IRONCLAD ENCRYPTION (IRNC) 10-K 31 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 27, 2017	Jun. 30, 2016
Entity Registrant Name	Ironclad Encryption Corp
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Entity Central Index Key	1,455,926
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY
Entity Public Float			$ 227,829
Trading Symbol	irnc
Entity Incorporation, State Country Name	Delaware
Common Class A
Entity Common Stock, Shares Outstanding		66,741,579
Common Class B
Entity Common Stock, Shares Outstanding		1,538,872

IRONCLAD ENCRYPTION CORPORATION

IRONCLAD ENCRYPTION CORPORATION (fka BUTTE HIGHLANDS MINING COMPANY) BALANCE SHEETS (Audited) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 60,125	$ 102,819
Prepaid expense	110	173
Total Current Assets	60,235	102,992
TOTAL ASSETS	60,235	102,992
CURRENT LIABILITIES
Accounts payable	1,365	4,389
Total Current Liabilities	1,365	4,389
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; 1,443,017 shares issued and outstanding	1,443	1,443
Common stock, Class B, $0.001 par value 1,707,093 shares authorized; 1,538,872shares issued and outstanding	1,539	1,539
Additional paid-in capital	269,469	269,469
Accumulated deficit	(213,581)	(173,848)
Total Stockholders' Equity	58,870	98,603
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 60,235	$ 102,992

Statement of Financial Position

Statement of Financial Position - Parenthetical	Dec. 31, 2016$ / sharesshares
Statement of financial position
Preferred Stock, Shares Authorized	20,000,000
Common Stock, Class A, Par Value | $ / shares	$ 0.001
Common Stock, Class A, Shares Authorized	500,000,000
Common Stock, Class B, Shares Authorized	1,707,093

IRONCLAD ENCRYPTION CORPORATIO4

IRONCLAD ENCRYPTION CORPORATION (fka BUTTE HIGHLANDS MINING COMPANY) STATEMENTS OF OPERATIONS (Audited) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income statement
REVENUES	$ 0	$ 0
OPERATING EXPENSES
Professional fees	27,813	27,045
Depreciation	0	0
Officers and directors fees	0	0
General and administrative	11,920	5,696
TOTAL OPERATING EXPENSES	39,733	32,741
LOSS FROM OPERATIONS	(39,733)	(32,741)
OTHER INCOME (EXPENSES)
Interest income		1
Interest expense		(10)
Other income	0	0
Other expense	0	0
Other than temporary impairment of investment	0	0
Gain on sale of investment	0	0
TOTAL OTHER INCOME (EXPENSES)		(9)
LOSS BEFORE TAXES	(39,733)	(32,750)
INCOME TAXES
Income tax benefit	0	0
Tax expense	0	0
TOTAL INCOME TAXES	0	0
NET LOSS	$ (39,733)	$ (32,750)
NET LOSS PER COMMON SHARE, BASIC AND DILUTED	$ (0.01)	$ (0.01)
WEIGHTED AVERAGE NUMBER OF COMMON STOCK SHARES OUTSTANDING, BASIC AND DILUTED	2,981,889	2,981,889

IRONCLAD ENCRYPTION CORPORATIO5

IRONCLAD ENCRYPTION CORPORATION (fka BUTTE HIGHLANDS MINING COMPANY) STATEMENT OF STOCKHOLDERS' EQUITY (Audited) - USD ($)	Common Stock Class A Shares	Common Stock Class A Amount	Common Stock Class B Shares	Common Stock Class B Amount	Additional Paid-in Capital	Accumulated Deficit	Total
Stockholders' Equity at Dec. 31, 2013		$ 1,328		$ 1,654	$ 269,469	$ (101,098)	$ 171,353
Shares issued at Dec. 31, 2013	1,327,698		1,654,191
Net income (loss)						(40,000)	(40,000)
Stockholders' Equity at Dec. 31, 2014		1,328		1,654	269,469	(141,098)	131,353
Shares issued at Dec. 31, 2014	1,327,698		1,654,191
Shares converted from Class B to Class A, value		115		(115)
Shares converted from Class B to Class A, stock	115,319		(115,319)
Net income (loss)						(32,750)	(32,750)
Stockholders' Equity at Dec. 31, 2015		1,443		1,539	269,469	(173,848)	$ 98,603
Shares issued at Dec. 31, 2015	1,443,017		1,538,872
Shares converted from Class B to Class A, stock							115,319
Net income (loss)						(39,733)	$ (39,733)
Stockholders' Equity at Dec. 31, 2016		$ 1,443		$ 1,539	$ 269,469	$ (213,581)	$ 58,870
Shares issued at Dec. 31, 2016	1,443,017		1,538,872

