 39,585 Less: revenue earned and recognized - (12,498 ) June 30, 2019 $ 0 $ 27,087 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Software and computer equipment, recorded at cost, consisted of the following: June 30, 2019 December 31, 2018 Software and computer equipment $ 736,500 $ 720,750 Less: accumulated depreciation (230,752 ) (170,071 ) Property and equipment, net $ 505,748 $ 550,679 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Warrants Issued | The following is a summary of the warrants issued in connection with common stock: Date 11/30/15 11/30/15 6/28/16 Wtd. Avg. Life Wtd. Avg.Price Warrants 250,000 250,000 625,000 - Exercise price $ 0.15 $ 0.20 $ 0.20 - Expected life 4 year 5 year 3 year - Unexpired 12/31/18 250,000 250,000 625,000 3.667 years $ 0.1889 Unexpired 6/30/19 250,000 250,000 0 4.5 years $ 0.1750 |
Summary of Options Issued | The following is a summary of the options issued in connection with common stock: Date FY 2017 FY2018 Wtd. Avg. Life Wtd. Avg. Price Options 100,000 1,100,000 - Exercise price $ 0.15 $ 0.15 - Expected life 5 year 5 year - Unexpired 12/31/18 100,000 1,100,000 5 years $ 0.15 Unexpired 6/30/19 100,000 1,100,000 5 years $ 0.15 |
Schedule of Related Party Loans Payable | The following is a summary of related party loans payable: For the Periods Ended June 30, 2019 December 31, 2018 Loans payable - stockholders $ 35,000 $ 45,000 Loans from related parties $ 0 $ 0 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Integer$ / sharesshares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)shares | |
Cash FDIC insured amount | |||||
Research and development expense | 5,165 | 6,193 | $ 1,500 | ||
Contract asset | 0 | 0 | 0 | ||
Contract liability | 27,087 | 27,087 | 39,585 | ||
Commitment receivable | $ 9,000 | ||||
Contract with customer liability reduced | $ 2,083 | $ 2,083 | |||
Operating segment | Integer | 1 | ||||
Advertising expenses | $ 4,769 | $ 11,418 | |||
Income tax examination, likelihood percentage | 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. | ||||
Warrant [Member] | |||||
Computation of earnings per share, amount | shares | 1,500,000 | 1,125,000 | |||
Options [Member] | |||||
Computation of earnings per share, amount | shares | 1,200,000 | 1,200,000 | |||
Stock Option and Warrant Awards [Member] | |||||
Volatility, minimum | 163.00% | ||||
Volatility, maximum | 68.00% | ||||
Minimum [Member] | |||||
Estimated useful lives of fixed assets | 3 years | ||||
Minimum [Member] | Stock Option and Warrant Awards [Member] | |||||
Stock price | $ / shares | $ 0.29 | $ 0.29 | |||
Exercise prices | $ / shares | 0.15 | $ 0.15 | |||
Life expectancy | 6 months | ||||
Maximum [Member] | |||||
Estimated useful lives of fixed assets | 15 years | ||||
Maximum [Member] | Stock Option and Warrant Awards [Member] | |||||
Stock price | $ / shares | 0.149 | $ 0.149 | |||
Exercise prices | $ / shares | $ 0.20 | $ 0.20 | |||
Life expectancy | 5 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Contract Asset and Contract Liability (Details) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Accounting Policies [Abstract] | |
Begnning Balance, Contract Asset | $ 0 |
Less revenue earned and recognized | |
Ending Balance, Contract Asset | 0 |
Begnning Balance, Contract Liability | 39,585 |
Less revenue earned and recognized | (12,498) |
Ending Balance, Contract Liability | $ 27,087 |
Fixed Assets (Details Narrative
Fixed Assets (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 30,669 | $ 30,013 | $ 60,681 | $ 60,025 |
Fixed Assets - Schedule of Prop
Fixed Assets - Schedule of Property and Equipment (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Abstract] | ||
Software and computer equipment | $ 736,500 | $ 720,750 |
Less: accumulated depreciation | (230,752) | (170,071) |
Property and equipment, net | $ 505,748 | $ 550,679 |
Going Concern (Details Narrativ
Going Concern (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Accumulated deficit | $ 3,911,605 | $ 3,661,711 | $ 3,911,605 | |||||
Net loss | $ 106,910 | $ 142,984 | $ 205,111 | $ 473,623 | $ 157,377 | $ 204,348 | $ 249,894 | $ 361,725 |
Deposits (Details Narrative)
Deposits (Details Narrative) | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Deposits [Abstract] | |
