IRONCLAD ENCRYPTION (IRNC) 10-Q 20 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 16, 2017
Entity Registrant Name	Ironclad Encryption Corp
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
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	2,017
Document Fiscal Period Focus	Q3
Trading Symbol	irnc
Entity Incorporation, State Country Name	Delaware
Entity Information, Former Legal or Registered Name	Butte Highlands Mining Company
Common Class A
Entity Common Stock, Shares Outstanding		66,145,695
Common Class B
Entity Common Stock, Shares Outstanding		1,538,872

IronClad Encryption Corporation

IronClad Encryption Corporation and Subsidiary (Previously named Butte Highlands Mining Company) Condensed Consolidated Balance Sheets (Interim period unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 89,570	$ 50,682
Prepaid expenses and deposits	25,000
Total current assets	114,570	50,682
Other assets
Patents, net	123,457	68
Total assets	238,027	50,750
Current liabilities
Accounts payable	575,169
Accrued liabilities	257,591	12,539
Accrued interest	7,452	4,142
Convertible note payable, 12%	76,226
Convertible note payable, 10%	100,000
Additional convertible note payable, 10%	29,575
Advances payable to related party		10,662
Total current liabilities	1,046,013	27,343
Other liabilities
Convertible notes payable		210,000
Commitments and contingencies	0	0
Stockholders' equity (deficit)
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, 150,000,000 shares authorized; 66,145,695 and 58,098,908 shares issued and outstanding, respectively	66,145	58,099
Common stock, Class B, $0.001 par value, 1,707,093 shares authorized; 1,538,872 and 1,538,872 shares issued and outstanding, respectively	1,539	1,539
Additional paid-in capital	6,984,290	28,918
Subscriptions receivable		(81,481)
Accumulated deficit	(7,859,960)	(193,668)
Total stockholders' equity (deficit)	(807,986)	(186,593)
Total liabilities and stockholders' equity	$ 238,027	$ 50,750

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of financial position
Preferred Stock, Par Value	$ 0.001	$ 0.001
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	$ 0.001	$ 0.001
Common Stock, Class A, Shares Authorized	150,000,000	150,000,000
Common Stock, Class A, Shares Issued	66,145,695	58,098,908
Common Stock, Class A, Shares Outstanding	66,145,695	58,098,908
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	1,538,872	1,538,872
Common Stock, Class B, Shares Outstanding	1,538,872	1,538,872

IronClad Encryption Corporatio4

IronClad Encryption Corporation and Subsidiary (Previously named Butte Highlands Mining Company) Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income statement
Revenues	$ 0	$ 0	$ 0	$ 0
Operating expenses
Product development cost	467,803		800,645
General and administrative	939,554	25,307	2,519,215	46,258
Officer and director fees	1,089,489		2,659,219
Investor relations	170,466		929,516
Professional fees	211,678		329,939
Amortization	8	8	23	23
Total operating expenses	2,878,998	25,315	7,238,557	46,281
Loss from operations	(2,878,998)	(25,315)	(7,238,557)	(46,281)
Other income (expense)
Interest income	7		119
Interest expense	(38,149)	(1,541)	(40,225)	(1,541)
Financing fees	(387,629)		(387,629)
Total other income (expense)	(425,771)	(1,541)	(427,735)	(1,541)
Loss before taxes	(3,304,769)	(26,856)	(7,666,292)	(47,822)
Income taxes
Income tax benefit	0	0	0	0
Income tax expense	0	0	0	0
Total income tax benefit (expense)	0	0	0	0
Net loss	$ (3,304,769)	$ (26,856)	$ (7,666,292)	$ (47,822)
Net loss per common share, basic and diluted	$ (0.05)	$ (0.01)	$ (0.12)	$ (0.04)
Weighted average number of common stock shares outstanding, basic and diluted	67,638,739	3,000,000	66,334,415	1,111,111

IronClad Encryption Corporatio5

IronClad Encryption Corporation and Subsidiary (Previously named Butte Highlands Mining Company) Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities
Net loss	$ (3,304,769)	$ (26,856)	$ (7,666,292)	$ (47,822)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:
Amortization expense	8	8	23	23
Amortization of discounts on convertible notes payable			30,801
Common stock issued for services, administrative			349,000
Common stock issued for services, investor relations			367,500
Stock options issued for services, product development			284,940
Stock options issued for services, general and administrative			1,623,747
Stock options issued for officers and directors			2,322,317
Stock options issued for services, investor relations			415,508
Stock options issued for financing fees			287,629
Changes in assets and liabilities:
Increase in prepaid expenses and deposits			(25,000)
Increase in accounts payable			575,169
Increase in accrued liabilities			245,052
Increase in accrued interest			3,310	1,525
Net cash used by operating activities			(1,186,296)	(46,274)
Cash flows from investing activities
Patent applications			(123,412)
Net cash used by investing activities			(123,412)
Cash flows from financing activities
Advances payable to related party			(227)	(4,488)
Proceeds from issuance of common stock			983,693	2,000
Proceeds from issuing convertible notes payable			343,500	210,000
Transaction costs related to issuing convertible notes			(30,500)
Conversion of options			3,750
Cash received from merger			48,380
Net cash provided by financing activities			1,348,596	207,512
Increase in cash and cash equivalents			38,888	161,238
Cash, beginning of period			50,682
Cash, end of period	$ 89,570	$ 161,238	89,570	$ 161,238
Supplemental Cash Flow Information (no income taxes paid)
Interest paid			1,973
Common stock issued for convertible notes payable			210,000
Non-cash beneficial conversion rights, 10% note payable			$ 138,000

