Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2020shares | |
Details | |
Registrant CIK | 0001492091 |
Fiscal Year End | --12-31 |
Registrant Name | AUSCRETE CORPORATION |
SEC Form | 10-Q |
Period End date | Jun. 30, 2020 |
Tax Identification Number (TIN) | 27-1692457 |
Number of common stock shares outstanding | 100,542,966 |
Filer Category | Non-accelerated Filer |
Current with reporting | Yes |
Interactive Data Current | Yes |
Shell Company | false |
Small Business | true |
Emerging Growth Company | true |
Ex Transition Period | false |
Amendment Description | n |
Entity File Number | 001-35923 |
Entity Incorporation, State or Country Code | WY |
Entity Address, Address Line One | 49 John Day Dam Rd |
Entity Address, City or Town | Goldendale |
Entity Address, State or Province | WA |
Entity Address, Postal Zip Code | 98620 |
City Area Code | 509 |
Local Phone Number | 2612 |
Amendment Flag | true |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q2 |
Document Quarterly Report | true |
Document Transition Report | false |
Statement of Financial Position
Statement of Financial Position - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Details | ||
Cash | $ 8,025 | $ 15,634 |
Prepaid Expenses | 7,744 | 6,265 |
Inventory | 2,100 | 2,100 |
TOTAL CURRENT ASSETS | 17,869 | 23,999 |
Property, Plant and Equipment (net) | 60,137 | 59,061 |
Deposits | 0 | 0 |
TOTAL ASSETS | 78,006 | 83,060 |
CURRENT LIABILITIES: | ||
Accounts Payable | 62,246 | 50,838 |
Accrued Interest Payable | 116,915 | 96,507 |
Notes Payable (net of discount) | 488,095 | 370,786 |
Derivative Liability | 345,492 | 729,308 |
Related Party Advances | 6,490 | 6,766 |
TOTAL CURRENT LIABILITIES | 1,019,238 | 1,254,205 |
TOTAL LIABILITIES | 1,019,238 | 1,254,205 |
STOCKHOLDERS' EQUITY (DEFICIT) | ||
92,620,953 and 15,597,928 shares issued and outstanding as of June 30, 2020 and December 31, 2019 respectively, | 9,262 | 1,560 |
Additional Paid In Capital | 8,660,462 | 7,263,903 |
Accumulated deficit | (9,610,956) | (8,436,608) |
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) | (941,232) | (1,171,145) |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ 78,006 | $ 83,060 |
Income Statement
Income Statement - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||||
REVENUE | $ 0 | $ 0 | $ 0 | $ 0 |
EXPENSES | ||||
Accounting and Legal | 10,250 | 11,300 | 16,750 | 19,700 |
Salaries and wages | 47,806 | 0 | 97,161 | 29,788 |
Share based expense | 0 | 0 | 1,150,000 | 0 |
G&A Expenses | 34,485 | 29,888 | 64,636 | 57,882 |
Depreciation expense | 1,307 | 1,307 | 2,614 | 2,614 |
TOTAL EXPENSES | 93,848 | 42,495 | 1,331,161 | 109,984 |
OTHER INCOME (EXPENSES) | ||||
Gain / (Loss) on Derivative | (64,072) | 42,751 | 379,917 | 151,150 |
Financing cost | (75,206) | (37,949) | (111,517) | (144,674) |
Interest Expense | (58,878) | (58,215) | (111,587) | (110,658) |
LOSS BEFORE TAXES | (292,004) | (95,908) | (1,174,348) | (214,166) |
Provision for Income Taxes | 0 | 0 | 0 | 0 |
NET LOSS | $ (292,004) | $ (95,908) | $ (1,174,348) | $ (214,166) |
NET LOSS PER COMMON SHARE - BASIC & DILUTED | $ 0 | $ 0 | $ (0.02) | $ 0 |
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC & DILUTED | 83,122,439 | 69,263,825 | 71,815,632 | 66,177,047 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity - 6 months ended Jun. 30, 2020 - USD ($) | Common Stock | Additional Paid-in Capital | Retained Earnings | Total |
BALANCE, March 31, 2020 at Dec. 31, 2019 | $ 7,803 | $ 8,560,406 | $ (9,318,952) | $ (750,743) |
BALANCE, March 31, 2020 at Dec. 31, 2019 | 78,031,330 | |||
Note conversion | $ 1,459 | 80,806 | 82,265 | |
Note conversion | 14,589,623 | |||
Net Income (Loss) | (292,004) | (292,004) | ||
BALANCE, June 30, 2020 at Jun. 30, 2020 | $ 9,262 | $ 8,641,212 | $ (9,610,956) | $ (941,232) |
BALANCE, June 30, 2020 at Jun. 30, 2020 | 92,620,953 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Details | ||
NET LOSS | $ (1,174,348) | $ (214,166) |
Finance Costs | 111,517 | 144,674 |
Depreciation | 2,614 | 2,614 |
Change in other assets | (1,479) | 3,797 |
Share Based expense | 1,150,000 | 0 |
Change in Accounts Payable and Accrued Expenses | 31,816 | 48,020 |
Change in Related Party Advances | (276) | 2,254 |
Change in Derivative and Note Discount | (290,763) | (82,257) |
Net Cash Used by Operating Activities | (170,919) | (95,064) |
INVESTING ACTIVITIES: | ||
Purchase of Equipment | (3,690) | 775 |
Net cash (used) by investing activities | (3,690) | 775 |
FINANCING ACTIVITIES: | ||
Proceeds from notes payable | 167,000 | 78,500 |
Net cash provided by financing activities | 167,000 | 78,500 |
NET INCREASE (DECREASE) IN CASH | (7,609) | (15,789) |
Cash and Cash Equivalents, at Carrying Value, Beginning Balance | 15,634 | 15,948 |
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 8,025 | 159 |
Supplemental Cashflow Information | ||
Interest Paid | 0 | 0 |
Taxes Paid | 0 | 0 |
Supplemental Non-Cash Disclosure | ||
Shares issued for note conversions | $ 254,262 | $ 192,343 |
Organization, Consolidation and
