Grow Capital (GRWC) 10-Q 15 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	15-May-14
Document and Entity Information	'	'
Entity Registrant Name	'CALIBRUS, INC.	'
Document Type	'10-Q	'
Document Period End Date	31-Mar-14	'
Amendment Flag	'false	'
Entity Central Index Key	'0001448558	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	15,626,464
Entity Filer Category	'Smaller Reporting Company	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Well-known Seasoned Issuer	'No	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Entity Incorporation, Date of Incorporation	22-Oct-99	'

CONDENSED_BALANCE_SHEETS

CONDENSED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current Assets	'	'
Cash and cash equivalents	$909	$19,622
Prepaid expenses	'	398
Total Current Assets	909	20,020
Property and equipment, net	400	450
Deposits	818	818
Total Assets	2,127	21,288
Current Liabilities	'	'
Notes payable - current portion	75,000	75,000
Related party notes payable and short term cash advances	468,825	449,900
Accounts payable - trade	319,489	331,913
Accrued liabilities	296,550	202,682
Total Liabilities	1,159,864	1,059,495
Stockholders' Equity (Deficit)	'	'
Preferred stock, $.001 par value, 5,000,000 shares authorized, none issued or outstanding	'	'
Common stock, $.001 par value, 45,000,000 shares authorized, shares issued and outstanding	15,011	15,011
Additional paid-in capital	9,771,185	9,667,866
Accumulated deficit	-10,943,933	-10,721,084
Total Stockholders' Equity (Deficit)	-1,157,737	-1,038,207
Total Liabilities and Stockholders' Equity (Deficit)	$2,127	$21,288

BALANCE_SHEETS_PARENTHETICAL

BALANCE SHEETS (PARENTHETICAL) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Statement of Financial Position	'	'
Common Stock, par or stated value	$0.00	$0.00
Common Stock, shares authorized	45,000,000	45,000,000
Common Stock, shares issued	15,011,080	15,011,080
Common Stock, shares outstanding	15,011,080	15,011,080
Preferred Stock, par or stated value	$0.00	$0.00
Preferred Stock, shares authorized	5,000,000	5,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

CONDENSED_STATEMENTS_OF_OPERAT

CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Statement	'	'
Revenues	'	'
Cost of revenues	'	'
Gross profit	'	'
General and administrative expenses	107,916	199,078
Income (loss) from Operations	-107,916	-199,078
Other Income (Expense):	'	'
Interest expense	-114,933	-75,861
Total Other Income (Expense)	-114,933	-75,861
Loss from continued operations	-222,849	-274,939
Income from discontinued operations	'	233,724
Loss before income taxes	-222,849	-41,215
Income taxes	'	'
Net loss	($222,849)	($41,215)
Loss per common share from continued operations	'	'
Basic and diluted	($0.01)	($0.02)
Income per common share from discontinued operations	'	'
Basic and diluted	'	$0.02
Net loss per common share	'	'
Basic and diluted	($0.01)	'
Weighted average common shares; basic and diluted	15,011,080	13,871,080

CONDENSED_STATEMENTS_OF_CASH_F

CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net loss	($222,849)	($41,215)
Adjustments to reconcile net loss to net cash flows from operating activities:	'	'
Depreciation and amortization	50	4,081
Warrant extensions	103,319	'
Changes in assets and liabilities:	'	'
Accounts receivable - trade	'	80,253
Prepaid expenses	398	-1,495
Deposits	'	-110
Accounts payable - trade	-12,424	-51,411
Accrued liabilities	93,868	62,343
Net cash provided (used) by operating activities	-37,638	52,446
Cash flows from investing activities:	'	'
Purchase of fixed assets	'	-2,236
Net cash used by investing activities	'	-2,236
Cash flows from financing activities:	'	'
Proceeds from related party advances	18,925	'
Proceeds from factoring line	'	475,480
Repayment of factoring line	'	-517,387
Net cash provided (used) by financing activities	18,925	-41,907
Net change in cash and cash equivalents	-18,713	8,303
Cash and cash equivalents at beginning of period	19,622	24,692
Cash and cash equivalents at end of period	909	32,995
Supplemental disclosure of cash flow information:	'	'
Cash paid during the year for: Interest	'	34,215
Cash paid during the year for: Income taxes	'	$50