Note 1 - Organization, Recent H

Note 1 - Organization, Recent History, and Description of Businesses-Past and Present	9 Months Ended
	Sep. 30, 2017
Notes
Note 1 - Organization, Recent History, and Description of Businesses-Past and Present	Note 1 – Organization, Recent History, and Description of Businesses-Past and Present History and Recent Transaction The “Company” is the term used in these statements and notes to refer to the entity originally incorporated in the State of Delaware in 1929. The registered name of the Company until early in 2017 was Butte Highlands Mining Company (“Butte”). Butte was formed to explore and mine primarily for gold in the Butte Highlands’ “Only Chance” mine, south of Butte, Montana. Butte ceased operating as a mining company in 1942. The Company was reorganized in October 1996 for the purpose of acquiring and developing additional mineral properties. At the time of the 1996 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 of shareholders to authorize the reorganization, Butte obtained an order from the Superior Court of Spokane County, Washington appointing a trustee for the benefit of those stockholders who could not be located. By May 17, 2007, eleven years after the reorganization and very limited results from its mining activities, the Company had disposed of all of its historical mineral properties or mining claims and eventually became a “shell company” under the rules of the Securities and Exchange Commission (“SEC”). In 2009, Butte registered under the Securities Exchange Act of 1934, as amended, for the purpose of becoming a reporting company. The Company’s common stock then became listed on the OTCBB, but in time the Company also listed its common stock to trade on the OTC QB electronic market, one of the OTC Markets Group over-the-counter markets, where the Company’s common stock is listed. Now, following ten years of being a shell company with only nominal activity and limited cash or other assets, the business focus of Butte changed early in 2017. Most notably the Company raised significant capital to implement its new business and financial plans to further develop the licensing and commercial use of its patented encryption software. The change caused Butte to lose its previous shell company status. The Company also changed its state of incorporation to Nevada and its name to IronClad Encryption Corporation (“IronClad”) and changed the stock symbol from BTHI to IRNC to more appropriately reflect the fundamental change of its business to developing cyber encryption technology and away from its historical mining activities. On October 16, 2017, the Company redomiciled in Delaware from Nevada and adopted a certificate of incorporation and bylaws as a Delaware corporation. The terms “Company”, “IronClad” and “Butte” all refer to the same individual corporate entity, but the uses of the IronClad and Butte names are used to refer to different eras of the Company’s long history. The historical eras generally coincide with the changes in business focus before and after the first weeks of 2017. The business changes are a result of a common stock exchange transaction, accounted for as a “reverse merger”, between Butte and the owners of InterLok Key Management, Inc. (“InterLok”; at the time an independent and privately-held Texas corporation) whereby InterLok became a wholly-owned subsidiary of Butte. Butte issued shares of its common stock in exchange for acquiring all of the common stock of InterLok. At present, InterLok is the only subsidiary of the Company and InterLok’s patents and line of business now are the main basis of the business of the Company on a consolidated basis. Description of Businesses: Present and Past InterLok Key Management, Inc. (formerly InterLok Key Management, LLC) is a company developing and licensing cyber software technology to secure data files (stored and at rest) and electronic communications (in motion from electronic transmission over the internet or through telephone systems). Data at rest and in motion are both safeguarded from unauthorized access through the use of dynamic encryption and perpetual authentication. InterLok was formed in Texas on June 12, 2006 and incorporated ten years later on June 16, 2016. On January 6, 2017 InterLok entered into a Share Exchange Agreement ("Share Exchange") with Butte Highlands Mining Company. Under the terms of the agreement, the shareholders of InterLok Key Management, Inc. exchanged all 56,655,891 outstanding shares of InterLok’s common stock for 56,655,891 shares of Class A common stock of Butte Highlands Mining Company. The Share Exchange was treated as a “reverse merger” with InterLok Key Management, Inc. which is deemed--for accounting recognition purposes—as the accounting acquirer and Butte Highlands Mining Company deemed the accounting acquiree under the acquisition method of accounting. The reverse merger is deemed a recapitalization and the consolidated financial statements represent the substantive continuation of the operations and thus the prior year financial statements of operations are the operating results of its subsidiary InterLok Key Management, Inc., while the capital structure (in terms of authorized preferred and common stock) of its parent Butte Highlands Mining Company remains intact. Principles of consolidation The accompanying unaudited consolidated financial statements include the accounts of IronClad and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. The above unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, these unaudited interim consolidated 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 and the rules of the SEC. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2016. In the opinion of management, the unaudited interim consolidated financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim periods presented. Operating results for the nine month period ended September 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Notes
Note 2 - Summary of Significant Accounting Policies	Note 2 – Summary of Significant Accounting Policies This summary of significant accounting policies is presented to assist in understanding the Company’s interim condensed consolidated 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. Going Concern As shown in the accompanying financial statements, the Company has incurred cumulative operating losses since inception. As of September 30, 2017, the Company has limited financial resources with which to achieve its objectives and attain profitability and positive cash flows from operations. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $7,859,960. The Company's working capital deficit is $931,443 (current assets minus current liabilities; current liabilities in this case being greater than current assets). Achievement of the Company's objectives will depend on its ability to obtain additional financing, to generate revenue from current and planned business operations, and to effectively manage product and software development, operating and capital costs. The Company is in a development stage and has generated no operating revenue, profits or positive cash flows from operations. The Company plans to fund its future operations by potential sales of its common stock or by issuing debt securities. However, there is no assurance that IronClad 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 IronClad be unable to continue as a going concern. Fair Value Measures The Company's financial instruments, as defined by the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) 825-10-50 Financial Instruments—Overall (and subtopics) The standards under ASC 820 Fair Value Measurement · · · The Company did not have any assets measured at fair value other than cash and deposits at September 30, 2017 and at December 31, 2016. Provision for Income Taxes Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition ASC 740-10-25-5 Capitalization of Patent and Trademark Costs The Company capitalizes its legal, patent agent and related filing fees and costs associated with the patents it holds and is developing. The amounts are carried as an intangible asset in the financial statements. The costs of the patents or trademarks are amortized ratably (expensed) over the expected useful technological or economic life of the individual assets. The legal life of a patent is typically about 17 years. See Note 3. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified to provide greater line item detail for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. This change in classification has no effect on previously reported cash flows in the Condensed Consolidated Statement of Cash Flows, and had no effect on the previously reported Condensed Consolidated Statements of Operations for any period New Accounting Requirements and Disclosures Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

Note 3 - Patents

Note 3 - Patents	9 Months Ended
	Sep. 30, 2017
Notes
Note 3 - Patents	Note 3 – Patents Patents and trademarks are as follows: September 30, 2017 September 30, 2016 Patents and trademarks under development $ 123,412 $ - Patents issued 398 398 Less accumulated amortization (353) (315) 45 83 Patents, net $ 123,457 $ 83 Amortization expense for intangible assets during the nine month periods ended September 30, 2017 and 2016 was $23 and $23, respectively. Costs totaling $123,412 for new patents and trademarks under development (but as yet not awarded) are capitalized at September 30, 2017. The patents and trademarks under development will not be amortized until formally issued. In addition to its three original patents IronClad also has six, and soon to be nine, patents pending (both in the US and internationally). These pending patents expand upon the initial scope of the original “seminal” patents and provide up to 20 additional years of enforceable intellectual property rights regarding authentication, validation, and encryption for all electronic transmissions associated devices. IronClad’s current and original patent portfolio includes three granted US patents. One patent expired in September 2017 and two are scheduled to expire in 2018.

