Stealth (STTH) 10-Q 22 Aug 16 2016 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 18, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Stealth Technologies, Inc.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		91,943,278
Amendment Flag	false
Entity Central Index Key	1,496,818
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2

Balance Sheets

Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
ASSETS
Cash	$ 138,411	$ 388,183
Accounts receivable	125,769	407,231
Accounts receivable – related party	199,444	5,000
Prepaid expenses	158,070	2,309
Inventory	210,799	93,584
Prepaid inventory		297,305
Total Current Assets	832,493	1,193,612
Intangible assets, net	176,522	247,654
Total Assets	1,009,015	1,441,266
Current Liabilities
Accounts payable and accrued liabilities	537,741	557,589
Accounts payable – related party	15,201	245,270
Deferred revenue	146,250
Derivative liabilities	91,784	491,249
Loans payable	120,000	139,491
Due to related parties	114,258	48,148
Liability for shares issuable – related party	845,259	831,233
Convertible debentures	308,258	488,258
Total Current Liabilities	2,178,751	2,801,238
Loan payable - related party	75,000	75,000
Total Liabilities	2,253,751	2,876,238
STOCKHOLDERS' DEFICIT
Preferred Stock Authorized: 500,000,000 preferred shares with a par value of $0.001 per share Issued and outstanding: 1,000,000 preferred shares	1,000	1,000
Common Stock Authorized: 750,000,000 common shares with a par value of $0.001 per share Issued and outstanding: 91,943,278 and 59,311,165 common shares, respectively	91,943	59,311
Additional paid-in capital	2,348,841	1,459,090
Accumulated deficit	(3,686,520)	(2,954,373)
Total Stockholders' Deficit	(1,244,736)	(1,434,972)
Total Liabilities and Stockholders' Deficit	$ 1,009,015	$ 1,441,266

Balance Sheets (Parentheticals)

Balance Sheets (Parentheticals) - $ / shares	Jun. 30, 2016	Dec. 31, 2015
Preferred Stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	500,000,000	500,000,000
Preferred Stock, shares issued	1,000,000	1,000,000
Preferred Stock, shares outstanding	1,000,000	1,000,000
Common Stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	750,000,000	750,000,000
Common Stock, shares issued	91,943,278	59,311,165
Common Stock, shares outstanding	91,943,278	59,311,165

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue of goods	$ 450,134	$ 33,304	$ 1,753,424	$ 50,990
Revenue of goods – related party		10,000		10,000
Revenue of services				23,862
Revenue of services – related party	117,450	139,600	236,944	424,600
Cost of goods sold	(307,281)	(6,161)	(799,230)	(10,894)
Cost of goods sold – related party		(2,700)		(2,700)
Cost of services – related party		(21,500)		(121,500)
Gross Margin	260,303	152,543	1,191,138	374,358
Operating Expenses
Amortization	36,690	36,689	73,379	72,975
Consulting	94,735	39,499	1,044,576	57,139
General and administrative	246,855	75,039	771,924	188,358
Payroll	69,046	66,147	256,485	133,499
Professional fees	55,244	21,394	106,537	63,541
Research and development	2,600		2,600
Total Operating Expenses	505,170	238,768	2,255,501	515,512
Loss Before Other Income (Expense)	(244,867)	(86,225)	(1,064,363)	(141,154)
Other Income (Expense)
Gain (loss) on change in fair value of derivative liabilities	48,479	(385,851)	399,465	(278,562)
Gain on forgiveness of debt				3,061
Interest expense	(25,027)	(309,870)	(53,223)	(542,440)
Make whole income (expense)	375,118	188,601	(14,026)	239,683
Total Other Income (Expense)	398,570	(507,120)	332,216	(578,258)
Net Income (Loss)	$ 153,703	$ (593,345)	$ (732,147)	$ (719,412)
Net Income (Loss) per Share – Basic and Diluted (in Dollars per share)	$ 0	$ (0.02)	$ (0.01)	$ (0.02)
Weighted Average Shares Outstanding – Basic (in Shares)	89,433,959	34,429,794	76,706,808	31,410,029
Weighted Average Shares Outstanding –Diluted (in Shares)	106,270,875	34,429,794	76,706,808	31,410,029

