| Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Use of estimates The preparation of financial statements in
conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements
and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results could differ from those
estimates. Such estimates include managements assessments of the carrying value of certain assets, useful lives of assets,
and related depreciation and amortization methods applied. Concentration of Credit Risk Financial instruments that potentially subject
the Company to concentrations of credit risk consist principally of cash and accounts receivable. During the year ended December
31, 2016, the Company may have had cash deposits that exceeded Federal Deposit Insurance Corporation (FDIC) insurance
limits. The Company maintains its cash balances at high quality financial institutions to mitigate this risk. The Company performs
ongoing credit evaluations of its customers and generally does not require collateral. Cash equivalents The Company considers all highly liquid investments
with an original maturity of three months or less when purchased to be cash equivalents. At December 31, 2016, the Company
had no cash equivalents. Fair value of financial instruments The Company adopted the provisions of FASB
ASC 820 (the Fair Value Topic) which defines fair value, establishes a framework for measuring fair value under GAAP,
and expands disclosures about fair value measurements. The Fair Value Topic defines fair value as
the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most
advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
It requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. It also
establishes a fair value hierarchy, which prioritizes the valuation inputs into six broad levels. The following fair value hierarchy is used
to classify assets and liabilities based on the observable inputs and unobservable inputs used in order to value the assets and
liabilities: A) Market approachUses prices and other
relevant information generated by market transactions involving identical or comparable assets or liabilities. Prices may be indicated
by pricing guides, sale transactions, market trades, or other sources; B) Cost approachBased on the amount
that currently would be required to replace the service capacity of an asset (replacement cost); and C) Income approachUses valuation techniques
to convert future amounts to a single present amount based on current market expectations about the future amounts (includes present
value techniques, and option-pricing models). Net present value is an income approach where a stream of expected cash flows is
discounted at an appropriate market interest rate. Level 1: Quoted market prices available
in active markets for identical assets or liabilities as of the reporting date. An active market for an asset or liability is a
market in which transactions for the asset or liability occur with significant frequency and volume to provide pricing information
on an ongoing basis. Level 2: Observable inputs other than
Level 1 inputs. Example of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted
prices for identical assets or liabilities in markets that are not active. Level 3: Unobservable inputs based
on the Companys assessment of the assumptions that are market participants would use in pricing the asset or liability. The carrying amount of the Companys
financial assets and liabilities, such as cash, accounts receivable, accounts payable, accrued expenses, and notes payable approximate
their fair value because of the short maturity of those instruments. The Company had no assets and/or liabilities
measured at fair value on a recurring basis at December 31, 2016 and 2015. Accounts Receivable and Allowance for
Doubtful Accounts Accounts receivable related to the products
and services sold are recorded at the time revenue is recognized, and are presented on the balance sheet net of allowance for doubtful
accounts. The ultimate collection of the receivable may not be known for several months after services have been provided and billed. The Company has established an allowance for
doubtful accounts based upon factors pertaining to the credit risk of specific customers, analyses of current and historical cash
collections, and the aging of receivables. Delinquent accounts are written-off when the likelihood for collection is remote and/or
when the Company believes collection efforts have been fully exhausted and the Company does not intend to devote any additional
efforts in an attempt to collect the receivable. The Company adjusts their allowance for doubtful accounts balance on a quarterly
basis. Property and Equipment Property and equipment are recorded at cost.
Expenditures for major additions and betterments are capitalized. Maintenance and repairs are charged to operations as incurred.