Note 4 - Concentration of Credi

Note 4 - Concentration of Credit Risk	9 Months Ended
	Sep. 30, 2017
Notes
Note 4 - Concentration of Credit Risk	Note 4 – Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At September 30, 2017 and 2016, the Company had no amounts on deposit in excess of the FDIC insured limit.

Note 5 - Related Party Transact

Note 5 - Related Party Transaction	9 Months Ended
	Sep. 30, 2017
Notes
Note 5 - Related Party Transaction	Note 5 – Related Party Transactions The Company paid $15,249 in consulting fees during 2016 to Eagle Mountain 21, LLC, an entity owned by an officer of the Company. At December 31, 2016 the Company owed an additional $10,662 amount to that same officer for operating costs incurred and submitted for reimbursement during 2016. Reimbursement to the officer was made at the start of the quarter ended June 30, 2017. See also Note 10 regarding stock option awards to management of the Company.

Note 6 - Convertible Notes Paya

Note 6 - Convertible Notes Payable	9 Months Ended
	Sep. 30, 2017
Notes
Note 6 - Convertible Notes Payable	Note 6 – Convertible Notes Payable Securities Purchase Agreement On June 26, 2017 IronClad entered into a Securities Purchase Agreement to issue a 12% convertible note payable for an aggregate principal amount of $78,500 with the intent of meeting certain conditions precedent to closing and funding on or before July 7, 2017. The closing conditions were met prior to that date and the convertible note payable was closed and funded on July 6, 2017. The Company received cash proceeds of $75,000 net of transaction costs of $3,500. The $3,500 is recorded as a discount amount on the note payable and will be amortized as interest expenses over the life of the note. $1,226 was amortized in the three months ended September 30, 2017; accrued interest payable at September 30, 2017 was $2,503. The note matures on March 30, 2018 and interest costs accrue on the unpaid principal balance at 12% annually until March 30, 2018, and after that if not paid at maturity interest accrues annually at 22% until the principal amount and all interest accrued and unpaid are paid. The holder of the note, at its sole election, may convert the note into shares of common stock of the Company at any time during the period beginning on the date which is one hundred and eighty days following the date of the note (dated June 26, 2017) and ending on the later of i) the maturity date, or ii) the date of payment of a default amount, if any. The shares to be issued are a function of a variable conversion price which is 65% of a market price defined to be the lowest one day closing bid price for the Company’s common stock during the fifteen day trading period ending on the last trading day prior to exercising the conversion right. The Company will keep available authorized shares reserved, initially 289,846 shares, but in any event authorized shares equal to six times the number of shares that would be issuable upon full conversion of the note from time to time. The conversion feature of the note represents an embedded derivative. Once definitive pricing facts and circumstances are known in late December (and which are not known at present) regarding the market value of IronClad’s common stock at that time, the cost of that derivative will be determined using a Black-Scholes valuation model. At the close of accounting periods subsequent to the initial valuation a redetermination of the derivative valuation will be made using an updated Black-Scholes valuation model. Any gain or loss in the liability value will be recognized as a fair valuation adjustment to earnings. Commitment Note and Convertible Note On August 24, 2017, IronClad entered into an Investment Agreement to establish an equity line of funding for the potential future issuance and purchase of IronClad’s shares of Class A common stock. See Note 7. As consideration for its commitment to purchase shares of IronClad’s Class A common stock pursuant to the Investment Agreement, IronClad issued to the counterparty of the agreement a 7 month 10% convertible promissory note (the “Commitment Note”) in the principal amount of $100,000. The Commitment Note matures on March 24, 2018. The Commitment Note is convertible into shares of IronClad’s Class A common stock at the fixed price of $3.25 per share; provided, however, that at any time and from time to time after a default (as of September 30, 2017, and to the date of the filing of this report, no events of default have occurred) occurs solely due to the fact the Commitment Note is not retired on or before the maturity date, all or any part of the Commitment Note is convertible into shares of Class A common stock of the Company at a per share price equal to the lower of: (a) $3.25 or (b) 65% of the average of the two lowest per share trading prices of the Class A common stock during the twenty consecutive trading days prior to the conversion date. The Commitment Note is included as a financing fee expense at the date of the transaction. The Commitment Note was to finance the $100,000 cost of the commitment fee to the counterparty of the Investment Agreement, and is accordingly included in the financing fee expenses for the period ended September 30, 2017. The amount of the commitment fee can be reduced by $35,000 or $17,500 if a registration statement registering the shares that would be issued under the equity line becomes effective within 90 or 135 days, respectively, of August 24, 2017. As of the filing date of this report the registration statement has not become effective. On August 24, 2017, in connection with the entry into the Investment Agreement, IronClad also issued a 10% convertible note (the “Convertible Note”) in an aggregate principal amount of $330,000 with a 10% original issue discount (“OID”). The initial consideration in the amount of $165,000 was funded on August 24, 2017. The Company received net proceeds of $150,000 (which represents the deduction of the 10% original issue discount for the note holder’s due diligence and legal fees). The Company may make additional borrowings in such amounts and at such dates as the note holder may choose in its sole discretion. The balance of an individual borrowings mature seven months from its funding date. The Convertible Note also has an embedded beneficial conversion feature (“BCF”) based on a stated conversion price of $1.00 per share. The market price of a share of IronClad’s common stock at the time of the first borrowing under the note was $3.50 thus establishing an intrinsic value of $2.50 on that date. The Company received the first borrowing for $165,000 under the Convertible Note on August 24, 2017 and net cash proceeds of $150,000 were received after deducting for the original issue discount and lender transaction costs of $15,000. An additional $12,000 of costs was incurred by IronClad directly relating to the note. Both the $15,000 and the $12,000 are recorded as discount amounts on the $165,000 note payable and are amortized as interest expenses over the life of the borrowing. The maturity date of this borrowing under the note is seven months from its funding date which is March 24, 2018. The valuation of the BCF related to the $165,000 borrowing on the Convertible Note and with an intrinsic value of $2.50 per share (based on a $3.50 closing price less the $1.00 per share conversion price) is approximately $424,407 using a Black-Scholes valuation model. That amount is recorded as a contra-note payable amount (similar to the recorded OID and transaction costs), but only for an amount not in excess of and thus capped by the otherwise undiscounted amount of the note payable. The amount of the derivative formally recorded is $138,000 ($165,000 net of $27,000) and will be amortized as interest expense over the life of the loan. Subsequent to September 30, 2017, a second borrowing of $82,500 under the Convertible Note for $330,000 was closed and funded on October 23, 2017. The Company received net proceeds of $75,000 after deducting for original issue discount and lender transaction costs of $7,500. An additional $6,000 of costs was incurred by IronClad relating to the Convertible Note. Both the $7,500 and the $6,000 will be recorded as discount amounts on the $82,500 note payable and amortized as interest expenses over the life of the borrowing. The maturity date of this borrowing under the Convertible Note is also defined to be seven months from its borrowing date which is May 24, 2018. The market price of a share of IronClad’s common stock at the time of funding was $4.40 making the intrinsic value of the derivative $3.40. The valuation of the BCF is estimated to be approximately $289,000 and is capped at $69,000, the otherwise undiscounted amount of the note payable. InterLok Convertible Notes On August 8, 2016, InterLok issued two 5% convertible senior promissory notes for a principal amount of $30,000 each and, on August 16, 2016, issued one 5% convertible senior promissory note for $150,000 for an aggregate principal amount of $210,000. Interest costs accrued on the unpaid principal balances at five percent (5%) annually until the principal amount and all interest accrued thereon was paid at the earlier of 1) the maturity date two years later on August 8, 2018 or August 16, 2018, respectively, or 2) on the conversion of the notes into shares of common stock at a price equal to a conversion price of $0.15 per share. The notes automatically converted into shares of common stock at a conversion price of $0.15 per share, subject to adjustment under certain circumstances in the event of an acquisition transaction or a public offering event. The Company was precluded from entering into an acquisition or public offering event without first obtaining the prior written approval of any of the note holders. If any holder declined to provide approval for an acquisition transaction or public offering, the Company could have immediately prepaid the entire outstanding principal amounts and accrued interest amounts on the notes. Two of the notes contained the option to purchase additional shares of common stock. During the period ended March 31, 2017, the principal balances of all three 5% convertible senior promissory notes were converted into 1,400,000 shares of IronClad Class A common stock. Accrued interest of $6,115 on the notes was paid in cash during the quarter ended June 30, 2017, $1,973 of which was incurred as interest expense in 2017.