1_Summary_of_Significant_Accou

1. Summary of Significant Accounting Policies and Use of Estimates	3 Months Ended
	Mar. 31, 2014
Notes	'
1. Summary of Significant Accounting Policies and Use of Estimates:	'
	1. Summary of Significant Accounting Policies and Use of Estimates:
	Presentation of Interim Information:
	The condensed financial statements included herein have been prepared by Calibrus, Inc. (“we”, “us”, “our” or “Company”) without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements as of December 31, 2013.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted, as permitted by the SEC, although we believe the disclosures, which are made, are adequate to make the information presented not misleading. Further, the condensed financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position at March 31, 2014, and the results of our operations and cash flows for the periods presented. The December 31, 2013 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.
	Interim results are subject to significant seasonal variations and the results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year.
	Nature of Corporation:
	Calibrus, Inc. (the “Company”) was incorporated on October 22, 1999, in the State of Nevada.  The Company’s principal business purpose had been to operate a customer contact center for a variety of clients located throughout the United States. The Company provided customer contact support services for various companies wishing to outsource these functions.   During June 2012, the Company decided to divest itself of its Third Party Verification Business (“TPV Business”).  The Company made this decision to focus on its Social Networking operations which currently include Fanatic Fans, a mobile smartphone application centered around live sporting and entertainment events, and JabberMonkey, a social expression website centered around gathering public opinion on current events.  However, due to cash constraints the Company has suspended the majority of expenses related to its social networking ventures.
	On June 30, 2013, the Company entered into an asset purchase agreement and closed the transaction contemplated by that agreement.  Pursuant to the agreement, the Company sold all assets related to its call center services business which provides third party verifications to other businesses.  The assets were purchased by Calibrus Call Center Services, LLC, (“CCCS”) an Arizona limited liability company (the “Purchaser”).  There is no material relationship between the Purchaser and the Company or any of the Company’s affiliates, or any director or officer of the Company or any associate of any such director of officer.  Consideration for the assets was cash in the amount of $1,200,000 of which $1,000,000 was due immediately and of which $200,000 is due in 12 months subject to certain adjustments.  The transaction closed on July 2, 2013.  The Company has presented assets related to its TPV Business as held-for-sale and has presented the TPV Business statements of operations as discontinued operations.
	As the Company continues to seek ways to better commercialize its social media projects, the Company is also open to the acquisition of other products, services or technologies that have potential for profit in the consumer or commercial market place.
	Use of Estimates:
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, the valuation/classification of assets held for sale and the valuation of stock options and warrants.  Actual results could differ from those estimates.
	Fair Value of Financial Instruments:
	The estimated fair values for financial instruments are determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The carrying amounts of accounts payable, accrued liabilities, notes payable and short term advances approximate fair value given their short term nature or effective interest rates, which represent level 3 inputs.
	Earnings (Loss) per Share:
	Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period and contains no dilutive securities. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity.    The Company calculates diluted earnings per share using the treasury stock method for options and warrants and the if-converted method for convertible debt.  For the three months ended March 31, 2014 and 2013 all potentially dilutive securities are anti-dilutive due to the Company’s losses from continued operations.
		Three Months Ended March 31, 2014	Three Months Ended March 31, 2013
	Loss available to common stockholders	($222,849)	($41,215)
	Weighted average number of common shares used in basic earnings per share	15,011,080	13,871,080
	Effect of dilutive securities:
	Stock options	-	-
	Stock warrants	-	-
	Convertible debt	-	-