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES HISTORY Auscrete Corporation ("the Company") was formed as an enterprise to take advantage of technologies developed for the construction of affordable, thermally efficient and structurally superior housing. This "GREEN" product is the culmination of design and development since the early 1980's. The company's Registration Statement outlines the result of the amalgamation of various material development stages, taking an idea to a product and further developing that product to address an ongoing problem in the world's largest marketplace, the quest for affordable, efficient and enduring housing. Auscrete's structures are monetarily highly competitive. A turnkey house, ready to move in sells for around $100-110 per square foot. That is very low in today's market but is brought about by Auscrete's ability to manufacture large panels in mass production format. The house is virtually "fastened" together on site to produce an attractive site-built home, a home that will stay where it is put through all kinds of adverse weather and age conditions. It will not burn, is not affected by bugs, termites or rot, it saves extensively on energy costs and has very low maintenance needs. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The summary of significant accounting policies of Auscrete Corporation is presented to assist in the understanding of the Company's financial statements. The financial statements and notes are representations of the Companys management, who is responsible for their integrity and objectivity. The financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP). The financial statements are presented in condensed format and should be read in conjunction with the audited financial statement on the form 10K for the year ended December 31, 2019. INCOME TAXES Federal Income taxes are not currently due since we have had losses since inception. On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act, (the Tax Act) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (Federal Tax Rate) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the six Months ended June 30, 2020 using a Federal Tax Rate of 21%. 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. The Company has no uncertain tax positions or related interest or penalties requiring Accrual at June 30, 2020 and 2019. CASH AND CASH EQUIVALENTS Cash and cash equivalents consist primarily of cash in banks and highly liquid investments with original maturities of 90 days or less. There were $8,025 in cash equivalents as of June 30, 2020 and $15,634 as of December 31, 2019. Fair Value Measurements The Company adopted guidance which defines fair value, establishes a framework for using fair value to measure financial assets and liabilities on a recurring basis, and expands disclosures about fair value measurements. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent sources. Unobservable inputs are inputs that reflect the Companys assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1 - Valuation is based upon unadjusted quoted market prices for identical assets or liabilities in accessible active markets. Level 2 - Valuation is based upon quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable in the market. Level 3 - Valuation is based on models where significant inputs are not observable. The unobservable inputs reflect a companys own assumptions about the inputs that market participants would use. The Companys financial instruments consist of cash, prepaid expenses, inventory, accounts payable, convertible notes payable, advances from related parties, and derivative liabilities. The estimated fair value of cash, prepaid expenses, investments, accounts payable, convertible notes payable and advances from related parties approximate their carrying amounts due to the short-term nature of these instruments. The Companys derivative liabilities have been valued as Level 3 instruments. Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability December 31, 2019 $ $ $ 729,308 $ 729,308 Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability June 30, 2020 $ $ $ 345,492 $ 345,492 The following table provides a summary of changes in fair value of the Companys Level 3 financial liabilities as of June 30, 2020 Derivative Liability Balance, December 31, 2019 729,308 Additions recognized as debt discount 121,179 Note Conversions (153,636) Mark-to-market at June 30, 2020 (351,359) Balance, June 30, 2020 345,492 REVENUE RECOGNITION POLICY The Company recognizes revenue under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), · · · · · COST OF SALES Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our products. Such costs are recorded as incurred. Our cost of sales will consist primarily of the cost of product; labor, selling costs and the cost of G&A expenses. PROPERTY AND EQUIPMENT Property and Equipment was stated at historical cost less Accumulated depreciation and amortization. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Depreciation is provided on a straight-line basis over the assets' estimated useful lives. The useful lives of the assets are as follows: equipment 7-years, vehicles 7-years, and buildings 30-years. Additions and improvements are capitalized while routine repairs and maintenance are charged to expense as incurred. Upon sale or disposition, the historically recorded asset cost and Accumulated depreciation are removed from the Accounts and the net amount less proceeds from disposal is charged or credited to other income or expense. IMPAIRMENT OF LONG-LIVED ASSETS We evaluate long-lived assets for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate their net book value may not be recoverable. When these events occur, we compare the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. There can be no assurance, however, that market conditions will not change or demand for the Company's products will continue. Either of these could result in the future impairment of long-lived assets. Estimates of fair value are determined through various techniques, including discounted cash flow models and market approaches, as considered necessary. LOSS PER COMMON SHARE Basic loss per common share is computed based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share consists of the weighted average number of common shares outstanding plus the dilutive effects of options and warrants calculated using the treasury stock method. In loss periods, dilutive common equivalent shares are excluded as the effect would be anti-dilutive. It is estimated that approximately 400,000,000 shares of common stock could be issued as a result of conversion of notes payable. As of June 30, 2020, and 2019. Fully diluted weighted average common shares and equivalents were withheld from the calculation as they were considered anti-dilutive. All calculations reflect the effects of the 200 to 1 reverse stock split completed November 13th, 2019. RECLASSIFICATION Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported income, total assets, or stockholders equity as previously reported. USE OF ESTIMATES The preparation of the 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, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. EMERGING GROWTH COMPANY The Company qualifies as an Emerging Growth Company, thus takes advantage of the 1-year deferral period for the adoption of all new accounting standards updates. LEASES ASB ASU 2016-02 Leases (Topic 842) NOTE 2 - GOING CONCERN AND PLAN OF OPERATION The Company's financial statements have been presented on the basis that it will continue as a going concern. The Company has not generated revenues from construction related operations to date. The Company has an Accumulated deficit of $9,610,956 as of June 30, 2020 which raises substantial doubt about the Companys ability to continue as a going concern. The Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements. No assurance can be given that additional financing will be available when needed or that such financing will be available on terms acceptable to the Company. This also may be affected given the uncertainties surrounding the Covid 19 pandemic. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty. Recent Accounting Pronouncements In December 2018, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities - FASB ASU 2016-01 Summary - The amendments in ASU 2016-01, among other things. The Company has no expectation that any of these items will have a material effect upon the financial statements. Update 2018-07CompensationStock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. T |
Related Party Transactions Disc
Related Party Transactions Disclosure | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Related Party Transactions Disclosure | NOTE 4 -RELATED PARTY TRANSACTIONS As of, June 30, 2020 and December 31, 2019, the balance owed to Company CEO, John Sprovieri was $6,490 and $6,766 respectively. These advances were primarily for operating expenses. |
Property, Plant and Equipment D
Property, Plant and Equipment Disclosure | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Property, Plant and Equipment Disclosure | Property and Equipment at June 30, 2020 were comprised of the following at: June 30, 2020 December 31, 2019 Property Plant and Equipment (Gross) $ 79,045 $ 75,355 Vehicles 6,344 6,344 Accumulated Depreciation (25,252) (22,638) Property, Plant and Equipment (net) $ 60,137 $ 59,061 During the six months ended June 30, 2020, the Company purchased $3,690 in manufacturing equipment so there was an increase to $79,045 in Gross equipment. The Depreciation expense was for the three and six months ended June 30, 2020 and 2019 was$1,307 and $2,614 respectively. |
Stockholders' Equity Note Discl
Stockholders' Equity Note Disclosure | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Stockholders' Equity Note Disclosure | NOTE 6 - COMMON STOCK Common Stock: The Company Authorized Capital to 20,000,000,000 common shares at $0.0001 par value. During November 2019 the company performed a reverse split in the ratio of 1 for 200. There were 15,597,927 shares issued and outstanding as of December 31, 2019. During the Period January 1, 2019 to December 31, 2019, the Company issued 5,250,000 shares for services based on post-split numbers. During the Period January 1, 2019 to December 31, 2019, the Company issued 10,061,438 shares for convertible note conversions based on post-split numbers. During the Period January 1, 2020 to June 30, 2020, the Company issued 27,023,025 shares for convertible note conversions based on post-split numbers. On one of the conversions the conversion price was modified during the period to induce the share settlement, resulting in loss on the conversion of $19,250. During the Period January 1, 2020 to June 30, 2020 there were 50,000,000 shares issued to these individuals to recompense post-split roll back numbers issued for service compensation to the Company. Shareholder Issued Cost Basis Michael A. Young 1,000,000 17,000 Otto B. Paulette 1,000,000 17,000 William S. Beers 1,000,000 17,000 Julie Jett-Regnell 1,000,000 17,000 Elbert L. Odom 1,000,000 17,000 Kimberly A. Grimm 3,000,000 51,000 Kathleen D. Jett 5,000,000 85,000 John & Mary Sprovieri 37,000,000 629,000 |