Note 7 - Common Stock

Note 7 - Common Stock	9 Months Ended
	Sep. 30, 2017
Notes
Note 7 - Common Stock	Note 7 – Common Stock During the three month period ended March 31, 2017, i) the Company issued 5,843,954 shares of its Class A common stock at $0.15 per share for cash in the amount of $876,597 ($35,343 of which was only subscribed and still receivable at December 31, 2016), and ii) 75,000 shares at $0.15 per share for investment banking services in the amount of $11,250. Additionally, i) the three convertible note holders converted $210,000 into 1,400,000 shares of Class A common stock, and ii) 250,000 shares were issued pursuant to the Share Exchange Agreement at $0.03 per share. Also, iii) subscriptions receivable that were outstanding at December 31, 2016 in the amount of $81,481 were collected. During the three month period ended June 30, 2017, the Company issued i) 240,333 shares of Class A common stock at $0.15 per share for cash in the amount of $36,050 pursuant to a Section 4(a)2 private placement offering, ii) 25,000 shares at $0.15 per share for the conversion of stock options (see Note 10), and iii) 75,000 shares at $2.90 per share for investment banking services valued at $217,500. During the three month period ended September 30, 2017, the Company issued i) 100,000 shares of Class A common stock at $3.49 per share for consulting services in the amount of $349,000 and ii) 37,500 shares at $3.50 per share for investment banking services valued at $131,250. On August 24, 2017 IronClad entered into an Investment Agreement for the potential future issuance and purchase of shares of its Class A common stock to establish an equity line of funding to IronClad. The agreement enables IronClad to issue stock to the counterparty of the agreement in exchange for cash amounts under certain defined conditions for the purchase of IronClad’s stock. In addition to the equity line, the agreement also included IronClad entering into the Commitment Note in the principal amount of $100,000 to finance the commitment fee of the Investment Agreement and the Convertible Note to borrow up to $330,000 (of which $165,000 was borrowed on August 24, 2017 and a subsequent $82,500 was borrowed on October 23, 2017). See Note 6. A precondition to selling shares of our stock and thus making any draws under the equity line is to have in place a registration statement that has become effective. The Company filed a registration statement on October 17; that registration statement as of the date of the filing of this report has not gone effective. Consequently, as of the date of the filing of this report, no amounts of funding have occurred under the equity line.

Note 8 - Income Taxes

Note 8 - Income Taxes	9 Months Ended
	Sep. 30, 2017
Notes
Note 8 - Income Taxes	Note 8 – Income Taxes Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition. Deferred income tax amounts reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting purposes. Significant components of the deferred tax asset amounts at an anticipated tax rate of 35% for the periods ended September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 December 31, 2016 Net operating losses carryforwards $ 2,901,083 $ 193,668 Deferred tax asset $ 1,015,379 $ 67,780 Valuation allowance for deferred asset (1,015,379) (67,780) Net deferred tax asset $ 0 $ 0 At September 30, 2017, the Company has net operating loss carryforwards of approximately $2,901,083 which will begin to expire in the year 2033. The increase in the allowance account amount (and also in the deferred tax asset amount) from December 31, 2016 to September 30, 2017 was $947,599. IronClad is subject to federal level income taxes under the jurisdiction of the US, but is not subject to income taxes at any state level. Tax periods that may still be subject to review by the Internal Revenue Service are the years 2014, 2015, and 2016. The Company has not identified any aggressive tax positions.

Note 9 - Share Exchange Agreeme

Note 9 - Share Exchange Agreement	9 Months Ended
	Sep. 30, 2017
Notes
Note 9 - Share Exchange Agreement	Note 9 – Share Exchange Agreement On January 6, 2017, the Company entered into a Share Exchange Agreement with InterLok Key Management, Inc. wherein Butte agreed to issue 56,655,891 restricted shares of Butte’s 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, Butte completed its Share Exchange Agreement with the owners of InterLok, and issued 56,655,891 restricted shares of Butte’s common stock to 29 persons and entities in exchange for all of the outstanding shares of InterLok Key Management, Inc.’s common stock. Immediately following completion of the share exchange agreement the Company’s new board of directors elected, through a series of board resolutions and regulatory filings, to change the Company’s name to IronClad Encryption Corporation from Butte, to move the Company to Nevada from Delaware, and to change its stock trading symbol to IRNC from BTHI. The Share Exchange was treated as a reverse merger with InterLok Key Management, Inc. deemed, for accounting recognition purposes, the accounting acquirer and Butte Highlands Mining Company deemed the accounting acquiree under the acquisition method of accounting. The reverse merger is deemed a recapitalization and the unaudited pro forma consolidated financial statements of operations represent the substantive continuation of the operations and thus the financial statements of InterLok Key Management, Inc., while the capital structure (with respect to authorized, issued and outstanding shares of preferred and common stock) of Butte Highlands Mining Company--now using the name IronClad--remains intact.