	Weighted average number of common shares and potential dilutive common stock used in diluted earnings per share	15,011,080	13,871,080
	All dilutive common stock equivalents are reflected in our earnings (loss) per share calculations. Anti-dilutive common stock equivalents are not included in our earnings (loss) per share calculations.  As of March 31, 2014 and 2013 the Company had outstanding options to purchase 1,795,000 and 2,519,167 shares of common stock at a per share weighted average exercise price of $.79 and $.85, respectively, which were not included in the earnings per share calculation as they were anti-dilutive.  As of March 31, 2014 and 2013 the Company had outstanding warrants to purchase 934,588 and 950,588 shares of common stock at a per share weighted average exercise price of $.35 and $.38, respectively, which were not included in the earnings per share calculation as they were anti-dilutive.  In addition, at March 31, 2013 the Company had $15,000 principal balance of convertible debentures along with $5,413 in accrued interest which was convertible into 13,609 shares of the Company’s common stock, if converted, which were also deemed to be anti-dilutive.
	Revenue Recognition:
	Revenue for inbound calls is recorded on a per-call or per-minute basis in accordance with the rates established in the respective contracts. Revenue for outbound calls is on a commission basis, with revenue being recognized as the commission is earned.  As the Company’s customers are primarily well established, creditworthy institutions, management believes collectability is reasonably assured at the time of performance. The Company from time to time executes outbound sales campaigns for customers, primarily for the sale of telecommunications services.  This revenue source has historically been immaterial. The Company recognizes the commissions earned on these campaigns on a net basis in accordance with FASB ASC 605-45, Principal Agent Considerations.  At this time the Company has no revenue generating operations.
	Stock-Based Compensation:
	The Company has stock-based compensation plans. Stock-based compensation expense for all stock-based compensation awards is based on the grant date fair value estimated in accordance with the Black Scholes Pricing Model. The value of the compensation cost is amortized on a straight-line basis over the requisite service periods of the award (the option vesting term).
	·       Expected term is determined using the contractual term and vesting period of the award;
	·       Expected volatility of award grants made under the Company’s plans is measured using the historical daily changes in the market price of the Company’s common stock, which is publicly traded, over the expected term of the award;
	·       Risk-free interest rate is equivalent to the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and,
	·       Forfeitures are based on the history of cancellations of awards granted by the Company and management's analysis of potential forfeitures.
	Income Taxes:
	The Company estimates the annual tax rate based on projected taxable income for the full year and records a quarterly income tax provision in accordance with the anticipated annual rate. As the year progresses, we refine the estimates of the year’s taxable income as new information becomes available, including year-to-date financial results. This continual estimation process can result in a change to the expected effective tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected annual tax rate. Significant judgment may be required in determining the Company’s effective tax rate and in evaluating our tax positions.
	The effective income tax rate of 0% for the three months ended March 31, 2014 and 2013 differed from the statutory rate, due primarily to the full reserve of net operating losses incurred by the Company in past and/or respective periods.  For the three month period ended March 31, 2014 a tax benefit of approximately $87,000 would have been generated.  For the three month period ended March 31, 2013 a tax benefit of approximately $16,000 would have been generated.  However, all benefits have been fully offset through an allowance account due to the uncertainty of the utilization of the net operating losses.  As of March 31, 2014 the Company had net operating losses of approximately $7,712,000 resulting in a deferred tax asset of approximately $3,007,000.  The Company has established a valuation allowance in the full amount of the deferred tax asset due to the uncertainty of the utilization of operating losses in future periods.
	Recent Accounting Pronouncements:
	There have been no recent accounting pronouncements issued which are expected to have a material effect on the Company’s financial statements.