IRONCLAD ENCRYPTION CORPORATIO6

IRONCLAD ENCRYPTION CORPORATION (fka BUTTE HIGHLANDS MINING COMPANY) STATEMENTS OF CASH FLOWS (Audited) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (39,733)	$ (32,750)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Depreciation	0	0
Gain on sale of investments	0	0
Other than temporary impairment of investment	0	0
Changes in assets and liabilities:
Decrease (increase) in prepaid expense	63	(173)
Increase (decrease) in accounts payable	(3,024)	4,389
Increase (decrease) in income tax payable	0	0
Net cash used by operating activities	(42,694)	(28,534)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for equipment purchased	0	0
Cash received for mining claims	0	0
Cash received for sale of investment	0	0
Net cash provided by investing activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash received from sale of common stock	0	0
Net cash provided by financing activities	0	0
INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS	(42,694)	(28,534)
Cash, beginning of period	102,819	131,353
Cash, end of period	60,125	102,819
SUPPLEMENTAL CASH FLOW INFORMATION:
Interest paid	0	0
Income taxes paid	$ 0	$ 0

Note 1 - Organization and Descr

Note 1 - Organization and Description of Business	12 Months Ended
	Dec. 31, 2016
Notes
Note 1 - Organization and Description of Business	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS Ironclad Encryption Corporation, formerly Butte Highlands Mining Company (hereinafter “Butte” or “the Company”) was incorporated in May 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 reentered the development stage. On January 6, 2017, we changed the focus of our business when we acquired all of the ownership interests of InterLok Key Management, Inc., a Texas corporation engaged in the business of developing and licensing its patented key based encryption methods. Attempts to safeguard information from unauthorized use have met with limited success. The increasing number of data thefts and security breaches, as well as new and pending legislation is driving many businesses to shift their focus and make data security a top priority. Stronger encryption is a key component to the overall solution to this problem. InterLok was formed to develop and license a new approach that enhances the strength of today’s key-based encryption methods. Through its patented Dynamic Synchronous Key Management technology, InterLok brings innovation to data encryption security. Its solutions increase the effectiveness of current encryption products. InterLok’s unique design also prevents hacker attacks by providing perpetual authentication for communication sessions. As the next generation data security leader, InterLok technology addresses current market perception of encryption: cost, implementation and human interaction. As of March 28, 2017 InterLok is a wholly owned subsidiary of Ironclad Encryption Corporation.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
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. Accounting Method The Company’s financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Earnings (Losses) Per Share Basic net income/loss per share was computed by dividing the net income/loss by the weighted average number of shares outstanding during the year. The weighted average number of shares was calculated by taking the number of shares outstanding and weighting them by the amount of time they were outstanding. The Company presents EPS on a combined basis because Class B common stock has all of the rights and privileges of Class A common stock, except for voting rights. See Note 1 and 3. Additionally, if the two class method were used the EPS would be identical. Cash Equivalents The Company considers cash, certificates of deposit, and debt instruments with a maturity of three months or less when purchased to be cash equivalents. Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of the Company’s financial position and results of operations. 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 December 31, 2016. 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 December 31, 2016. Going Concern As shown in the accompanying financial statements, the Company has incurred operating losses since inception. As of December 31, 2016, the Company has no financial resources with which to achieve its objectives and obtain profitability and positive cash flows. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $213,581 and the Company's working capital is $58,870. Achievement of the Company's objectives will be dependent upon the ability to obtain additional financing, and generate revenue from current and planned business operations, and control costs. The Company is in the development stage and has generated no operating income. The Company plans to fund its future operations by joint venturing or obtaining additional financing from investors and/or lenders. However there is no assurance that the Company will be able to achieve these objectives, therefore substantial doubt about its ability to continue as a going concern exists. The financial statements do not include adjustments relating to the recoverability of recorded assets nor the implication of associated bankruptcy costs should the Company be unable to continue as a going concern. Provision for Taxes Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition New Accounting Pronouncements The Company has evaluated the authoritative guidance issued during the year ended December 31, 2016 and does not expect the adoption of these standards to have a material effect on its financial position or results of operations. Reclassification Certain amounts in prior period financial statements have been reclassified to conform to the presentation in the current period financial statements. The reclassification had no effect on reported net losses, total assets or total equity.