Note 10 - Stock Options and War

Note 10 - Stock Options and Warrants	9 Months Ended
	Sep. 30, 2017
Notes
Note 10 - Stock Options and Warrants	Note 10 – Stock Options and Warrants During the three month period ended March 31, 2017, the Company awarded 1,045,000 stock options and warrants for services and conversions of convertible notes valued at $1,305,565 and 9,000,000 stock options to officers of IronClad valued at $622,045. Of the total 10,145,000 options and warrants awarded, 1,045,000 vested immediately and received full expense recognition in the three month period ended March 31, 2017. The remaining 9,883,470 options vest periodically over the subsequent three years and will be expensed as they periodically vest. In addition, 25,000 stock options that were awarded during the three month period ending March 31, 2017 were exercised for cash in the amount of $3,750. During the three month period ended June 30, 2017, the Company awarded 2,945,000 stock options for services valued at $4,657,850 (using the Black-Scholes option pricing model) and 500,000 stock options to an officer of IronClad valued at $731,659 (using the Black-Scholes option pricing model). Of the total 3,445,000 options awarded during the period 85,000 vested immediately and received full expense recognition during the three month period ended June 30, 2017. The remaining 3,360,000 options vest periodically over the next two to four years and will be expensed as they periodically vest. During the three month period ended September 30, 2017, the Company recorded the award of 372,500 stock options for services valued at $261,991 (using the Black-Scholes option pricing model) and 82,500 stock warrants for financing fees valued at $287,629 (using the Black-Scholes option pricing model). Of the total 455,000 options and warrants awarded during the period 155,000 vested immediately and received full expense recognition during the three month period ended September 30, 2017. The remaining 300,000 options vest periodically over the next four years and will be expensed as they periodically vest. The fair value of stock options and warrants is estimated on the date of each award using the Black-Scholes option pricing model to value the stock option or warrant based on its terms and conditions. The tables below summarize the assumptions used to estimate the fair values of the options and warrants: Number of Options* Date Issued Exercise Price Risk-free Interest Rate Volatility Life of Options in Years 75,000 01/16/17 $0.75 1.54% 226.01% 3.00 6,000,000 01/20/17 $0.15 1.54% 220.00% 3.00 3,000,000 01/20/17 $0.15 1.54% 220.00% 4.00 350,000 01/31/17 $0.15 1.19% 132.84% 1.93 100,000 02/01/17 $0.15 1.22% 134.90% 2.00 100,000 03/13/17 $0.15 1.40% 144.84% 2.00 20,000 03/21/17 $0.15 1.54% 233.07% 3.00 5,000 04/30/17 $0.75 1.45% 219.35% 3.00 1,700,000 05/05/17 $1.47 1.71% 565.34% 4.00 1,000,000 05/05/17 $1.47 1.32% 202.99% 2.00 80,000 05/31/17 $0.75 1.44% 196.06% 3.00 660,000 06/12/17 $2.50 1.64% 589.85% 4.00 5,000 06/30/17 $3.49 1.55% 197.13% 3.00 5,000 07/31/17 $3.50 1.51% 170.61% 3.00 300,000 07/31/17 $3.16 1.63% 296.38% 4.00 37,500 08/25/17 $2.50 1.62% 170.38% 3.00 25,000 08/31/17 $3.75 1.44% 170.57% 3.00 13,462,500 Number of Warrants Date Issued Exercise Price Risk-free Interest Rate Volatility Life of Warrants in Years 500,000 03/15/17 $0.15 1.02% 114.94% 1.40 82,500 08/24/17 $3.00 1.63% 285.16% 4.00 582,500 Options* and Warrants 14,045,000 *The number of outstanding options above does not include an option awarded to the Company’s President to purchase 10,000,000 shares of Class A common stock at an exercise price of $1.00 per share. The option is only exercisable under certain limited circumstances, one of which is that the market price of the Class A common stock reaches a price of $15.00 per share. Once vested, these additional options must be exercised within two years of vesting. The number of options and warrants including these 10,000,000 options totals 24,045,000.

Note 11 - Subsequent Events

Note 11 - Subsequent Events	9 Months Ended
	Sep. 30, 2017
Notes
Note 11 - Subsequent Events	Note 11 – Subsequent Events On October 23, 2017, the Company borrowed an additional $82,500 under the Convertible Note, the second borrowing made under the Convertible Note bringing the total cumulative borrowings to $247,500 and leaving $82,500 available for future borrowings under the Convertible Note. The borrowing under the Convertible Note is subject to a 10% original issue discount for due diligence. The Company received net proceeds of $75,000 (which represents the deduction of the 10% OID and legal fees). IronClad also incurred additional direct costs of $6,000 related to closing the transaction. The borrowed amount has a maturity date of about May 24, 2018, which is seven months after the date of the borrowing. The underlying Convertible Note has a BCF relating to the $1.00 conversion price per common share which is well below the $4.40 closing price per share on October 23, 2017. The valuation of the BCF based on an intrinsic value of $3.40 per share and using a Black-Scholes pricing model is estimated, in the aggregate, to be approximately $289,000, $69,000 of which will be recorded as a contra-liability, or “discount”. The $69,000 amount is effectively a capped amount determined by the borrowed amount less the $7,500 OID of the lender and the $6,000 of direct transaction costs incurred by IronClad. See Note 6.

Note 2 - Summary of Significa17

Note 2 - Summary of Significant Accounting Policies: Going Concern (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Going Concern	Going Concern As shown in the accompanying financial statements, the Company has incurred cumulative operating losses since inception. As of September 30, 2017, the Company has limited financial resources with which to achieve its objectives and attain profitability and positive cash flows from operations. As shown in the accompanying balance sheets and statements of operations, the Company has an accumulated deficit of $7,859,960. The Company's working capital deficit is $931,443 (current assets minus current liabilities; current liabilities in this case being greater than current assets). Achievement of the Company's objectives will depend on its ability to obtain additional financing, to generate revenue from current and planned business operations, and to effectively manage product and software development, operating and capital costs. The Company is in a development stage and has generated no operating revenue, profits or positive cash flows from operations. The Company plans to fund its future operations by potential sales of its common stock or by issuing debt securities. However, there is no assurance that IronClad 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 IronClad be unable to continue as a going concern.