Statements of Cashflows (Unaudi

Statements of Cashflows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Operating Activities
Net loss for the period	$ (732,147)	$ (719,412)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of discount on convertible debenture		271,460
Amortization of customer list	73,379	72,975
Amortization of deferred financing costs		1,703
Change in fair value of make whole expense	14,026
Default penalty on convertible debenture		228,505
Gain on forgiveness of debt		3,061
Imputed interest	2,991	2,976
Issuance of shares for consulting services	59,311
Issuance of shares for employee bonuses	671,831
Issuance of shares for services	188,250
Liability for shares issuable – related party		(239,683)
Loss (gain) on change in fair value of derivative liabilities	(399,465)	278,562
Changes in operating assets and liabilities:
Accounts receivable	281,462	(50,701)
Accounts receivable – related party	(194,444)	63,000
Prepaid expenses	(155,761)
Inventory	(117,215)	(2,605)
Prepaid inventory	297,305
Accounts payable and accrued liabilities	(19,848)	22,534
Accounts payable – related party	(230,069)	(7,490)
Deferred revenue	146,250
Due to related parties	66,110	(54,291)
Net cash used in operating activities	(48,034)	(135,528)
Investing Activities
Acquisition of intangible assets	(2,247)
Net cash used in investing activities	(2,247)
Financing Activities
Repayments of loans payable	(19,491)
Repayments of convertible debentures	(180,000)
Net cash used in financing activities	(199,491)
Decrease in cash	(249,772)	(135,528)
Cash, beginning of period	388,183	189,104
Cash, end of period	$ 138,411	53,576
Non-cash transactions
Common shares issued for convertible notes and accrued interest		123,230
Reclassification of derivative liability to APIC		$ 117,520