Deposits | $ 15,000 |
Down payment from customer to secure future services | $ 10,000 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2017 | |
Common stock - shares authorized | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | |||||||
Common stock - par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Number of common shares issued during period, value | $ 125,000 | $ 20,000 | $ 202,000 | $ 19,999 | $ 100,000 | ||||||
Proceeds from issuance of common stock | $ 145,000 | $ 120,000 | |||||||||
Payments for shares of common stock | 1,450,000 | ||||||||||
Stock issued for services, amount | $ 48,000 | $ 83,300 | |||||||||
Loss on settlement of debt | $ 12,000 | $ (151,324) | |||||||||
Shares issued for conversion of debt, amount | $ 12,000 | ||||||||||
Shares issued for conversion of debt, shares | 150,000 | ||||||||||
Common stock, shares issued | 67,580,515 | 65,830,515 | 67,580,515 | 65,830,515 | |||||||
Common stock, shares outstanding | 67,580,515 | 65,830,515 | 67,580,515 | 65,830,515 | |||||||
Preferred stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Preferred stock , description | Certain rights, preferences, privileges and restrictions were established for the Series A Preferred Stock as follows: (a) the amount to be represented in stated capital at all times for each share of Series A Preferred Stock shall be its par value of $0.001 per share; (b) except as otherwise required by law, holders of shares of Series A Preferred Stock shall vote together with the common stock as a single class and the holders of Series A Preferred Stock shall be entitled to five-thousand (5,000) votes per share of Series A Preferred Stock; and (c) in the event of any liquidation, dissolution or winding-up of the Company, either voluntary or involuntary, the holders of the Series A Preferred Stock shall be entitled to receive, prior and in preference to any distribution of assets of the Corporation to the holders of the common stock, the original purchase price paid for the Series A Preferred Stock. All 30,000 shares of the Series A Super Voting Preferred Stock were issued in 2017. | ||||||||||
Preferred stock, shares issued | 30,000 | 30,000 | 30,000 | 30,000 | |||||||
Common Stock [Member] | |||||||||||
Proceeds from issuance of common stock | $ 322,000 | ||||||||||
Payments for shares of common stock | 3,203,334 | ||||||||||
Stock issued for services, amount | $ 83,330 | ||||||||||
Stock issued for services, shares | 435,000 | ||||||||||
Loss on settlement of debt | $ 12,000 | ||||||||||
Common Stock for Legal Fees [Member] | |||||||||||
Number of common shares issued during period | 60,000 | ||||||||||
Number of common shares issued during period, value | $ 6,000 | ||||||||||
Stock Subscription [Member] | |||||||||||
Number of common shares issued during period | 3,333,333 | ||||||||||
Number of common shares issued during period, value | $ 50,000 | ||||||||||
Subscribed and Issued in July [Member] | |||||||||||
Number of common shares issued during period | 150,000 | ||||||||||
Received deposit to purchase shares of common stock | $ 15,000 | ||||||||||
Officers [Member] | |||||||||||
Number of common shares issued during period, value | $ 300,000 | ||||||||||
Common Stock (Issued) [Member] | |||||||||||
Number of common shares issued during period | 3,333,333 | ||||||||||
Number of common shares issued during period, value | $ 300,000 | ||||||||||
Collected amount towards that agreement | $ 250,000 | ||||||||||
Series A Preferred Stock [Member] | |||||||||||
Preferred stock, designated | 30,000 | ||||||||||
Preferred stock, par value | $ 0.001 | ||||||||||
Preferred stock, shares issued | 30,000 |
Commitments (Details Narrative)
Commitments (Details Narrative) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Rent expense, monthly | $ 50 | |
Commission agreements description | An agreement with a shareholder and officer of the Company stating that the executive will be entitled to a two-and-a half-percent (2.5%) commission of the gross revenue recorded by the Company for any customer contracts that are closed by the Company at the time of and during the duration of the agreement. An agreement with two sales managers granting each manager a 1% commission on the gross revenue of the Company. | |