Note 2 - Summary of Significa18

Note 2 - Summary of Significant Accounting Policies: Fair Value Measures (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Fair Value Measures	Fair Value Measures The Company's financial instruments, as defined by the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) 825-10-50 Financial Instruments—Overall (and subtopics) The standards under ASC 820 Fair Value Measurement · · · The Company did not have any assets measured at fair value other than cash and deposits at September 30, 2017 and at December 31, 2016.

Note 2 - Summary of Significa19

Note 2 - Summary of Significant Accounting Policies: Provision For Income Taxes (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Provision For Income Taxes	Provision for Income Taxes Income taxes are provided based upon the liability method of accounting pursuant to ASC 740-10-25 Income Taxes – Recognition ASC 740-10-25-5

Note 2 - Summary of Significa20

Note 2 - Summary of Significant Accounting Policies: Capitalization of Internal Costs, Policy (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Capitalization of Internal Costs, Policy	Capitalization of Patent and Trademark Costs The Company capitalizes its legal, patent agent and related filing fees and costs associated with the patents it holds and is developing. The amounts are carried as an intangible asset in the financial statements. The costs of the patents or trademarks are amortized ratably (expensed) over the expected useful technological or economic life of the individual assets. The legal life of a patent is typically about 17 years. See Note 3.

Note 2 - Summary of Significa21

Note 2 - Summary of Significant Accounting Policies: Reclassifications (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
Reclassifications	Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified to provide greater line item detail for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations. This change in classification has no effect on previously reported cash flows in the Condensed Consolidated Statement of Cash Flows, and had no effect on the previously reported Condensed Consolidated Statements of Operations for any period

Note 2 - Summary of Significa22

Note 2 - Summary of Significant Accounting Policies: New Accounting Pronouncements, Policy (Policies)	9 Months Ended
	Sep. 30, 2017
Policies
New Accounting Pronouncements, Policy	New Accounting Requirements and Disclosures Accounting standards that have been issued or proposed by FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its financial condition, results of operations, cash flows or disclosures.

Note 3 - Patents_ Schedule of I

Note 3 - Patents: Schedule of Indefinite-Lived Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Indefinite-Lived Intangible Assets	September 30, 2017 September 30, 2016 Patents and trademarks under development $ 123,412 $ - Patents issued 398 398 Less accumulated amortization (353) (315) 45 83 Patents, net $ 123,457 $ 83

Note 8 - Income Taxes_ Schedule

Note 8 - Income Taxes: Schedule of Deferred Tax Assets (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Deferred Tax Assets	September 30, 2017 December 31, 2016 Net operating losses carryforwards $ 2,901,083 $ 193,668 Deferred tax asset $ 1,015,379 $ 67,780 Valuation allowance for deferred asset (1,015,379) (67,780) Net deferred tax asset $ 0 $ 0

Note 10 - Stock Options and W25

Note 10 - Stock Options and Warrants: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	Number of Options* Date Issued Exercise Price Risk-free Interest Rate Volatility Life of Options in Years 75,000 01/16/17 $0.75 1.54% 226.01% 3.00 6,000,000 01/20/17 $0.15 1.54% 220.00% 3.00 3,000,000 01/20/17 $0.15 1.54% 220.00% 4.00 350,000 01/31/17 $0.15 1.19% 132.84% 1.93 100,000 02/01/17 $0.15 1.22% 134.90% 2.00 100,000 03/13/17 $0.15 1.40% 144.84% 2.00 20,000 03/21/17 $0.15 1.54% 233.07% 3.00 5,000 04/30/17 $0.75 1.45% 219.35% 3.00 1,700,000 05/05/17 $1.47 1.71% 565.34% 4.00 1,000,000 05/05/17 $1.47 1.32% 202.99% 2.00 80,000 05/31/17 $0.75 1.44% 196.06% 3.00 660,000 06/12/17 $2.50 1.64% 589.85% 4.00 5,000 06/30/17 $3.49 1.55% 197.13% 3.00 5,000 07/31/17 $3.50 1.51% 170.61% 3.00 300,000 07/31/17 $3.16 1.63% 296.38% 4.00 37,500 08/25/17 $2.50 1.62% 170.38% 3.00 25,000 08/31/17 $3.75 1.44% 170.57% 3.00 13,462,500

Note 10 - Stock Options and W26

Note 10 - Stock Options and Warrants: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables)	9 Months Ended
	Sep. 30, 2017
Tables/Schedules
Schedule of Stockholders' Equity Note, Warrants or Rights	Number of Warrants Date Issued Exercise Price Risk-free Interest Rate Volatility Life of Warrants in Years 500,000 03/15/17 $0.15 1.02% 114.94% 1.40 82,500 08/24/17 $3.00 1.63% 285.16% 4.00 582,500 Options* and Warrants 14,045,000

Note 1 - Organization, Recent27

Note 1 - Organization, Recent History, and Description of Businesses-Past and Present (Details)	9 Months Ended
	Sep. 30, 2017
Details
Entity Information, Former Legal or Registered Name	Butte Highlands Mining Company
Entity Incorporation, State Country Name	Delaware
Consolidation, Policy	Principles of consolidation The accompanying unaudited consolidated financial statements include the accounts of IronClad and its wholly-owned subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. The above unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, these unaudited interim consolidated 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 and the rules of the SEC. These unaudited interim consolidated financial statements should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2016.

Note 2 - Summary of Significa28

Note 2 - Summary of Significant Accounting Policies: Going Concern (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Details
Accumulated deficit	$ 7,859,960	$ 193,668
Working capital deficit	$ 931,443
Substantial Doubt about Going Concern, Management's Evaluation	The Company plans to fund its future operations by potential sales of its common stock or by issuing debt securities. However, there is no assurance that IronClad will be able to achieve these objectives, therefore substantial doubt about its ability to continue as a going concern exists.