Note 3 - Common Stock

Note 3 - Common Stock	12 Months Ended
	Dec. 31, 2016
Notes
Note 3 - Common Stock	NOTE 3 – COMMON STOCK Upon formation in 1929, the Company issued 1,500,000 shares of its common stock in exchange for mineral claims. During 1937, the Company’s total authorized common stock was increased to 2,500,000 under a reorganization plan. During 1996, due to a long period of inactivity, stockholders representing approximately 76% of the outstanding common stock of the Company could not be located. The Company obtained an order from the Superior Court of Spokane County, Washington appointing a “trustee for the benefit of those stockholders who cannot be located”. After obtaining this order, the Company adopted a plan of reorganization. Under this plan of reorganization, the Company increased authorized common stock to 25,000,000 shares of which 23,292,907 were designated as Class A voting common stock and 1,707,093 were designated as Class B nonvoting common stock. All of the Company’s locatable stockholders received share-for-share Class A voting common stock. All of the Company’s unlocated stockholders received share-for-share Class B nonvoting common stock, which is held in trust for missing shareholders pending knowledge of their location. If a previously unlocated recorded owner or beneficiary of a record owner is subsequently located, they must present satisfactory evidence and presentation of a share certificate or an “Affidavit of Loss” with an agreement to indemnify the Company for any future damage as a result of the certificate having been sold or transferred but not lost. Upon satisfaction of these requirements, Class A voting common stock will be issued share-for-share in exchange for the Class B nonvoting common stock. The relevant shares of Class B nonvoting common stock will then be cancelled. During the year ended December 31, 2007, the Company issued 500,000 shares of Class A common stock to two directors for $35,000 in cash, according to the Company’s stock option plan. During the years ended December 31, 2008 through December 31, 2011, the Company did not issue any shares of common stock. During the year ended December 31, 2012, the Company increased its authorized capital to 521,707,093 shares and changed its par value to $0.001 per share, of which 500,000,000 shares are designated as Class A Common Stock, 1,707,093 shares are designated as Class B Common Stock and 20,000,000 designated as Preferred Stock. All amounts in the foregoing financials reflect this change. During the period ending March 31, 2016 the Company identified 115,319 Class B shares that had previously been cancelled and re-issued as Class A shares. The shares have been reclassified and all affected periods have been updated to reflect this change.

Note 4 - Related Party Transact

Note 4 - Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Notes
Note 4 - Related Party Transactions	NOTE 4 – 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, additionally the value of the services provided by the Company’s president are nominal and immaterial to the financial statements.

Note 5 - Income Taxes

Note 5 - Income Taxes	12 Months Ended
	Dec. 31, 2016
Notes
Note 5 - Income Taxes	NOTE 5 – INCOME TAXES Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition. Topic 740 in the Accounting Standards Codification (ASC 740) prescribes recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At December 31, 2016, the Company had taken no tax positions that would require disclosure under ASC 740. The Company files income tax returns in the U.S. federal jurisdiction. The federal jurisdiction has a statute of limitations of three years. Federal income tax returns prior to year ending December 31, 2011 are closed. 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 December 31, 2016 and December 31, 2015 are as follows: December 31, 2016 December 31, 2015 Net operating loss carryforwards 215,479 175,750 Deferred tax asset 75,418 61,500 Valuation allowance for deferred asset (75,418) (61,500) Net deferred tax asset - - At December 31, 2016, the Company has net operating loss carryforwards of approximately $215,480 which will begin to expire in the year 2032. The change in the allowance account from December 31, 2015 to December 31, 2016 was $13,920.