Income Tax Disclosure
Income Tax Disclosure | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Income Tax Disclosure | NOTE 7 - INCOME TAXES Federal Income taxes are not currently due since we have had losses since inception. On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act, (the Tax Act) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (Federal Tax Rate) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the nine months ended September 30, 2018 using a Federal Tax Rate of 21%. 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. As of June 30, 2020, we had a net operating loss carry-forward of approximately $(9,610,956) and a deferred tax asset of approximately $2,018,301 using the statutory rate of 21%. The deferred tax asset may be recognized in future periods, not to exceed 20 years. However, due to the uncertainty of future events we have booked valuation allowance of $(2,018,301). FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. At June 30, 2020, the Company had not taken any tax positions that would require disclosure under FASB ASC 740. June 30, 2020 December 31, 2019 Deferred Tax Asset $2,018,301 $ 1,771,688 Valuation Allowance (2,018,301) (1,771,688) Deferred Tax Asset (Net) $ - $ - The Company is subject to tax in the U.S. federal and Washington jurisdictions. These filings are subject to a three-year statute of limitations unless the returns have not been filed at which point the statute of limitations becomes indefinite. No filings are currently under examination. No adjustments have been made to reduce the estimated income tax benefit at year end. Any valuations relating to these income tax provisions will comply with U.S. generally Accepted Accounting principles. |
Debt Disclosure
Debt Disclosure | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Debt Disclosure | Note 8 Notes Payable and Derivative Liabilities On May 8, 2018, the company issued a 12-month Convertible Note for the sum of $50,000 to RB Capital at 12%. Convertible at $.004. No beneficial conversion was recognized as the conversion price was higher than the stock price. On June 28, 2018, the company issued a 12-month Convertible Note for the sum of $10,000 to RB Capital at 12%. Convertible at $.004. No beneficial conversion was recognized as the conversion price was higher than the stock price. On December 7, 2018, the company issued a 12-month Convertible Note for the sum of $25,000 to RB Capital at 12%. Convertible at $.004. No beneficial conversion was recognized as the conversion price was higher than the stock price. On October 25, 2019, the company issued a 12-month Convertible Note for the sum of $15,000 to RB Capital at 12%. Convertible at $.01. As a result we recognized a beneficial conversion cost of $45,000. On November 15, 2019, the company issued a 12-month Convertible Note for the sum of $25,000 to RB Capital at 12%. Convertible at $.01. As a result, we recognized a beneficial conversion cost of $7,500. On December 13, 2019, the company issued a 12-month Convertible Note for the sum of $20,000 to RB Capital at 12%. Convertible at $.03. No beneficial conversion was recognized as the conversion price was higher than the stock price. On May 28, 2019 we entered into a one-year convertible promissory note in the amount of $27,500 with and interest rate of 12% and a conversion rate of 55% of the lowest prior 25 days trading period. On August 20, 2019, the company issued a 12-month Convertible Note for the sum of $40,000 to LG Capital at 8%. Convertible at 60% of lowest of the prior 20 days trading period. On December 16, 2019, the company issued a 12-month Convertible Note for the sum of $32,000 to LG Capital at 8%. Convertible at 60% of lowest of the prior 20 days trading period. On January 13, 2020, the company issued a 12-month Convertible Note for the sum of $20,000 to RB Capital at 12%. Convertible at $.1. No beneficial conversion was recognized as the conversion price was higher than the stock price. On February 10, 2020, the company issued a 12-month Convertible Note for the sum of $25,000 to RB Capital at 12%. Convertible at $.15. No beneficial conversion was recognized as the conversion price was higher than the stock price. On March 6, 2020, the company issued a 12-month Convertible Note for the sum of $35,000 to LG Capital at 8%. Convertible at 60% of lowest of the prior 20 days trading period. We recognized a derivative liability of $66,811, an original debt discount of $35,000 and a loss on issuance of $31,811 On April 7, 2020, the company issued a 12-month Convertible Note for the sum of $15,000 to