Note 3 - Patents_ Schedule of29

Note 3 - Patents: Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016
Details
Finite-Lived Intangible Assets, Gross	$ 123,412
Patents issued	398		$ 398
Finite-Lived Intangible Assets, Accumulated Amortization	(353)		(315)
Patents less accumulated amortization	45		83
Patents, net	$ 123,457	$ 68	$ 83

Note 3 - Patents (Details)

Note 3 - Patents (Details) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Details
Amortization of Intangible Assets	$ 23	$ 23
Other Intangible Assets, Net	$ 123,412

Note 5 - Related Party Transa31

Note 5 - Related Party Transaction (Details)	12 Months Ended
	Dec. 31, 2016USD ($)
Details
Consulting fees paid, related party	$ 15,249
Accrued consulting fees, related party	$ 10,662

Note 6 - Convertible Notes Pa32

Note 6 - Convertible Notes Payable (Details) - USD ($)	Jun. 26, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2016	Aug. 16, 2016	Aug. 08, 2016
Securities Purchase Agreement Aggregate Principal	$ 78,500
Cash proceeds from securities purchase agreement, net	75,000
Debt Related Commitment Fees and Debt Issuance Costs	$ 3,500
Amortization of Debt Issuance Costs		$ 1,226
Proceeds from securities purchase agreement, accrued interest payable		2,503
Convertible note payable, 10%		$ 100,000				$ 100,000
Convertible notes payable							$ 210,000
Convertible debt				$ 210,000
CommonStockIssuedForConvertibleDebtStockIssued				1,400,000
Interest paid in cash			$ 6,115
Interest expense on convertible notes					$ 1,973
Securities Purchase Agreement
Debt Instrument, Description						The note matures on March 30, 2018 and interest costs accrue on the unpaid principal balance at 12% annually until March 30, 2018, and after that if not paid at maturity interest accrues annually at 22% until the principal amount and all interest accrued and unpaid are paid. The holder of the note, at its sole election, may convert the note into shares of common stock of the Company at any time during the period beginning on the date which is one hundred and eighty days following the date of the note (dated June 26, 2017) and ending on the later of i) the maturity date, or ii) the date of payment of a default amount, if any.
Commitment Note
Debt Instrument, Description						On August 24, 2017, IronClad entered into an Investment Agreement to establish an equity line of funding for the potential future issuance and purchase of IronClad’s shares of Class A common stock. See Note 7. As consideration for its commitment to purchase shares of IronClad’s Class A common stock pursuant to the Investment Agreement, IronClad issued to the counterparty of the agreement a 7 month 10% convertible promissory note (the “Commitment Note”) in the principal amount of $100,000. The Commitment Note matures on March 24, 2018. The Commitment Note is convertible into shares of IronClad’s Class A common stock at the fixed price of $3.25 per share; provided, however, that at any time and from time to time after a default (as of September 30, 2017, and to the date of the filing of this report, no events of default have occurred) occurs solely due to the fact the Commitment Note is not retired on or before the maturity date, all or any part of the Commitment Note is convertible into shares of Class A common stock of the Company at a per share price equal to the lower of: (a) $3.25 or (b) 65% of the average of the two lowest per share trading prices of the Class A common stock during the twenty consecutive trading days prior to the conversion date. The Commitment Note is included as a financing fee expense at the date of the transaction. The Commitment Note was to finance the $100,000 cost of the commitment fee to the counterparty of the Investment Agreement, and is accordingly included in the financing fee expenses for the period ended September 30, 2017. The amount of the commitment fee can be reduced by $35,000 or $17,500 if a registration statement registering the shares that would be issued under the equity line becomes effective within 90 or 135 days, respectively, of August 24, 2017. As of the filing date of this report the registration statement has not become effective.
Convertible Note
Debt Instrument, Description						On August 24, 2017, in connection with the entry into the Investment Agreement, IronClad also issued a 10% convertible note (the “Convertible Note”) in an aggregate principal amount of $330,000 with a 10% original issue discount (“OID”). The initial consideration in the amount of $165,000 was funded on August 24, 2017. The Company received net proceeds of $150,000 (which represents the deduction of the 10% original issue discount for the note holder’s due diligence and legal fees). The Company may make additional borrowings in such amounts and at such dates as the note holder may choose in its sole discretion. The balance of an individual borrowings mature seven months from its funding date. The Convertible Note also has an embedded beneficial conversion feature (“BCF”) based on a stated conversion price of $1.00 per share. The market price of a share of IronClad’s common stock at the time of the first borrowing under the note was $3.50 thus establishing an intrinsic value of $2.50 on that date.
Convertible Note aggregate principal amount						$ 330,000
Convertible Note Initial Consideration						165,000
Convertible Note Net Proceeds						$ 150,000
Interlok
Debt Instrument, Description						On August 8, 2016, InterLok issued two 5% convertible senior promissory notes for a principal amount of $30,000 each and, on August 16, 2016, issued one 5% convertible senior promissory note for $150,000 for an aggregate principal amount of $210,000. Interest costs accrued on the unpaid principal balances at five percent (5%) annually until the principal amount and all interest accrued thereon was paid at the earlier of 1) the maturity date two years later on August 8, 2018 or August 16, 2018, respectively, or 2) on the conversion of the notes into shares of common stock at a price equal to a conversion price of $0.15 per share.
Convertible notes payable								$ 150,000	$ 3,000,060,000
Convertible debt								$ 210,000

Note 7 - Common Stock (Details)

Note 7 - Common Stock (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2017
Stock issued for cash, stock		$ 240,333	$ 5,843,954
Stock issued for cash, value		$ 36,050	$ 876,597
Common Stock, Shares Subscribed but Unissued			35,343
Stock issued for investment banking services, stock	37,500	75,000	75,000
Stock issued for investment banking services, value	$ 131,250	$ 217,500	$ 11,250
Convertible debt			$ 210,000
Stock Issued During Period, Shares, Other			1,400,000
Subscriptions receivable collected			$ 81,481
Stock Issued During Period, Shares, Conversion of Convertible Securities		25,000
Stock issued for consulting services, stock	100,000
Stock issued for consulting services, value	$ 349,000
Convertible note payable, 10%	$ 100,000			$ 100,000
Convertible Note
Convertible Note aggregate principal amount				$ 330,000

Note 8 - Income Taxes_ Schedu34

Note 8 - Income Taxes: Schedule of Deferred Tax Assets (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Details
Deferred Tax Assets, Operating Loss Carryforwards	$ 2,901,083	$ 193,668
Deferred Tax Assets, Gross	1,015,379	67,780
Deferred Tax Assets, Valuation Allowance	(1,015,379)	(67,780)
Deferred Tax Assets, Net of Valuation Allowance	$ 0	$ 0