Note 6 - Subsequent Events

Note 6 - Subsequent Events	12 Months Ended
	Dec. 31, 2016
Notes
Note 6 - Subsequent Events	NOTE 6 – SUBSEQUENT EVENTS On January 6, 2017, we entered into a Share Exchange Agreement with owners of InterLok Key Management, Inc., a Texas corporation wherein we agreed to issue 56,655,891 restricted shares of our common stock in exchange for 100% of the outstanding shares of InterLok Key Management, Inc. common stock. InterLok Key Management, Inc. is engaged in the business of developing and licensing its patented key based encryption methods. On January 6, 2017, we completed our Share Exchange Agreement with the owners of InterLok, and issued 56,655,891 restricted shares of our common stock to 29 persons and/or entities in exchange for all of the outstanding shares of InterLok Key Management, Inc. common stock. Immediately following completion of the share exchange agreement, the new Board changed the Company name to Ironclad Encryption Corporation, moved the Company from Delaware to Nevada, and changed the stock symbol to IRNC from BTHI. On January 16, 2017, the Delaney Equity Group, LLC received 75,000 shares of restricted Class A Common Stock at a base value of $0.15 per share, and options to purchase 75,000 shares of Class A Common Stock at $0.75 per share over a three year period, as part of a compensation package for brokerage services. On January 20, 2017 as previously reported on Form 3A these Ironclad Officers received the following Class A Common stock options at a purchase price of $0.15 per share that vest on January 6, 2018: • JD McGraw, President: 1,000,000 shares per year over four years, for a total of 4,000,000 shares. And, a performance based option to purchase 10,000,000 shares at $0.15 per share if the stock price reaches $15 per share. • Daniel Lerner, Chief Technology: 1,000,000 per year over three year, for a total of 3,000,000 shares. • Jeff Barrett, Vice President of Planning: 250,000 per year over four years, for a total of 1,000,000 shares. • Len Walker, General Council: 250,000 shares per year over four years, for a total of 1,000,000 shares. On January 31, 2017, Ironclad issued a Private Placement Memorandum (PPM) to accredited investors to sell up to 9,333,334 shares of the Company’s $0.001 par value restricted Class A Common Stock at a price of $0.15 per share and raise up to $1,400,000. As of March 27, 2017, 8,317,671 the shares have been sold to 31 investors. The PPM is expected to close on March 31, 2017. On January 31, 2017, per the terms of the Share Exchange Agreement on January 6, 2017, Paul Hatfield received 250,000 shares of restricted Class A Common Stock at a base value of $0.03 per share, options to purchase 350,000 shares of Class A Common Stock at $0.15 per share over a two year period, and $25,000 in cash. On February 1, 2017, Halliburton Investor Relations received options to purchase 100,000 shares of Class A Common Stock at $0.15 per share over a three year period, as part of a compensation package for investor relations services. On March 13, 2017, Lisa Morgan, an Ironclad Encryption writing consultant, received options to purchase 100,000 shares of Class A Common Stock at $0.15 per share over a four year period at 25,000 shares per year, with an option period of twenty-four months. On March 15, 2017, two convertible notes, each in the amount of $30,000 were converted to 200,000 shares of restricted Class A Common Stock at $0.15 per share. The total 400,000 shares are accounted for in the above mentioned PPM offering. As well, the two owners of the convertible notes were each granted options to purchase 250,000 shares of Class A Common Stock at a purchase price of $0.15 until August 9, 2018. On March 21, 2017, Mendy Ouzillou, an Ironclad marketing consultant received options to purchase 20,000 shares of Class A Common Stock at $0.15 per share over a three year period. All related financial information for the year ended December 31, 2016 for the private company, InterLok Key Management, Inc. is contained in a corresponding amended 8K dated March 29, 2017.

Note 2 - Summary of Significa13

Note 2 - Summary of Significant Accounting Policies: Accounting Method (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Accounting Method	Accounting Method The Company’s financial statements are prepared using the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America.

Note 2 - Summary of Significa14

Note 2 - Summary of Significant Accounting Policies: Earnings (losses) Per Share (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Earnings (losses) Per Share	Earnings (Losses) Per Share Basic net income/loss per share was computed by dividing the net income/loss by the weighted average number of shares outstanding during the year. The weighted average number of shares was calculated by taking the number of shares outstanding and weighting them by the amount of time they were outstanding. The Company presents EPS on a combined basis because Class B common stock has all of the rights and privileges of Class A common stock, except for voting rights. See Note 1 and 3. Additionally, if the two class method were used the EPS would be identical.

Note 2 - Summary of Significa15

Note 2 - Summary of Significant Accounting Policies: Cash Equivalents (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Cash Equivalents	Cash Equivalents The Company considers cash, certificates of deposit, and debt instruments with a maturity of three months or less when purchased to be cash equivalents.

Note 2 - Summary of Significa16

Note 2 - Summary of Significant Accounting Policies: Estimates (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Estimates	Estimates The preparation of financial statements in accordance with generally accepted accounting principles in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and the reported amounts of revenues and expenses during the reporting period. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of the Company’s financial statements; accordingly, it is possible that the actual results could differ from these estimates and assumptions and could have a material effect on the reported amounts of the Company’s financial position and results of operations.