1. Nature of Operations and Con

1. Nature of Operations and Continuance of Business	6 Months Ended
	Jun. 30, 2016
Nature Of Operations And Substantial Doubt About Going Concern [Abstract]
Nature Of Operations And Substantial Doubt About Going Concern	1. Nature of Operations and Continuance of Business Stealth Technologies, Inc. (formerly Excelsis Investments, Inc.) (the "Company") was incorporated in the state of Nevada on May 27, 2010 under the name "Pub Crawl Holdings, Inc". On June 14, 2010, the Company entered into an Assignment Agreement (the "Acquisition") with PB PubCrawl.com LLC ("PubCrawl"), a California limited liability company, whereby the Company acquired a 100% interest in the member shares of PubCrawl in exchange for 500,000 common shares of the Company. The Acquisition was accounted for in accordance with ASC 805-50, Related Issues, as the companies were under common control prior to acquisition. On September 3, 2012, the Company sold their rights to PubCrawl to the former President and Director of the Company. On November 28, 2012, the Company acquired 100% of the members shares of Stealth Card Inc. (formerly Mobile Dynamic Marketing, Inc.) ("Stealth Card"), a company incorporated in the state of Florida on November 6, 2012, in exchange for the issuance of 1,000,000 common shares. As part of the acquisition, the Company cancelled 15,000,000 issued and outstanding common shares held by the former President and Director of the Company and the management and directors of Stealth Card acquired 7,500,000 common shares of the Company in a private transaction with the former President and Director of the Company. Effectively, Stealth Card held 73% of the issued and outstanding common shares of the Company and the transaction has been accounted for as a reverse merger, where Stealth Card is deemed to be the acquirer for accounting purposes. On July 13, 2013, the Company entered into a share exchange agreement with Career Start, Inc. ("Career"), a private corporation formed under the state of Florida on February 4, 2013. Under the terms of the agreement, the Company acquired the net assets of Career in exchange for 4,714,286 common shares of the Company. The acquisition was between two related parties and has been accounted on a cost basis. On October 24, 2013, the Company effected a corporation name change to Excelsis Investments Inc. On March 11, 2014, the Company announces its name change from Pub Crawl Holdings to Excelsis Investments, Inc. On September 1, 2014, the Company entered into a purchase agreement with a non-related party to purchase intangible assets by issuing 30% of the outstanding common shares of the Company as determined on an as-converted, fully-diluted basis, which shall not be subject to dilution by any future issuances for the purchase of 3,000 customer accounts The Company is recognizing the revenue generated from the intangible asset on a net basis. On November 5, 2014, the Company entered into share exchange agreement with a former officer of the Company in regards to common shares in the Company's wholly-owned subsidiaries, Career Start, Inc ("CSI") and Career Start Management ("CSM"), private corporations incorporated in the state of Florida and New York, respectively. Under the terms of the agreement, the Company received 3,111,429 shares of the Company held by the former officer in exchange for 100% of the issued and outstanding common shares of CSI and CSM. Subsequent to the disposal of the subsidiaries, the Company has turned its focus on the development and retail of stealth cards, a product meant to block RFID (Radio Frequency Identifier Signal) chipped cards from being read when placed in the correct orientation to help users secure their personal information. On March 14, 2016, the Company incorporated a new wholly owned subsidiary, Safety Technologies Inc., a Nevada company. The Company's intention is to sell products other than the stealth cards, through the subsidiary. As at June 30, 2016, there has been no activity within the subsidiary. On May 19, 2016, the Company's wholly-owned subsidiary, Mobile Dynamic Marking, Inc. changes its name to Stealth Card Inc. On May 26, 2016, the Company changed its name from Excelsis Investments Inc. to Stealth Technologies, Inc. These consolidated financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As at June 30, 2016, the Company has a working capital deficit of $1,346,258 and an accumulated deficit of $3,686,520. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, and its ability to identify future investment opportunities and obtain the necessary debt or equity financing, and generating profitable operations from the Company's future operations. These factors raise substantial doubt regarding the Company's ability to continue as a going concern. These consolidated financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	2. Summary of Significant Accounting Policies a) Basis of Presentation and Principles of Consolidation The financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States ("US GAAP") and are expressed in U.S. dollars. These consolidated financial statements comprise the accounts of the Company and its wholly-owned subsidiary, Safety Technologies Inc., a Nevada company. All intercompany transactions have been eliminated on consolidation. The Company's fiscal year end is December 31. b) Interim Consolidated Financial Statements These interim unaudited consolidated financial statements have been prepared on the same basis as the annual consolidated financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company's consolidated financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period. These unaudited condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. Therefore, these financial statements should be read in conjunction with the financial statements and accompanying notes filed with the U.S. Securities and Exchange Commission in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2015. c) Accounts Receivable Accounts receivable represents amounts owed from customers for contracting employees and from consulting services. Amounts are presented net of the allowance for doubtful accounts, which represents the Company's best estimate of the amount of probable credit losses in the existing accounts receivable balance. The Company determines allowance for doubtful accounts based upon historical experience and current economic conditions. The Company reviews the adequacy of its allowance for doubtful accounts on a regular basis. As of June 30, 2016 and December 31, 2015, the Company had no allowances for doubtful accounts. d) Inventory Inventory is comprised of stealth cards purchased for resell, and is recorded at the lower of cost or net realizable value on a first-in first-out basis. The Company establishes inventory reserves for estimated obsolete or unsaleable inventory equal to the difference between the cost of inventory and the estimated realizable value based upon assumptions about future and market conditions. e) Intangible Assets Intangible assets are stated at cost less accumulated amortization and are comprised of customer accounts acquired with an useful life of three years and amortized straight line over three years and patent and trademark development costs, which are currently being developed and has not been placed in use. During the quarter ended June 30, 2016, the Company incurred $73,379 (2015 - $72,975) in amortization expense. f) Basic and Diluted Net Loss per Share The Company computes net loss per share in accordance with ASC 260, Earnings per Share g) Revenue Recognition The Company recognizes and accounts for revenue in accordance with ASC 605 as a principal on the sale of goods. Pursuant to ASC 605, Revenue Recognition, revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred, the amount is fixed and determinable, risk of ownership has passed to the customer and collection is reasonably assured. The Company considered ASC 605-45, Principal Agent Considerations, and determined that the Company acts as a principal in its revenue-earnings activities as they are responsible for the production of goods purchased by the customer, can determine the pricing costs, goods purchased are paid directly by the Company, and has a credit risk with respect to collection of amounts owed by its customers. The Company considered ASC 605-45, Principal Agent Considerations, and determined that the Company does not act as the principal in its revenue-earnings activities related to certain service revenues where the Company does not bear enough of the risks in the transaction to record them on the gross basis . Revenues for these activities are recorded based on the net amount earned by the Company. h) Cost of Revenue For the Company's product sales, cost of revenue consists of inventory sold in each transaction. For the Company's service sales, cost of revenue consists of engineering services provided by a related party. i) Financial Instruments The following table represents assets and liabilities that are measured and recognized in fair value as of June 30, 2016, on a recurring basis: Level 1 $ Level 2 $ Level 3 $ Total gains and (losses) Cash 138,411 – – – Liability for shares issuable – related party (845,259 ) – – (14,026 ) Derivative liabilities – – (91,784 ) 399,465 Total (706,848 ) – (91,784 ) 385,439 The following table represents assets and liabilities that are measured and recognized in fair value as of December 31, 2015, on a recurring basis: Level 1 $ Level 2 $ Level 3 $ Total gains and (losses) Cash 388,183 – – – Liabilities for shares issuable – related party (831,233 ) – – (318,132 ) Derivative liabilities – – (491,249 ) (341,192 ) Total (443,050 ) – (491,249 ) (659,324 ) i) Financial Instruments (continued) As of June 30, 2016, the Company had a derivative liability amount of $91,784 (December 31, 2015 – $491,249) which was classified as a Level 3 financial instrument, and a gain on change in fair value of derivative liabilities of $399,465 (December 31, 2015 – loss of $341,192).