RB Capital at 12%. Convertible at $.05. No beneficial conversion was recognized as the conversion price was higher than the stock price. On June 5, 2020, the company issued a 12-month Convertible Note for the sum of $20,000 to RB Capital at 12%. Convertible at $.1. No beneficial conversion was recognized as the conversion price was higher than the stock price. On June 25, 2020, the company issued a 12-month Convertible Note for the sum of $30,000 to Samuel Rotbard at 8%. Convertible at 60% of lowest of the prior 20 days trading period. We recognized a derivative liability of $66,811, an original debt discount of $35,000 and a loss on issuance of $31,811 As a result of the convertible notes we recognized the embedded derivative liability on the date that the note was convertible. We also revalued the remaining derivative liability on the outstanding note balance on the date of the balance sheet. The inputs used were a weighted volatility of 204% to 262% and a risk free discount rate of .15% to .42 The remaining derivative liabilities valued using the level 3 inputs in the fair value hierarchy were: The convertible notes have interest rates that range from 8% to 12% per annum and default rates that range from 12% to 24% per annum. The maturity dates range from six months to one year. The conversion rates range from 55% discount to the market to 62% discount to the market. For the six months ended June 30, 2020 the convertible notes had converted into 27,023,025 shares of common stock and we recognized $500 in finance fees on the conversions. Outstanding Derivative Liabilities: June 30, 2020 December 31, 2019 Derivative Liabilities on Convertible Loans: Outstanding Balance $ 345,492 $ 729,308 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2020 | |
Notes | |
Subsequent Events | NOTE 10 SUBSEQUENT EVENTS On July 23rd, 2020, the company issued a 12-month Convertible Note for the sum of $15,000 to RB Capital at 10% interest. The note is Convertible at $0.05. Auscrete entered into a sales agreement on July 30 with Real Estate Developer, Michael Nillson for supply of housing and structures throughout the Columbia Gorge Region of Washington and Oregon States. The renewable agreement is open ended and gives Mr. Nillson access to an array of housing structures to be constructed over each one year period. The first home is a 360 sq. ft. small display home in Lyle, WA and materials production commenced on August 10 th From July 1, 2020 thru August 11, 2020 we had two note conversions for a total of $15,686 into 7,922,013 shares of our common stock. In accordance with ASC 855, the Company has analyzed its operations subsequent to June 30, 2020 through the date these financial statements were issued, and has determined that it does not have any other material subsequent events to disclose in these financial statements. |
Organization, Consolidation a_2
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Basis of Accounting, Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Basis of Accounting, Policy | Auscrete Corporation ("the Company") was formed as an enterprise to take advantage of technologies developed for the construction of affordable, thermally efficient and structurally superior housing. This "GREEN" product is the culmination of design and development since the early 1980's. The company's Registration Statement outlines the result of the amalgamation of various material development stages, taking an idea to a product and further developing that product to address an ongoing problem in the world's largest marketplace, the quest for affordable, efficient and enduring housing. Auscrete's structures are monetarily highly competitive. A turnkey house, ready to move in sells for around $100-110 per square foot. That is very low in today's market but is brought about by Auscrete's ability to manufacture large panels in mass production format. The house is virtually "fastened" together on site to produce an attractive site-built home, a home that will stay where it is put through all kinds of adverse weather and age conditions. It will not burn, is not affected by bugs, termites or rot, it saves extensively on energy costs and has very low maintenance needs. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The summary of significant accounting policies of Auscrete Corporation is presented to assist in the understanding of the Company's financial statements. The financial statements and notes are representations of the Companys management, who is responsible for their integrity and objectivity. The financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (US GAAP). The financial statements are presented in condensed format and should be read in conjunction with the audited financial statement on the form 10K for the year ended December 31, 2019. |
Organization, Consolidation a_3