2_Related_Party_Transactions

2. Related Party Transactions	3 Months Ended
	Mar. 31, 2014
Notes	'
2. Related Party Transactions	'
	2.   Related Party Transactions
	As of March 31, 2014 the Company owed a total of $151,325 in short-term advances to its CEO and an additional $50,000 through a bridge loan.  The short-term advances are non-interest bearing and the bridge loan accrues interest at the stated rate of 12% per annum and is due December 31, 2014.  The short-term advances do not have a set maturity date, and are due on demand.  During the quarter ended March 31, 2014, the Company received an additional advance in the amount of $18,925 to cover operating expenses.
	As of March 31, 2014 the Company owed a total of $267,500 in principal balance in the form of bridge loans to a related party.  The bridge loan accrues interest at the stated rate of 12% per annum and is due December 31, 2014.
	As of March 31, 2014 the Company owed a total of $25,000 in bridge loans to one of its former Directors or entities controlled by this former director.  The notes accrue interest at the stated interest rate of 12% per annum.  The notes matured on July 2, 2013, with the closing of the sale of the TPV Business and are currently in default.
	During the quarter ended March 31, 2014, the Company extended 50,000 related party warrants that were set to expire during the quarter for a period of one year.  These 50,000 warrants are included in the amount of warrants discussed in Note 3.
	At March 31, 2014, the Company owed a total of $9,314 in unpaid business expenses to related party officers and employees of the Company.  These amounts are included in the accounts payable balance on the accompanying balance sheet.

3_Warrants

3. Warrants	3 Months Ended
	Mar. 31, 2014
Notes	'
3. Warrants	'
	3.   Warrants
	During the three months ended March 31, 2014, the Company extended the expiration date of a total of 162,500 warrants that originally expired on various dates during the quarter for a period of one year.  All terms other than the expiration date remained unchanged.  The warrant extension was valued at $103,319 using the black-scholes method of valuation and was recorded as interest expense in the accompanying statement of operations.

4_Liquidity_and_Going_Concern_

4. Liquidity and Going Concern Consideration	3 Months Ended
	Mar. 31, 2014
Notes	'
4. Liquidity and Going Concern Consideration	'
	4.   Liquidity and Going Concern Consideration
	Following the Sale of the Company’s TPV Business the Company has divested itself of its only revenue generating source.  As such, the Company has no additional incoming cash-flow to fund its ongoing operations.  The Company will have to rely on the ability to raise additional capital, either through an additional convertible debenture offering or equity offering, however there can be no assurance that the Company will be able to raise such capital or do so on favorable terms.  If the Company is unable to raise additional capital it may be forced to cease operations.  Until such time additional capital can be raised, the Company has suspended further development expenditures related to its social media initiatives.  However, there will be some ongoing maintenance expenses related to support of the social media projects.  As the Company continues to seek ways to better commercialize its social media projects, the Company is also open to the acquisition of other products, services or technologies that have potential for profit in the consumer or commercial market place.
	The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The Company has incurred significant cumulative net losses from operations in recent years. As reported in the financial statements, the Company has an accumulated deficit of $10,943,933.  At March 31, 2014, the Company had total current assets of $909 and liabilities totaling $1,159,864 and a working capital deficit of $1,158,955.  These factors raise substantial doubt as to the Company’s ability to continue as a going concern.
	The ability of the Company to continue as a going concern is dependent on its ability to raise adequate capital to fund operating losses until it is able to engage in profitable business operations. To the extent financing is not available, the Company may not be able to, or may be delayed in, developing its services and meeting its obligations. The Company will continue to evaluate its projected expenditures relative to its available cash and to evaluate additional means of financing in order to satisfy its working capital and other cash requirements. To this end, the Company has discontinued the furthered development and expenditures related its social networking operations.   Management intends to work with its existing debt holders and vendors to negotiate payment terms and settlements.  The accompanying financial statements do not reflect any adjustments that might result from the outcome of these uncertainties.  As a result, the Company’s independent registered public accounting firm included an emphasis-of-matter paragraph in their report on the consolidated financial statements of the Company for the year ended December 31, 2013 expressing uncertainty regarding the Company’s assumption that it will continue as a going concern.