Depreciation is computed by the straight-line method over the assets estimated useful life of three (3) years for equipment,
(5) years for automobile, and (7) years for furniture and fixtures. Upon sale or retirement of property and equipment, the related
cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in statements of operations. Impairment of long-lived assets The Company follows paragraph 360-10-05-4 of
the FASB Accounting Standards Codification for its long-lived assets. The Companys long-lived assets are required to be
reviewed for impairment annually, or whenever events or changes in circumstances indicate that the carrying amount of the asset
may not be recoverable. The Company assesses the recoverability of
its long-lived assets by comparing the projected undiscounted net cash flows associated with the related long-lived asset or group
of long-lived assets over their remaining estimated useful lives against their respective carrying amounts. Impairment, if any,
is based on the excess of the carrying amount over the fair value of those assets. Fair value is generally determined using the
assets expected future discounted cash flows or market value, if readily determinable. If long-lived assets are determined
to be recoverable, but the newly determined remaining estimated useful lives are shorter than originally estimated, the net book
values of the long-lived assets are depreciated over the newly determined remaining estimated useful lives. The Company determined
that there were no impairments of long-lived assets as of December 31, 2016. Revenue recognition The Company follows paragraph 605-10-S99-1
of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable
and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive
evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii)
the sales price is fixed or determinable, and (iv) collectability is reasonably assured. Revenue is recognized in the period the services
are provided over the contract period, normally one (1) to three (3) years. The Company invoices one-time startup costs, such as
consolidating and uploading digital assets upon completion of those services. Monthly services, such as internet access to software
as a service (SaaS), hosting and weekly backups are invoiced monthly. Income taxes The Company follows Section 740-10-30 of the
FASB Accounting Standards Codification, which requires recognition of deferred tax assets and liabilities for the expected future
tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax
assets and liabilities are based on the differences between the financial statement and tax bases of assets and liabilities using
enacted tax rates in effect for the fiscal year in which the temporary differences are expected to be recovered or settled. Deferred
tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets
will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the
period that includes the enactment date. The Company adopted section 740-10-25 of the
FASB Accounting Standards Codification (Section 740-10-25) with regards to uncertainty in income taxes. Section 740-10-25
addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the
financial statements. Under Section 740-10-25, the Company may recognize the tax benefit from an uncertain tax position only if
it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical
merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on
the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Section
740-10-25 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim
periods and requires increased disclosures. The Company had no material adjustments to its assets and/or liabilities for unrecognized
income tax benefits according to the provisions of Section 740-10-25. Stock-Based Compensation In December 2004, the FASB issued FASB Accounting
Standards Codification No. 718, Compensation Stock Compensation Equity instruments (instruments)
issued to other than employees are recorded on the basis of the fair value of the instruments, as required by FASB Accounting Standards
Codification No. 718. FASB Accounting Standards Codification No. 505, Equity Based Payments to Non-Employees Fair Value The closing price of the Company's
stock on the date of grant is used as the fair value for the issuances of restricted stock. The fair value of stock options granted
is estimated as of the grant date using the Black-Scholes option pricing model. The following range of assumptions in the Black-
Scholes option pricing model was used to determine fair value at the years ended below:
Twelve months ended December 31,
2016 2015
Weighted-average volatility 29.1 % 29.4 %
Expected term (in years) 3.7 2.5
Risk-free interest rate 1.03% - 1.28 % 0.89% - 1.31 % Expected volatilities used for award valuation
in 2016 and 2015 are based on the peer group volatility. The risk-free interest rate for periods equal
to the expected term of an award is based on a blended historical rate using Federal Reserve rates for U.S. Treasury securities. Net income (loss) per share The Company computes basic and diluted earnings
per share amounts pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic earnings per share is computed
by dividing net income (loss) available to common shareholders, by the weighted average number of shares of common stock outstanding
during the period, excluding the effects of any potentially dilutive securities. Diluted earnings per share is computed by dividing
net income (loss) available to common shareholders by the diluted weighted average number of shares of common stock during the
period. The diluted weighted average number of common shares outstanding is the basic weighted number of shares adjusted as of
the first day of the year for any potentially diluted debt or equity. For the years ended December 31, 2016 and
2015, there were 5,142,729 and 1,922,853 respectively, potentially dilutive securities not included in the calculation of weighted-average
common shares outstanding since they would be anti-dilutive. Research and Development The company expenses all our research and development
operations and activities as they occur. During the fiscal year ended December 31, 2016 we incurred total expenses of $595,115
for research and development. In comparison, during the fiscal year ended December 31, 2015 we incurred total expenses of $211,495
for research and development. Such costs related to software development are included in research and development expense until
the point that technological feasibility is reached, which for our software products, is generally shortly before the products
are released to manufacturing. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue
over the estimated lives of the products.Such costs related to software development are included in research and development expense
until the point that technological feasibility is reached, which for our software products, is generally shortly before the products
are released to manufacturing. Once technological feasibility is reached, such costs are capitalized and amortized to cost of revenue
over the estimated lives of the products Advertising Costs The Company expenses marketing and advertising
costs as incurred. Marketing and advertising expense for the years ended December 31, 2016 and 2015 was $45,316 and $21,405, respectively.
The costs are included in the consolidated selling and marketing expenses. Recently issued accounting pronouncements Company management does not believe that any
other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying
financial statements. |