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Income Tax, Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Income Tax, Policy | INCOME TAXES Federal Income taxes are not currently due since we have had losses since inception. On December 22, 2017 H.R. 1, originally known as the Tax Cuts and Jobs Act, (the Tax Act) was enacted. Among the significant changes to the U.S. Internal Revenue Code, the Tax Act lowers the U.S. federal corporate income tax rate (Federal Tax Rate) from 35% to 21% effective January 1, 2018. The Company will compute its income tax expense for the six Months ended June 30, 2020 using a Federal Tax Rate of 21%. 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. The Company has no uncertain tax positions or related interest or penalties requiring Accrual at June 30, 2020 and 2019. |
Organization, Consolidation a_4
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Cash and Cash Equivalents, Policy | CASH AND CASH EQUIVALENTS Cash and cash equivalents consist primarily of cash in banks and highly liquid investments with original maturities of 90 days or less. There were $8,025 in cash equivalents as of June 30, 2020 and $15,634 as of December 31, 2019. |
Organization, Consolidation a_5
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Fair Value Measurement, Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Fair Value Measurement, Policy | Fair Value Measurements The Company adopted guidance which defines fair value, establishes a framework for using fair value to measure financial assets and liabilities on a recurring basis, and expands disclosures about fair value measurements. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent sources. Unobservable inputs are inputs that reflect the Companys assumptions of what market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of the inputs as follows: Level 1 - Valuation is based upon unadjusted quoted market prices for identical assets or liabilities in accessible active markets. Level 2 - Valuation is based upon quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in inactive markets; or valuations based on models where the significant inputs are observable in the market. Level 3 - Valuation is based on models where significant inputs are not observable. The unobservable inputs reflect a companys own assumptions about the inputs that market participants would use. The Companys financial instruments consist of cash, prepaid expenses, inventory, accounts payable, convertible notes payable, advances from related parties, and derivative liabilities. The estimated fair value of cash, prepaid expenses, investments, accounts payable, convertible notes payable and advances from related parties approximate their carrying amounts due to the short-term nature of these instruments. The Companys derivative liabilities have been valued as Level 3 instruments. Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability December 31, 2019 $ $ $ 729,308 $ 729,308 Level 1 Level 2 Level 3 Total Fair value of convertible notes derivative liability June 30, 2020 $ $ $ 345,492 $ 345,492 The following table provides a summary of changes in fair value of the Companys Level 3 financial liabilities as of June 30, 2020 Derivative Liability Balance, December 31, 2019 729,308 Additions recognized as debt discount 121,179 Note Conversions (153,636) Mark-to-market at June 30, 2020 (351,359) Balance, June 30, 2020 345,492 |
Organization, Consolidation a_6
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Revenue from Contract with Customer (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Revenue from Contract with Customer | REVENUE RECOGNITION POLICY The Company recognizes revenue under ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), · · · · · COST OF SALES Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our products. Such costs are recorded as incurred. Our cost of sales will consist primarily of the cost of product; labor, selling costs and the cost of G&A expenses. |
Organization, Consolidation a_7
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Property, Plant and Equipment, Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Property, Plant and Equipment, Policy | PROPERTY AND EQUIPMENT Property and Equipment was stated at historical cost less Accumulated depreciation and amortization. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Depreciation is provided on a straight-line basis over the assets' estimated useful lives. The useful lives of the assets are as follows: equipment 7-years, vehicles 7-years, and buildings 30-years. Additions and improvements are capitalized while routine repairs and maintenance are charged to expense as incurred. Upon sale or disposition, the historically recorded asset cost and Accumulated depreciation are removed from the Accounts and the net amount less proceeds from disposal is charged or credited to other income or expense. |
Organization, Consolidation a_8
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Impairment or Disposal of Long-Lived Assets, Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Impairment or Disposal of Long-Lived Assets, Policy | IMPAIRMENT OF LONG-LIVED ASSETS We evaluate long-lived assets for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate their net book value may not be recoverable. When these events occur, we compare the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. There can be no assurance, however, that market conditions will not change or demand for the Company's products will continue. Either of these could result in the future impairment of long-lived assets. Estimates of fair value are determined through various techniques, including discounted cash flow models and market approaches, as considered necessary. |