5_Subsequent_Events

5. Subsequent Events	3 Months Ended
	Mar. 31, 2014
Notes	'
5. Subsequent Events	'
	5.  Subsequent Events
	The Company has reviewed events through the date of this filing and determined that other than listed below, no material subsequent events exist.
	Subsequent to December 31, 2013, the Company received a demand in the amount of $500,000 from a third party related to Letters of Intent and Amendments to the Letters of Intent that the Company entered into beginning in September 2013.  Subsequent to March 31, 2014, the Company paid a total of $50,000 to the third party to settle the matter and  avoid litigation related to this demand.
	Subsequent to March 31, 2014, the Company received an additional short-term advance from its CEO in the amount of $25,000 to cover operating expenses.
	Subsequent to March 31, 2014, the Company sold 615,384 shares of common stock for proceeds of $200,000.

1_Summary_of_Significant_Accou1

1. Summary of Significant Accounting Policies and Use of Estimates (Policies)	3 Months Ended
	Mar. 31, 2014
Policies	'
Presentation of Interim Information:	'
	Presentation of Interim Information:
	The condensed financial statements included herein have been prepared by Calibrus, Inc. (“we”, “us”, “our” or “Company”) without audit, pursuant to the rules and regulations of the United States Securities and Exchange Commission (“SEC”) and should be read in conjunction with the audited financial statements as of December 31, 2013.  Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted, as permitted by the SEC, although we believe the disclosures, which are made, are adequate to make the information presented not misleading. Further, the condensed financial statements reflect, in the opinion of management, all normal recurring adjustments necessary to present fairly our financial position at March 31, 2014, and the results of our operations and cash flows for the periods presented. The December 31, 2013 condensed balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.
	Interim results are subject to significant seasonal variations and the results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results to be expected for the full year.
Use of Estimates:	'
	Use of Estimates:
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include, but are not limited to, the valuation/classification of assets held for sale and the valuation of stock options and warrants.  Actual results could differ from those estimates.
Fair Value of Financial Instruments:	'
	Fair Value of Financial Instruments:
	The estimated fair values for financial instruments are determined at discrete points in time based on relevant market information. These estimates involve uncertainties and cannot be determined with precision. The carrying amounts of accounts payable, accrued liabilities, notes payable and short term advances approximate fair value given their short term nature or effective interest rates, which represent level 3 inputs.
Earnings (loss) Per Share:	'
	Earnings (Loss) per Share:
	Basic earnings (loss) per share is computed by dividing income (loss) available to common shareholders by the weighted average number of common shares outstanding for the period and contains no dilutive securities. Diluted earnings per share reflect the potential dilution of securities that could share in the earnings of an entity.    The Company calculates diluted earnings per share using the treasury stock method for options and warrants and the if-converted method for convertible debt.  For the three months ended March 31, 2014 and 2013 all potentially dilutive securities are anti-dilutive due to the Company’s losses from continued operations.
		Three Months Ended March 31, 2014	Three Months Ended March 31, 2013
	Loss available to common stockholders	($222,849)	($41,215)
	Weighted average number of common shares used in basic earnings per share	15,011,080	13,871,080
	Effect of dilutive securities:
	Stock options	-	-
	Stock warrants	-	-
	Convertible debt	-	-
	Weighted average number of common shares and potential dilutive common stock used in diluted earnings per share	15,011,080	13,871,080