Note 2 - Summary of Significa17

Note 2 - Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Fair Value of Financial Instruments	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 December 31, 2016. 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 December 31, 2016.

Note 2 - Summary of Significa18

Note 2 - Summary of Significant Accounting Policies: Substantial Doubt about Going Concern (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Substantial Doubt about Going Concern	Going Concern As shown in the accompanying financial statements, the Company has incurred operating losses since inception. As of December 31, 2016, the Company has no financial resources with which to achieve its objectives and obtain profitability and positive cash flows. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $213,581 and the Company's working capital is $58,870. Achievement of the Company's objectives will be dependent upon the ability to obtain additional financing, and generate revenue from current and planned business operations, and control costs. The Company is in the development stage and has generated no operating income. The Company plans to fund its future operations by joint venturing or obtaining additional financing from investors and/or lenders. However there is no assurance that the Company will be able to achieve these objectives, therefore substantial doubt about its ability to continue as a going concern exists. The financial statements do not include adjustments relating to the recoverability of recorded assets nor the implication of associated bankruptcy costs should the Company be unable to continue as a going concern.

Note 2 - Summary of Significa19

Note 2 - Summary of Significant Accounting Policies: Provision For Taxes (Policies)	12 Months Ended
	Dec. 31, 2016
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

Note 2 - Summary of Significa20

Note 2 - Summary of Significant Accounting Policies: New Accounting Pronouncements, Policy (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
New Accounting Pronouncements, Policy	New Accounting Pronouncements The Company has evaluated the authoritative guidance issued during the year ended December 31, 2016 and does not expect the adoption of these standards to have a material effect on its financial position or results of operations.

Note 2 - Summary of Significa21

Note 2 - Summary of Significant Accounting Policies: Reclassifications (Policies)	12 Months Ended
	Dec. 31, 2016
Policies
Reclassifications	Reclassification Certain amounts in prior period financial statements have been reclassified to conform to the presentation in the current period financial statements. The reclassification had no effect on reported net losses, total assets or total equity.

Note 5 - Income Taxes_ Schedule

Note 5 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	12 Months Ended
	Dec. 31, 2016
Tables/Schedules
Schedule of Deferred Tax Assets and Liabilities	December 31, 2016 December 31, 2015 Net operating loss carryforwards 215,479 175,750 Deferred tax asset 75,418 61,500 Valuation allowance for deferred asset (75,418) (61,500) Net deferred tax asset - -

Note 1 - Organization and Des23

Note 1 - Organization and Description of Business (Details)	12 Months Ended
	Dec. 31, 2016
Details
Entity Incorporation, State Country Name	Delaware

Note 2 - Summary of Significa24

Note 2 - Summary of Significant Accounting Policies: Substantial Doubt about Going Concern (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Details
Accumulated deficit	$ 213,581	$ 173,848
Working capital	$ 58,870
Substantial Doubt about Going Concern, Management's Evaluation	The Company plans to fund its future operations by joint venturing or obtaining additional financing from investors and/or lenders. However there is no assurance that the Company will be able to achieve these objectives, therefore substantial doubt about its ability to continue as a going concern exists.

Note 3 - Common Stock (Details)

Note 3 - Common Stock (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2007
Details
Stock Issued During Period, Shares, Other		500,000
Stock Issued During Period, Value, Other		$ 35,000
Authorized capital	521,707,093
Common Stock, Class A, Par Value	$ 0.001
Common Stock, Class A, Shares Authorized	500,000,000
Common Stock, Class B, Shares Authorized	1,707,093
Preferred Stock, Shares Authorized	20,000,000
Shares converted from Class B to Class A, stock	115,319

Note 4 - Related Party Transa26

Note 4 - Related Party Transactions (Details)	12 Months Ended
	Dec. 31, 2016
Details
Related Party Transaction, Description of Transaction	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, additionally the value of the services provided by the Company’s president are nominal and immaterial to the financial statements.