3. Convertible Debenture

3. Convertible Debenture	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
Debt Disclosure [Text Block]	3. Convertible Debenture a) On June 20, 2014, the Company entered into a consulting agreement for consulting services. Pursuant to the agreement, the Company is to pay the consultant a commencement fee of $250,000. On June 23, 2014, the Company issued a $250,000 convertible note which is unsecured, non-bearing interest and due on June 22, 2015. The note is convertible into shares of common stock 180 days after the date of issuance (December 17, 2014) at a conversion rate of 90% of the lowest closing bid prices of the Company's common stock for the ten trading days ending one trading day prior to the date the conversion notice is sent by the holder to the Company. As at June 30, 2016, accrued interest of $70,159 (December 31, 2015 - $36,416) has been recorded in accounts payable and accrued liabilities. On December 17, 2014, the note became convertible resulting in the Company recording a derivative liability of $94,188 with a corresponding adjustment to loss on change in fair value of derivative liabilities of $1,050 as accretion expense. Pursuant to the agreement, the convertible note matured on June 22, 2015 and 150% of the remaining balance in principal and interest is payable. During the year ended December 31, 2015, the Company included a penalty of $125,000 in interest expense for the additional amount payable due to defaulting on the loan. On February 2, 2016, the Company entered into a settlement agreement whereby the Company would pay $20,000 on or before the third day of each subsequent month until the entire balance is repaid. During the period ended June 30, 2016, the Company had amortized $nil (December 31, 2015 - $88,357) of the debt discount to interest expense. During the period ended June 30, 2016, the Company repaid $120,000 (December 31, 2015 - $nil) of the outstanding loan pursuant to a settlement agreement. As June 30, 2016, the carrying value of the debenture was $255,000 (December 31, 2015 - $375,000) and the fair value of the derivative liability was $75,903 (December 31, 2015 - $304,860). b) On June 23, 2014, the Company issued a $50,000 convertible note which is unsecured, bears interest at 8% per annum and due on June 22, 2015. The Company received $49,400, net of issuance fee of $600. The note is convertible into shares of common stock 180 days after the date of issuance (December 20, 2014) at a conversion rate of 60% of the lowest closing bid prices of the Company's common stock for the five trading days ending one trading day prior to the date the conversion notice is sent by the holder to the Company. As at June 30, 2016, accrued interest of $13,661 (December 31, 2015 - $10,267) has been recorded in accounts payable and accrued liabilities. On December 20, 2014, the note became convertible resulting in the Company recording a derivative liability of $49,618 with a corresponding adjustment to loss on change in fair value of derivative liabilities. Pursuant to the agreement, the convertible note matured on June 22, 2015 and 150% of the remaining balance in principal and interest is payable. During year ended December 31, 2015, the Company included a penalty of $12,753 in interest expense for the additional amount payable due to defaulting on the loan. During the year ended December 31, 2015, the Company issued 2,001,225 common shares for the conversion of $24,495. On February 2, 2016, the Company entered into a settlement agreement whereby the Company would pay $5,000 on or before the third day of each subsequent month until the entire balance is repaid. During the period ended June 30, 2016, the Company had amortized $nil (December 31, 2015 - $46,652) of the debt discount to interest expense. During the period ended June 30, 2016, the Company repaid $30,000 (December 31, 2015 - $nil) of the outstanding loan pursuant to a settlement agreement. As at June 30, 2016, the carrying value of the debenture was $8,258 (December 31, 2015 - $38,258) and the fair value of the derivative liability was $3,142 (December 31, 2015 - $65,853). During the period ended June 30, 2016, the Company amortized $nil (December 31, 2015 - $285) in financing costs. c) On June 25, 2014, the Company issued a $50,000 convertible note which is unsecured, bears interest at 8% per annum and due on June 24, 2015. The Company received $49,400, net of issuance fee of $600. The note is convertible into shares of common stock 180 days after the date of issuance (December 22, 2014) at a conversion rate of 60% of the lowest closing bid prices of the Company's common stock for the five trading days ending one trading day prior to the date the conversion notice is sent by the holder to the Company. As at June 30, 2016, accrued interest of $20,985 (December 31, 2015 - $13,854) has been recorded in accounts payable and accrued liabilities. On December 22, 2014, the note became convertible resulting in the Company recording a derivative liability of $49,464 with a corresponding adjustment to loss on change in fair value of derivative liabilities. Pursuant to the agreement, the convertible note matured on June 24, 2015 and 150% of the remaining balance in principal and interest is payable. During the year ended December 31, 2015, the Company included a penalty of $25,000 in interest expense for the additional amount payable due to defaulting on the loan. On February 2, 2016, the Company entered into a settlement agreement whereby the Company would pay $5,000 on or before the third day of each subsequent month until the entire balance is repaid. During the period ended June 30, 2016, the Company had amortized $nil (December 31, 2015 - $47,044) of the debt discount to interest expense. During the period ended June 30, 2016, the Company repaid $30,000 (December 31, 2015 - $nil) of the outstanding loan pursuant to a settlement agreement. As at June 30, 2016, the carrying value of the debenture was $45,000 (December 31, 2015 - $75,000) and the fair value of the derivative liability was $12,739 (December 31, 2015 - $120,536). During the period ended June 30, 2016, the Company amortized $nil (December 31, 2015 - $288) in financing costs.