	All dilutive common stock equivalents are reflected in our earnings (loss) per share calculations. Anti-dilutive common stock equivalents are not included in our earnings (loss) per share calculations.  As of March 31, 2014 and 2013 the Company had outstanding options to purchase 1,795,000 and 2,519,167 shares of common stock at a per share weighted average exercise price of $.79 and $.85, respectively, which were not included in the earnings per share calculation as they were anti-dilutive.  As of March 31, 2014 and 2013 the Company had outstanding warrants to purchase 934,588 and 950,588 shares of common stock at a per share weighted average exercise price of $.35 and $.38, respectively, which were not included in the earnings per share calculation as they were anti-dilutive.  In addition, at March 31, 2013 the Company had $15,000 principal balance of convertible debentures along with $5,413 in accrued interest which was convertible into 13,609 shares of the Company’s common stock, if converted, which were also deemed to be anti-dilutive.
Revenue Recognition:	'
	Revenue Recognition:
	Revenue for inbound calls is recorded on a per-call or per-minute basis in accordance with the rates established in the respective contracts. Revenue for outbound calls is on a commission basis, with revenue being recognized as the commission is earned.  As the Company’s customers are primarily well established, creditworthy institutions, management believes collectability is reasonably assured at the time of performance. The Company from time to time executes outbound sales campaigns for customers, primarily for the sale of telecommunications services.  This revenue source has historically been immaterial. The Company recognizes the commissions earned on these campaigns on a net basis in accordance with FASB ASC 605-45, Principal Agent Considerations.  At this time the Company has no revenue generating operations.
Stock-based Compensation:	'
	Stock-Based Compensation:
	The Company has stock-based compensation plans. Stock-based compensation expense for all stock-based compensation awards is based on the grant date fair value estimated in accordance with the Black Scholes Pricing Model. The value of the compensation cost is amortized on a straight-line basis over the requisite service periods of the award (the option vesting term).
	·       Expected term is determined using the contractual term and vesting period of the award;
	·       Expected volatility of award grants made under the Company’s plans is measured using the historical daily changes in the market price of the Company’s common stock, which is publicly traded, over the expected term of the award;
	·       Risk-free interest rate is equivalent to the implied yield on zero-coupon U.S. Treasury bonds with a remaining maturity equal to the expected term of the awards; and,
	·       Forfeitures are based on the history of cancellations of awards granted by the Company and management's analysis of potential forfeitures.
Income Taxes:	'
	Income Taxes:
	The Company estimates the annual tax rate based on projected taxable income for the full year and records a quarterly income tax provision in accordance with the anticipated annual rate. As the year progresses, we refine the estimates of the year’s taxable income as new information becomes available, including year-to-date financial results. This continual estimation process can result in a change to the expected effective tax rate for the year. When this occurs, the Company adjusts the income tax provision during the quarter in which the change in estimate occurs so that the year-to-date provision reflects the expected annual tax rate. Significant judgment may be required in determining the Company’s effective tax rate and in evaluating our tax positions.
	The effective income tax rate of 0% for the three months ended March 31, 2014 and 2013 differed from the statutory rate, due primarily to the full reserve of net operating losses incurred by the Company in past and/or respective periods.  For the three month period ended March 31, 2014 a tax benefit of approximately $87,000 would have been generated.  For the three month period ended March 31, 2013 a tax benefit of approximately $16,000 would have been generated.  However, all benefits have been fully offset through an allowance account due to the uncertainty of the utilization of the net operating losses.  As of March 31, 2014 the Company had net operating losses of approximately $7,712,000 resulting in a deferred tax asset of approximately $3,007,000.  The Company has established a valuation allowance in the full amount of the deferred tax asset due to the uncertainty of the utilization of operating losses in future periods.
Recent Accounting Pronouncements:	'
	Recent Accounting Pronouncements:
	There have been no recent accounting pronouncements issued which are expected to have a material effect on the Company’s financial statements.