Note 8 - Income Taxes (Details)

Note 8 - Income Taxes (Details)	9 Months Ended
	Sep. 30, 2017USD ($)
Details
Operating Loss Carryforwards	$ 2,901,083
Valuation Allowances and Reserves, Period Increase (Decrease)	$ 947,599

Note 9 - Share Exchange Agree36

Note 9 - Share Exchange Agreement (Details)	Jan. 06, 2017
Details
Business Acquisition, Name of Acquired Entity	InterLok Key Management, Inc.
Business Acquisition, Pro Forma Information, Description	The Share Exchange was treated as a reverse merger with InterLok Key Management, Inc. deemed, for accounting recognition purposes, the accounting acquirer and Butte Highlands Mining Company deemed the accounting acquiree under the acquisition method of accounting. The reverse merger is deemed a recapitalization and the unaudited pro forma consolidated financial statements of operations represent the substantive continuation of the operations and thus the financial statements of InterLok Key Management, Inc., while the capital structure (with respect to authorized, issued and outstanding shares of preferred and common stock) of Butte Highlands Mining Company--now using the name IronClad--remains intact.

Note 10 - Stock Options and W37

Note 10 - Stock Options and Warrants (Details) - USD ($)	3 Months Ended			9 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Sep. 30, 2017
Details
Stock options for services, and contractual obligations associated with the conversion of senior convertible notes, shares	372,500	2,945,000	1,045,000
Stock options for services, and contractual obligations associated with the conversion of senior convertible notes, value	261,991	4,657,850	1,305,565
Stock options to officers, shares		500,000	9,000,000
Stock options to officers, value		731,659	622,045
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number		3,445,000	10,145,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares	155,000	85,000	1,045,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares	300,000	3,360,000	9,883,470	300,000
Stock options exercised, shares			25,000
Stock options exercised, value			$ 3,750
Warrants issued for finance fees, stock	82,500
Warrants issued for finance fees, value	287,629
Limited option award, related party	10,000,000			10,000,000
Limited option award, related party, exercise price	1			1
Description of conditions of limited option award				The option is only exercisable under certain limited circumstances, one of which is that the market price of the Class A common stock reaches a price of $15.00 per share. Once vested, these additional options must be exercised within two years of vesting.
Options and warrants outstanding, including limited option award	24,045,000			24,045,000

Note 10 - Stock Options and W38

Note 10 - Stock Options and Warrants: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - $ / shares	Aug. 31, 2017	Aug. 25, 2017	Aug. 24, 2017	Jul. 31, 2017	Jun. 30, 2017	Jun. 12, 2017	May 31, 2017	May 05, 2017	Apr. 30, 2017	Mar. 21, 2017	Mar. 15, 2017	Mar. 13, 2017	Feb. 01, 2017	Jan. 31, 2017	Jan. 20, 2017	Jan. 16, 2017
Details
Stock options issued							80,000	1,700,000	5,000	20,000		100,000	100,000	350,000	6,000,000	75,000
Fair Value Assumptions, Exercise Price	$ 3.75	$ 2.50	$ 3	$ 3.50	$ 3.49	$ 2.50	$ 0.75	$ 1.47	$ 0.75	$ 0.15	$ 0.15	$ 0.15	$ 0.15	$ 0.15	$ 0.15	$ 0.75
Fair Value Assumptions, Risk Free Interest Rate	1.44%	1.62%	1.63%	1.51%	1.55%	1.64%	1.44%	1.71%	1.45%	1.54%	1.02%	1.40%	1.22%	1.19%	1.54%	1.54%
Fair Value Assumptions, Expected Volatility Rate	170.57%	170.38%	285.16%	170.61%	197.13%	589.85%	196.06%	565.34%	219.35%	233.07%	114.94%	144.84%	134.90%	132.84%	220.00%	226.01%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	3 years	3 years	4 years	3 years	3 years	4 years	3 years	4 years	3 years	3 years	1 year 4 months 24 days	2 years	2 years	1 year 11 months 5 days	3 years	3 years
Stock options issued, additional								1,000,000							3,000,000
Number of options issued				3.16				1.47							0.15
Number of options issued				1.63				1.32							1.54
Measure of dispersion, in percentage terms (for instance, the standard deviation or variance), for a given stock price, additional items				296.38%				202.99%							220.00%
Number of options issued				4				2							4

Note 10 - Stock Options and W39

Note 10 - Stock Options and Warrants: Schedule of Stockholders' Equity Note, Warrants or Rights (Details) - $ / shares	Aug. 31, 2017	Aug. 25, 2017	Aug. 24, 2017	Jul. 31, 2017	Jun. 30, 2017	Jun. 12, 2017	May 31, 2017	May 05, 2017	Apr. 30, 2017	Mar. 21, 2017	Mar. 15, 2017	Mar. 13, 2017	Feb. 01, 2017	Jan. 31, 2017	Jan. 20, 2017	Jan. 16, 2017	Sep. 30, 2017
Details
Warrants issued			82,500								500,000
Fair Value Assumptions, Exercise Price	$ 3.75	$ 2.50	$ 3	$ 3.50	$ 3.49	$ 2.50	$ 0.75	$ 1.47	$ 0.75	$ 0.15	$ 0.15	$ 0.15	$ 0.15	$ 0.15	$ 0.15	$ 0.75
Fair Value Assumptions, Risk Free Interest Rate	1.44%	1.62%	1.63%	1.51%	1.55%	1.64%	1.44%	1.71%	1.45%	1.54%	1.02%	1.40%	1.22%	1.19%	1.54%	1.54%
Fair Value Assumptions, Expected Volatility Rate	170.57%	170.38%	285.16%	170.61%	197.13%	589.85%	196.06%	565.34%	219.35%	233.07%	114.94%	144.84%	134.90%	132.84%	220.00%	226.01%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	3 years	3 years	4 years	3 years	3 years	4 years	3 years	4 years	3 years	3 years	1 year 4 months 24 days	2 years	2 years	1 year 11 months 5 days	3 years	3 years
Class of Warrant or Right, Outstanding																	582,500
Options and warrants outstanding																	14,045,000

Note 11 - Subsequent Events (De

Note 11 - Subsequent Events (Details)	Oct. 23, 2017
Second borrowing
Subsequent Event, Description	On October 23, 2017, the Company borrowed an additional $82,500 under the Convertible Note, the second borrowing made under the Convertible Note bringing the total cumulative borrowings to $247,500 and leaving $82,500 available for future borrowings under the Convertible Note.