IRONCLAD ENCRYPTION (IRNC) 10-Q 12 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 06, 2014	Nov. 06, 2014
		Common Class A	Common Class B
Entity Registrant Name	'Butte Highlands Mining Company, Inc.	'	'
Document Type	'10-Q	'	'
Document Period End Date	30-Sep-14	'	'
Amendment Flag	'false	'	'
Entity Central Index Key	'0001455926	'	'
Current Fiscal Year End Date	'--12-31	'	'
Entity Common Stock, Shares Outstanding	'	1,327,698	1,654,191
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	'Q3	'	'
Entity Incorporation, Date of Incorporation	18-May-29	'	'
Entity Incorporation, State Country Name	'Delaware	'	'

BUTTE_HIGHLANDS_MINING_COMPANY

BUTTE HIGHLANDS MINING COMPANY (A Development Stage Company) BALANCE SHEETS (Interim period unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
CURRENT ASSETS	'	'
Cash and cash equivalents	$145,812	$171,951
Prepaid expense	'	327
Total Current Assets	145,812	172,278
TOTAL ASSETS	145,812	172,278
CURRENT LIABILITIES	'	'
Accounts payable	450	925
Total Current Liabilities	450	925
COMMITMENTS AND CONTINGENCIES	0	0
STOCKHOLDERS' EQUITY	'	'
Preferred stock, $0.001 par value, 20,000,000 shares authorized, none issued and outstanding	0	0
Common stock, Class A, $0.001 par value 500,000,000 shares authorized; 1,327,698 shares issued and outstanding	1,328	1,328
Common stock, Class B, $0.001 par value 1,707,093 shares authorized; 1,654,191 shares issued and outstanding	1,654	1,654
Additional paid-in capital	269,469	269,469
Accumulated income prior to development stage	242,106	242,106
Accumulated deficit during development stage	-369,195	-343,204
Total Stockholders' Equity	145,362	171,353
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$145,812	$172,278

Statement_of_Financial_Positio

Statement of Financial Position - Parenthetical (USD $)	Sep. 30, 2014	Dec. 31, 2013
Statement of financial position	'	'
Preferred Stock, Par Value	$0.00	$0.00
Preferred Stock, Shares Authorized	20,000,000	20,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, Class A, Par Value	$0.00	$0.00
Common Stock, Class A, Shares Authorized	500,000,000	500,000,000
Common Stock, Class A, Shares Issued	1,327,698	1,327,698
Common Stock, Class A, Shares Outstanding	1,327,698	1,327,698
Common Stock, Class B, Par Value	$0.01	$0.01
Common Stock, Class B, Shares Authorized	1,707,093	1,707,093
Common Stock, Class B, Shares Issued	1,654,191	1,654,191
Common Stock, Class B, Shares Outstanding	1,654,191	1,654,191

BUTTE_HIGHLANDS_MINING_COMPANY1

BUTTE HIGHLANDS MINING COMPANY (A Development Stage Company) STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended		88 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
Income statement	'	'	'	'	'
REVENUES	$0	$0	$0	$0	$0
OPERATING EXPENSES	'	'	'	'	'
Professional fees	5,385	2,590	23,942	26,096	256,704
Depreciation	'	'	'	'	1,295
Officers and directors fees	'	'	'	'	6,000
General and administrative	521	3,932	2,055	22,854	64,174
TOTAL OPERATING EXPENSES	5,906	6,522	25,997	48,950	328,173
LOSS FROM OPERATIONS	-5,906	-6,522	-25,997	-48,950	-328,173
OTHER INCOME (EXPENSES)	'	'	'	'	'
Interest income	2	2	6	504	10,815
Interest expense	'	'	'	'	-553
Other income	'	'	'	'	740
Other expense	'	'	'	'	-459
Other than temporary impairment of investment	'	'	'	'	-165,240
Gain on sale of investment	'	'	'	'	66,072
TOTAL OTHER INCOME (EXPENSES)	2	2	6	504	-88,625
LOSS BEFORE TAXES	-5,904	-6,520	-25,991	-48,446	-416,798
INCOME TAXES	'	'	'	'	'
Income tax benefit	'	'	'	'	50,764
Tax expense	'	'	'	'	-3,161
TOTAL INCOME TAXES	'	'	'	'	47,603
NET LOSS	($5,904)	($6,520)	($25,991)	($48,446)	($369,195)
NET LOSS PER COMMON SHARE, BASIC AND DILUTED	$0	$0	($0.01)	($0.02)	'
WEIGHTED AVERAGE NUMBER OF COMMON STOCK SHARES OUTSTANDING, BASIC AND DILUTED	2,981,889	2,981,889	2,981,889	2,981,889	'