1_Summary_of_Significant_Accou2

1. Summary of Significant Accounting Policies and Use of Estimates: Earnings (loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables)	3 Months Ended
	Mar. 31, 2014
Tables/Schedules	'
Schedule of Earnings Per Share, Basic and Diluted	'
		Three Months Ended March 31, 2014	Three Months Ended March 31, 2013
	Loss available to common stockholders	($222,849)	($41,215)
	Weighted average number of common shares used in basic earnings per share	15,011,080	13,871,080
	Effect of dilutive securities:
	Stock options	-	-
	Stock warrants	-	-
	Convertible debt	-	-
	Weighted average number of common shares and potential dilutive common stock used in diluted earnings per share	15,011,080	13,871,080

1_Summary_of_Significant_Accou3

1. Summary of Significant Accounting Policies and Use of Estimates (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Details	'	'
Date of Incorporation	22-Oct-99	'
Business Total Sale Price Amount	'	$1,200,000
Sales Price	'	1,000,000
Future Proceeds From Sale of Business	$200,000	'

1_Summary_of_Significant_Accou4

1. Summary of Significant Accounting Policies and Use of Estimates: Earnings (loss) Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Details	'	'
Loss available to common stockholders	($222,849)	($41,215)
Weighted average number of common shares used in basic earnings per share	15,011,080	13,871,080
Stock options	0	0
Stock warrants	0	0
Convertible debt	0	0
Weighted average number of common shares and potential dilutive common stock used in diluted earnings per share	15,011,080	13,871,080

1_Summary_of_Significant_Accou5

1. Summary of Significant Accounting Policies and Use of Estimates: Earnings (loss) Per Share (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Equity Option	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,795,000	2,519,167
Outstanding, Weighted Average Exercise Price	$0.79	$0.85
Warrant	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	934,588	950,588
Outstanding, Weighted Average Exercise Price	$0.35	$0.38
Convertible Debt Securities	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	'	13,609
Convertible Debt, Current	'	$15,000
Accrued interest	'	$5,413

1_Summary_of_Significant_Accou6

1. Summary of Significant Accounting Policies and Use of Estimates: Stock-based Compensation (Details)	3 Months Ended
	Mar. 31, 2014
Details	'
Fair Value Assumptions, Method Used	'Black Scholes Pricing Model

1_Summary_of_Significant_Accou7

1. Summary of Significant Accounting Policies and Use of Estimates: Income Taxes (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Details	'	'
Effective Income Tax Rate Reconciliation, Percent	0.00%	0.00%
Deferred Income Tax Expense (Benefit)	$87,000	$16,000
Operating Loss Carryforwards	7,712,000	'
Deferred Tax Asset	$3,007,000	'

2_Related_Party_Transactions_D

2. Related Party Transactions (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Related party notes payable and short term cash advances	$468,825	$449,900
Accounts payable - trade	319,489	331,913
Warrant Extensions	'	'
Class of Warrant, Outstanding	162,500	'
Bridge Loan	'	'
Related party notes payable and short term cash advances	267,500	'
Chief Executive Officer	'	'
Related party notes payable and short term cash advances	151,325	'
Chief Executive Officer | Advance 1	'	'
Related party notes payable and short term cash advances	50,000	'
Chief Executive Officer | Bridge Loan	'	'
Bridge Loan Interest Rate	12.00%	'
Chief Executive Officer | Advance 2	'	'
Related party notes payable and short term cash advances	18,925	'
Affiliated Entity | Warrant Extensions	'	'
Class of Warrant, Outstanding	50,000	'
Affiliated Entity | Bridge Loan	'	'
Bridge Loan Interest Rate	12.00%	'
Director | Bridge Loan	'	'
Related party notes payable and short term cash advances	25,000	'
Bridge Loan Interest Rate	12.00%	'
Officer	'	'
Accounts payable - trade	$9,314	'

3_Warrants_Details

3. Warrants (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Interest expense	$114,933	$75,861
Fair Value Assumptions, Method Used	'Black Scholes Pricing Model	'
Warrant Extensions	'	'
Class of Warrant, Outstanding	162,500	'
Interest expense	$103,319	'

4_Liquidity_and_Going_Concern_1

4. Liquidity and Going Concern Consideration (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Details	'	'
Accumulated deficit	$10,943,933	$10,721,084
Total Current Assets	909	20,020
Total Liabilities	1,159,864	1,059,495
Working Capital	($1,158,955)	'

5_Subsequent_Events_Details

5. Subsequent Events (Details) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Related party notes payable and short term cash advances	$468,825	$449,900
Chief Executive Officer	'	'
Related party notes payable and short term cash advances	151,325	'
Subsequent Event	'	'
Demand for payment received by company	'	500,000
Payment to third party	50,000	'
Subsequent Event | Common Stock	'	'
Common Stock shares sold	615,384	'
Proceeds from sale of Common Stock	200,000	'
Subsequent Event | Chief Executive Officer	'	'
Related party notes payable and short term cash advances	$25,000	'