4. Derivative Liabilities

4. Derivative Liabilities	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities Disclosure [Text Block]	4. Derivative Liabilities The Company records the fair value of the of the conversion price of the convertible debentures disclosed in Note 3 in accordance with ASC 815, Derivatives and Hedging. The fair value of the derivative was calculated using a multi-nominal lattice model performed by an independent qualified business valuator. The fair value of the derivative liability is revalued on each balance sheet date with corresponding gains and losses recorded in the consolidated statement of operations. During the period June 30, 2016, the Company recorded a gain on the change in fair value of derivative liability of $399,465 (December 31, 2015 – loss of $341,192). As at June 30, 2016, the Company recorded a derivative liability of $91,784 (December 31, 2015 - $491,249). The following inputs and assumptions were used to value the convertible debentures outstanding during the period ended June 30, 2016: · The range of stock prices for the valuation of the derivative instruments at June 30, 2016 ranged from $0.0221 to $0.0285 per share of common stock. · The debtholder would redeem (with penalties of 0% to 50% depending on the date and full-partial redemption) based on availability of alternative financing of 70%, 80%, and 90%. · The debtholder would automatically convert note at maturity if the registration was effective and the Company is not in default. · The projected annual volatility for each valuation period based on the historic volatility of the Company 410% - 469% · Capital raising events of $100,000 would occur in each quarter at 75% of market generating dilutive reset events at prices below $0.014 (rounded) for the convertible debentures. A summary of the activity of the derivative liability is shown below: $ Balance, December 31, 2015 491,249 Gain in change in fair value of the derivative (399,465 ) Balance, June 30, 2016 91,784

5. Related Party Transactions

5. Related Party Transactions	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	5. Related Party Transactions a) As at June 30, 2016, the Company was owed $199,444 (December 31, 2015 - $5,000) from sales revenue from a significant shareholder which is non-interest bearing, unsecured, and due on demand. This amount has been included in accounts receivable – related party. b) As at June 30, 2016, the Company owed $58,237 (December 31, 2015 - $25,150) to the President of the Company, which is non-interest bearing, unsecured, and due on demand. c) As at June 30, 2016, the Company owed $56,021 (December 31, 2015 - $22,998) to the Chief Financial Officer of the Company, which is non-interest bearing, unsecured, and due on demand. d) As at June 30, 2016, the Company recorded a liability for shares issuable of $845,259 (December 31, 2015 - $831,233) relating to 38,247,015 common shares to be issued to a significant shareholder pursuant to the acquisition agreement for the intangible assets. During the period ended June 30, 2016, the Company recorded $14,026 (December 31, 2015 – loss of $318,132) as a gain in the fair value of the shares issuable to the significant shareholder. e) As at June 30, 2016, the Company owed $75,000 (December 31, 2015 - $75,000) to a significant shareholder for a loan payable. The loan is unsecured, non-interest bearing, and due on July 25, 2017. f) During the period ended June 30, 2016, the Company generated revenues of $236,944 (December 31, 2015 - $837,100) from a significant shareholder. g) During the period ended June 30, 2016, the Company incurred payroll expense of $256,485 (December 31, 2015 - $267,495) to management and officers of the Company. h) During the period ended June 30, 2016, the Company incurred bonuses on sales of stealth cards of $144,513 (December 31, 2015 - $nil) to management and officers of the Company which has been included in cost of sales. Bonuses accrue on total gross sales at a rate of 5% each to the Chief Executive Officer and the Chief Financial Officer of the Company. i) During the period ended June 30, 2016, the Company issued 23,166,555 (December 31, 2015 - nil) common shares with a fair value of $671,830 (December 31, 2015 - $nil) to management and officers of the Company which has been included in consulting expenses. j) During the period ended June 30, 2016, the Company incurred engineering expense of $nil (December 31, 2015 - $132,550) to company owned by the mother of the President of the Company, which was included in cost of goods sold. As at June 30, 2016, the Company owed $15,201 (December 31, 2015 - $245,270) to the company owned by the mother of the President of the Company, which is non-interest bearing, unsecured, and due on demand. The amount owing has been recorded as accounts payable – related party.