BUTTE_HIGHLANDS_MINING_COMPANY2

BUTTE HIGHLANDS MINING COMPANY (A Development Stage Company) STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended		88 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'	'
Net loss	($25,991)	($48,446)	($369,195)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:	'	'	'
Depreciation	'	'	1,295
Gain on sale of investments	'	'	-66,072
Other than temporary impairment of investment	'	'	165,240
Changes in assets and liabilities:	'	'	'
Decrease (increase) in prepaid expense	327	'	961
Decrease (increase) in deferred tax asset	'	'	50,830
Decrease (increase) in refund receivable	'	'	3,198
Increase (decrease) in accounts payable	-475	126	450
Increase (decrease) in income tax payable	'	'	-237,798
Net cash used by operating activities	-26,139	-48,320	-451,091
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'	'
Cash paid for equipment purchased	'	'	-543
Cash received for mining claims	'	'	405,000
Cash received for sale of investment	'	'	116,832
Net cash provided by investing activities	'	'	521,289
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'	'
Cash received from sale of common stock	'	'	35,000
Net cash provided by financing activities	'	'	35,000
INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS	-26,139	-48,320	105,198
Cash, beginning of period	171,951	232,720	40,614
Cash, end of period	145,812	184,400	145,812
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'	'
Interest paid	0	0	'
Income taxes paid	0	0	'
NON-CASH INVESTING AND FINANCING ACTIVITIES:	'	'	'
Investment received for mining claims	'	'	$216,000

Note_1_Organization_and_Descri

Note 1 - Organization and Description of Business	9 Months Ended
	Sep. 30, 2014
Notes	'
Note 1 - Organization and Description of Business	'
	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
	Butte Highlands Mining Company (hereinafter “Butte” or “the Company”) was incorporated in May 18, 1929 under the laws of the State of Delaware for the purpose of exploring and mining the Butte Highland’s (Only Chance) Mine, south of Butte, Montana.  The Company was reorganized in October 1996 for the purpose of acquiring and developing mineral properties.  As of the date of reorganization, stockholders representing approximately 76% of the outstanding capital stock could not be located.  In order to obtain the quorum necessary for the special meetings, the Company obtained an order from the Superior Court of Spokane County, Washington appointing a trustee for the benefit of those stockholders which could not be located.
	As of May 17, 2007 the Company had disposed of all of its historical mineral properties or claims, and has reentered the development stage.  The Board of Directors intends to seek out an appropriate business opportunity and has not limited its search to any particular industry. Management believes it can identify opportunities in several sectors and will proceed with the appropriate diligence to create value for the shareholders. Operations are primarily conducted from the Company headquarters in Spokane, Washington.
	The Company had entered into negotiations with a possible acquirer.  The deal is no longer going through due to lack of financing.
	The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles in the United States of America for complete financial statements.  These unaudited interim financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2013.  In the opinion of management, the unaudited interim financial statements furnished herein includes all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented.  Operating results for the nine month period ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.

Note_2_Summary_of_Significant_

Note 2 - Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2014
Notes	'
Note 2 - Summary of Significant Accounting Policies	'
	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	This summary of significant accounting policies of Butte Highlands Mining Company is presented to assist in understanding the Company’s financial statements.  The financial statements and notes are representations of the Company’s management, which is responsible for their integrity and objectivity.  These accounting policies conform to accounting principles generally accepted in the United States and have been consistently applied in the preparation of the financial statements.
	Fair Value of Financial Instruments
	The Company's financial instruments as defined by ASC 825-10-50, include cash, receivables, accounts payable and accrued expenses.  All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at September 30, 2014.
	The standards under ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements.  FASB ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:
	Level 1.  Observable inputs such as quoted prices in active markets;
	Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
	Level 3.  Unobservable inputs in which there is little of no market data, which require the reporting entity to develop its own assumptions.
	The Company did not have any assets measured at fair value at September 30, 2014.
	Provision for Taxes
	Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition.  Under the approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end.  A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard imposed by ASC 740-10-25-5 to allow recognition of such an asset. See Note 4.
	New Accounting Pronouncements
	On June 10, 2014 the FASB issued authoritative guidance which eliminates the concept of a development stage entity.  The incremental reporting requirements for presenting the development stage operations and cash flows since inception will no longer apply to development stage entities. The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic 915 are to be applied retrospectively and are effective for fiscal years beginning after December 15, 2014. The Company is evaluating the effect of this standard on its financial reporting and expects to adopt the transitional changes in the appropriate quarter.

Note_3_Related_Party_Transacti

Note 3 - Related Party Transactions	9 Months Ended
	Sep. 30, 2014
Notes	'
Note 3 - Related Party Transactions	'
	NOTE 3 – RELATED PARTY TRANSACTIONS
	The Company utilized office facilities provided by its president.  The value of the office facilities provided by the Company’s president is nominal and immaterial to the financial statements.