Monthly fee | $ 100 | |
Service Other [Member] | ||
Commission paid | $ 17,646 | |
Minimum [Member] | ||
Investors monthly residuals | 2.00% | |
Maximum [Member] | ||
Investors monthly residuals | 5.00% |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Jul. 28, 2017 | Dec. 31, 2016 | Dec. 29, 2014 | |
Acquisition value | $ 720,000 | ||||||||
Payment for acquisition | $ 50,000 | ||||||||
Note payable issued for acquisition | $ 150,000 | ||||||||
Shares issued for software, shares | 4,000,000 | ||||||||
Shares available | 1,250,000 | 1,250,000 | |||||||
Price per share | $ 0.15 | ||||||||
Warrants | $ 51,592 | $ 51,592 | |||||||
Warrants revalued | 96,643 | 96,643 | |||||||
Non-qualified stock option awards | 1,200,000 | ||||||||
Warrant term | 5 years | ||||||||
Non expired warrant amount | $ 0 | 0 | |||||||
Warrant expense | $ 9,285 | ||||||||
Warrant options | 0 | ||||||||
Warrants outstanding | 1,125,000 | 1,125,000 | |||||||
Options outstanding | 500,000 | 500,000 | |||||||
Convertible promissory notes | $ 35,000 | ||||||||
Settlement of notes payable | $ 50,000 | ||||||||
Gain of Settlement of Debt | $ (12,000) | $ 151,324 | |||||||
Promissory note | 50,000 | 50,000 | |||||||
Debt current principle balance | $ 35,000 | $ 35,000 | |||||||
Debt interest percentage | 0.00% | 0.00% | |||||||
Debt extended date | Sep. 15, 2019 | ||||||||
June 10, 2019 [Member] | |||||||||
Debt current principle balance | $ 5,000 | $ 5,000 | |||||||
August 10, 2019 [Member] | |||||||||
Debt current principle balance | $ 5,000 | $ 5,000 | |||||||
Warrant 1 [Member] | |||||||||
Shares available | 625,000 | 625,000 | |||||||
Date of expiration | Jun. 19, 2018 | ||||||||
Price per share | $ 0.20 | $ 0.20 | |||||||
Other Warrant [Member] | |||||||||
Shares available | 625,000 | 625,000 | |||||||
Date of expiration | Jun. 28, 2018 | ||||||||
Price per share | $ 0.20 | $ 0.20 |
Related Party Transactions - Su
Related Party Transactions - Summary of Warrants Issued (Details) - $ / shares | 6 Months Ended | |||
Jun. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Warrants | 1,250,000 | 1,250,000 | ||
Exercise price | $ 0.15 | |||
Weighted average life, Unexpired 12/31/18 | 3 years 80 months 2 days | |||
Weighted average life, Unexpired 3/31/19 | 4 years 6 months | |||
Weighted average price, Unexpired 12/31/18 | $ 0.1889 | |||
Weighted average price, Unexpired 3/31/19 | $ 0.1750 | |||
11/30/15 One [Member] | ||||
Warrants | 250,000 | |||
Exercise price | $ 0.15 | |||
Expected life | 4 years | |||
Unexpired 12/31/18 | 250,000 | |||
Unexpired 3/31/19 | 250,000 | |||
11/30/15 Two [Member] | ||||
Warrants | 250,000 | |||
Exercise price | $ 0.20 | |||
Expected life | 5 years | |||
Unexpired 12/31/18 | 250,000 | |||
Unexpired 3/31/19 | 250,000 | |||
6/28/16 [Member] | ||||
Warrants | 625,000 | |||
Exercise price | $ 0.20 | |||
Expected life | 3 years | |||
Unexpired 12/31/18 | 625,000 | |||
Unexpired 3/31/19 | 0 |
Related Party Transactions - _2
Related Party Transactions - Summary of Options Issued (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | |
Options | 500,000 | ||
Options [Member] | |||
Options | 1,100,000 | 100,000 | |
Excersise price | $ 0.15 | $ 0.15 | |
Expected life | 5 years | 5 years | |
Unexpired 12/31/18 | 1,100,000 | 100,000 | |
Unexpired 3/31/19 | 1,100,000 | 100,000 | |
Options weighted average, Unexpired 12/31/18 | 5 years | 5 years | |
Options weighted average, Unexpired 6/30/19 | 5 years | 5 years | |
Options weighted average, Unexpired 12/31/18 | $ 0.15 | $ 0.15 | |
Options weighted average, Unexpired 6/30/19 | $ 0.15 | $ 0.15 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Loans Payable (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Related Party Transactions [Abstract] | ||
Loans payable- stockholders | $ 35,000 | $ 45,000 |
Loans from related parties | $ 0 | $ 0 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Jul. 02, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 |
Number of stock issued during period, value | $ 125,000 | $ 20,000 | $ 202,000 | $ 19,999 | $ 100,000 | ||
Subsequent Event [Member] | Subscription Agreement [Member] | |||||||
Number of stock issued during period, shares | 150,000 | ||||||
Number of stock issued during period, value | $ 15,000 |