Note 5 - Income Taxes (Details)

Note 5 - Income Taxes (Details)	12 Months Ended
	Dec. 31, 2016USD ($)
Details
Effective Income Tax Rate Reconciliation, Percent	35.00%
Operating Loss Carryforwards	$ 215,480
Valuation Allowances and Reserves, Period Increase (Decrease)	$ 13,920

Note 5 - Income Taxes_ Schedu28

Note 5 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Details
Deferred Tax Assets, Operating Loss Carryforwards	$ 215,479	$ 175,750
Deferred Tax Assets, Gross	75,418	61,500
Deferred Tax Assets, Valuation Allowance	$ (75,418)	$ (61,500)

Note 6 - Subsequent Events (Det

Note 6 - Subsequent Events (Details)	12 Months Ended
	Dec. 31, 2016
Subsequent Event January 6, 2017
Subsequent Event, Description	On January 6, 2017, we entered into a Share Exchange Agreement with owners of InterLok Key Management, Inc., a Texas corporation wherein we agreed to issue 56,655,891 restricted shares of our common stock in exchange for 100% of the outstanding shares of InterLok Key Management, Inc. common stock. InterLok Key Management, Inc. is engaged in the business of developing and licensing its patented key based encryption methods. On January 6, 2017, we completed our Share Exchange Agreement with the owners of InterLok, and issued 56,655,891 restricted shares of our common stock to 29 persons and/or entities in exchange for all of the outstanding shares of InterLok Key Management, Inc. common stock. Immediately following completion of the share exchange agreement, the new Board changed the Company name to Ironclad Encryption Corporation, moved the Company from Delaware to Nevada, and changed the stock symbol to IRNC from BTHI.
Subsequent Event January 16, 2017
Subsequent Event, Description	On January 16, 2017, the Delaney Equity Group, LLC received 75,000 shares of restricted Class A Common Stock at a base value of $0.15 per share, and options to purchase 75,000 shares of Class A Common Stock at $0.75 per share over a three year period, as part of a compensation package for brokerage services.
Subsequent Event January 20, 2017
Subsequent Event, Description	On January 20, 2017 as previously reported on Form 3A these Ironclad Officers received the following Class A Common stock options at a purchase price of $0.15 per share that vest on January 6, 2018: • JD McGraw, President: 1,000,000 shares per year over four years, for a total of 4,000,000 shares. And, a performance based option to purchase 10,000,000 shares at $0.15 per share if the stock price reaches $15 per share. • Daniel Lerner, Chief Technology: 1,000,000 per year over three year, for a total of 3,000,000 shares. • Jeff Barrett, Vice President of Planning: 250,000 per year over four years, for a total of 1,000,000 shares. • Len Walker, General Council: 250,000 shares per year over four years, for a total of 1,000,000 shares.
Subsequent Event January 31, 2017
Subsequent Event, Description	On January 31, 2017, Ironclad issued a Private Placement Memorandum (PPM) to accredited investors to sell up to 9,333,334 shares of the Company’s $0.001 par value restricted Class A Common Stock at a price of $0.15 per share and raise up to $1,400,000. As of March 27, 2017, 8,317,671 the shares have been sold to 31 investors. The PPM is expected to close on March 31, 2017. On January 31, 2017, per the terms of the Share Exchange Agreement on January 6, 2017, Paul Hatfield received 250,000 shares of restricted Class A Common Stock at a base value of $0.03 per share, options to purchase 350,000 shares of Class A Common Stock at $0.15 per share over a two year period, and $25,000 in cash.
Subsequent Event February 1, 2017
Subsequent Event, Description	On February 1, 2017, Halliburton Investor Relations received options to purchase 100,000 shares of Class A Common Stock at $0.15 per share over a three year period, as part of a compensation package for investor relations services.
Subsequent Event March 13, 2017
Subsequent Event, Description	On March 13, 2017, Lisa Morgan, an Ironclad Encryption writing consultant, received options to purchase 100,000 shares of Class A Common Stock at $0.15 per share over a four year period at 25,000 shares per year, with an option period of twenty-four months.
Subsequent Event March 15, 2017
Subsequent Event, Description	On March 15, 2017, two convertible notes, each in the amount of $30,000 were converted to 200,000 shares of restricted Class A Common Stock at $0.15 per share. The total 400,000 shares are accounted for in the above mentioned PPM offering. As well, the two owners of the convertible notes were each granted options to purchase 250,000 shares of Class A Common Stock at a purchase price of $0.15 until August 9, 2018.
Subsequent Event March 21, 2017
Subsequent Event, Description	On March 21, 2017, Mendy Ouzillou, an Ironclad marketing consultant received options to purchase 20,000 shares of Class A Common Stock at $0.15 per share over a three year period.