Note_4_Income_Taxes

Note 4 - Income Taxes	9 Months Ended
	Sep. 30, 2014
Notes	'
Note 4 - Income Taxes	'
	NOTE 4 – INCOME TAXES
	Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition.  Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end.  A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard imposed by ASC 740-10-25-5.
	Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes.
	Significant components of the deferred tax assets at an anticipated tax rate of 35% for the periods ended September 30, 2014 and December 31, 2013 are as follows:
		September 30,	December 31,
		2014	2013
	Net operating loss carryforwards	129,000	103,000
	Deferred tax asset	45,150	36,050
	Valuation allowance for deferred asset	-45,150	-36,050
	Net deferred tax asset	0	0
	At September 30, 2014, the Company has net operating loss carryforwards of approximately $129,000 which will begin to expire in the year 2031. The change in the allowance account from December 31, 2013 to September 30, 2014 was $9,100.

Note_5_Subsequent_Events

Note 5 - Subsequent Events	9 Months Ended
	Sep. 30, 2014
Notes	'
Note 5 - Subsequent Events	'
	NOTE 5 – SUBSEQUENT EVENTS
	For the period ended September 30, 2014, there were no recognizable subsequent events. Subsequent events have been evaluated through the date the financial statements were issued.

Note_2_Summary_of_Significant_1

Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments, Policy (Policies)	9 Months Ended
	Sep. 30, 2014
Policies	'
Fair Value of Financial Instruments, Policy	'
	Fair Value of Financial Instruments
	The Company's financial instruments as defined by ASC 825-10-50, include cash, receivables, accounts payable and accrued expenses.  All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at September 30, 2014.
	The standards under ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles, and expands disclosures about fair value measurements.  FASB ASC 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows:
	Level 1.  Observable inputs such as quoted prices in active markets;
	Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
	Level 3.  Unobservable inputs in which there is little of no market data, which require the reporting entity to develop its own assumptions.
	The Company did not have any assets measured at fair value at September 30, 2014.

Note_2_Summary_of_Significant_2

Note 2 - Summary of Significant Accounting Policies: Provision For Taxes (Policies)	9 Months Ended
	Sep. 30, 2014
Policies	'
Provision For Taxes	'
	Provision for Taxes
	Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition.  Under the approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end.  A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard imposed by ASC 740-10-25-5 to allow recognition of such an asset. See Note 4.

Note_2_Summary_of_Significant_3

Note 2 - Summary of Significant Accounting Policies: New Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2014
Policies	'
New Accounting Pronouncements	'
	New Accounting Pronouncements
	On June 10, 2014 the FASB issued authoritative guidance which eliminates the concept of a development stage entity.  The incremental reporting requirements for presenting the development stage operations and cash flows since inception will no longer apply to development stage entities. The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements of Topic 915 are to be applied retrospectively and are effective for fiscal years beginning after December 15, 2014. The Company is evaluating the effect of this standard on its financial reporting and expects to adopt the transitional changes in the appropriate quarter.

Note_4_Income_Taxes_Schedule_o

Note 4 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	9 Months Ended
	Sep. 30, 2014
Tables/Schedules	'
Schedule of Deferred Tax Assets and Liabilities	'
		September 30,	December 31,
		2014	2013
	Net operating loss carryforwards	129,000	103,000
	Deferred tax asset	45,150	36,050
	Valuation allowance for deferred asset	-45,150	-36,050
	Net deferred tax asset	0	0

Note_1_Organization_and_Descri1

Note 1 - Organization and Description of Business (Details)	9 Months Ended
	Sep. 30, 2014
Details	'
Entity Incorporation, Date of Incorporation	18-May-29
Entity Incorporation, State Country Name	'Delaware
Nature of Operations	'As of May 17, 2007 the Company had disposed of all of its historical mineral properties or claims, and has reentered the development stage. The Board of Directors intends to seek out an appropriate business opportunity and has not limited its search to any particular industry. Management believes it can identify opportunities in several sectors and will proceed with the appropriate diligence to create value for the shareholders. Operations are primarily conducted from the Company headquarters in Spokane, Washington. The Company had entered into negotiations with a possible acquirer. The deal is no longer going through due to lack of financing.
Basis of Accounting	'The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles in the United States of America for complete financial statements. These unaudited interim financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2013. In the opinion of management, the unaudited interim financial statements furnished herein includes all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented. Operating results for the nine month period ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014.

Note_4_Income_Taxes_Details

Note 4 - Income Taxes (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Details	'
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	35.00%
Operating Loss Carryforwards	$129,000
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount	$9,100

Note_4_Income_Taxes_Schedule_o1

Note 4 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Details	'	'
Deferred Tax Assets, Operating Loss Carryforwards	$129,000	$103,000
Deferred Tax Assets, Gross	45,150	36,050
Deferred Tax Assets, Valuation Allowance	-45,150	-36,050
Deferred Tax Assets, Net of Valuation Allowance	$0	$0