Organization, Consolidation a_9
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Earnings Per Share, Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Earnings Per Share, Policy | LOSS PER COMMON SHARE Basic loss per common share is computed based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share consists of the weighted average number of common shares outstanding plus the dilutive effects of options and warrants calculated using the treasury stock method. In loss periods, dilutive common equivalent shares are excluded as the effect would be anti-dilutive. It is estimated that approximately 400,000,000 shares of common stock could be issued as a result of conversion of notes payable. As of June 30, 2020, and 2019. Fully diluted weighted average common shares and equivalents were withheld from the calculation as they were considered anti-dilutive. All calculations reflect the effects of the 200 to 1 reverse stock split completed November 13th, 2019. |
Organization, Consolidation _10
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Reclassification, Comparability Adjustment (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Reclassification, Comparability Adjustment | RECLASSIFICATION Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported income, total assets, or stockholders equity as previously reported. |
Organization, Consolidation _11
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Use of Estimates, Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Use of Estimates, Policy | USE OF ESTIMATES The preparation of the 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, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions. |
Organization, Consolidation _12
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: Substantial Doubt about Going Concern (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
Substantial Doubt about Going Concern | NOTE 2 - GOING CONCERN AND PLAN OF OPERATION The Company's financial statements have been presented on the basis that it will continue as a going concern. The Company has not generated revenues from construction related operations to date. The Company has an Accumulated deficit of $9,610,956 as of June 30, 2020 which raises substantial doubt about the Companys ability to continue as a going concern. The Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements. No assurance can be given that additional financing will be available when needed or that such financing will be available on terms acceptable to the Company. This also may be affected given the uncertainties surrounding the Covid 19 pandemic. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty. |
Organization, Consolidation _13
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies: New Accounting Pronouncements, Policy (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Policies | |
New Accounting Pronouncements, Policy | Recent Accounting Pronouncements In December 2018, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities - FASB ASU 2016-01 Summary - The amendments in ASU 2016-01, among other things. The Company has no expectation that any of these items will have a material effect upon the financial statements. Update 2018-07CompensationStock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. T |
Property, Plant and Equipment_2
Property, Plant and Equipment Disclosure: Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Property, Plant and Equipment | June 30, 2020 December 31, 2019 Property Plant and Equipment (Gross) $ 79,045 $ 75,355 Vehicles 6,344 6,344 Accumulated Depreciation (25,252) (22,638) Property, Plant and Equipment (net) $ 60,137 $ 59,061 |
Income Tax Disclosure_ Schedule
Income Tax Disclosure: Schedule of Deferred Tax Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | June 30, 2020 December 31, 2019 Deferred Tax Asset $2,018,301 $ 1,771,688 Valuation Allowance (2,018,301) (1,771,688) Deferred Tax Asset (Net) $ - $ - |
Debt Disclosure_ Derivative Lia
Debt Disclosure: Derivative Liability (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Tables/Schedules | |
Derivative Liability | Outstanding Derivative Liabilities: June 30, 2020 December 31, 2019 Derivative Liabilities on Convertible Loans: Outstanding Balance $ 345,492 $ 729,308 |
Property, Plant and Equipment_3
Property, Plant and Equipment Disclosure: Property, Plant and Equipment (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Details | ||
Property Plant and Equipment (Gross) | $ 79,045 | $ 75,355 |
Vehicles | 6,344 | 6,344 |
Accumulated Depreciation | (25,252) | (22,638) |
Property, Plant and Equipment (net) | $ 60,137 | $ 59,061 |
Income Tax Disclosure_ Schedu_2
Income Tax Disclosure: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Details | ||
Deferred Tax Asset | $ 2,018,301 | $ 1,771,688 |
Valuation Allowance | (2,018,301) | (1,771,688) |
Deferred Tax Asset (Net) | $ 0 | $ 0 |
Debt Disclosure_ Derivative L_2
Debt Disclosure: Derivative Liability (Details) - USD ($) | Jun. 30, 2020 | Dec. 31, 2019 |
Details | ||
Outstanding Balance | $ 345,492 | $ 729,308 |