6. Loans Payable

6. Loans Payable	6 Months Ended
	Jun. 30, 2016
Payable Loans [Abstract]
Payable Loans	6. Loans Payable a) On July 25, 2014, the Company entered into a loan agreement with a related party for a loan of $175,000. Under the terms of the note, the amount is unsecured, non-interest bearing, and due on July 25, 2017. The unpaid principal is to be repaid in installments defined as the collected sum of 10% of the unadjusted gross sales revenue (net of returns and chargebacks) with the installments to begin once the Company has received the gross proceeds of $175,000. As at June 30, 2016, the Company had received loan proceeds of $75,000 (December 31, 2015 - $75,000). During the period ended June 30, 2016, the Company recorded imputed interest of $2,991 (December 31, 2015 - $6,000). b) At June 30, 2016, the Company owes $nil (December 31, 2015 - $19,491) pursuant to a future receivable sales agreement with a non-related party. Under the terms of the agreement, the amount is secured by $73,639 of the Company's accounts receivable, bears interest at 30%, and due in installments of $792 payable on each business day. c) At June 30, 2016, the Company owes $120,000 (December 31, 2015 - $120,000) in a note payable to a non-related party. Under the terms of the note, the amount is unsecured, bears interest at 10% per annum, and due on demand.

7. Common Shares

7. Common Shares	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	7. Common Shares a) On January 1, 2016, the Company issued 500,000 common shares with a fair value of $14,250 to unrelated parties for consulting services. b) On January 8, 2016, the Company issued 3,000,000 common shares with a fair value of $87,000 to unrelated parties for consulting services. c) On March 26, 2016, the Company issued 13,166,555 common shares with a fair value of $381,830 to the President of the Company for employee bonuses. d) On March 26, 2016, the Company issued 10,000,000 common shares with a fair value of $290,000 to the Chief Financial Officer of the Company for employee bonuses. e) On March 26, 2016, the Company issued 3,000,000 common shares with a fair value of $87,000 to a non-related party for consulting services. f) On at June 16, 2016, the Company issued 2,965,558 common shares with a fair value of $59,311 to unrelated parties for consulting services.

8. Commitment and Contingencies

8. Commitment and Contingencies	6 Months Ended
	Jun. 30, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	8. Commitment and Contingencies a) On February 16, 2015, the Company entered into a lease agreement for a six month term commencing on March 1, 2015. The Company will have three consecutive options to renew the lease for an additional six months each. Pursuant to the agreement the Company has agreed to pay monthly amounts of $1,092 plus applicable sales taxes and pay a deposit of $2,668 consisting of the first month's rent and a $1,500 security deposit. On August 13, 2015, the Company entered into an amendment agreement to renew the lease agreement. Pursuant to the amendment, the expiry date is extended to February 28, 2016. On January 29, 2016, the lease was further amended to have an expiry date of August 31, 2016, and the Company has agreed to pay monthly amounts of $1,135 plus applicable sales taxes b) On December 22, 2015, the Company was served notice by an individual claiming that he had received electronic emails recommending the purchase of the Company's common stock. The plantiff claims that during the period of December 3, 2012 to December 7, 2012, he had received eighteen unsolicited electronic mails in regards to the purchase of the Company's common stock and is seeking damages of $1,000 for each electronic mail he has received, plus $1,700 in attorney fees for a total claim of $19,700. Per the plaintiff's claim, he has served notice to the Company since 2013. However, the Company asserts that they have not received any notices in regards to these claims until December of 2015. The plaintiff presented his case in court on February 19, 2016 and the court ruled in favor of the plaintiff for the full amount of $19,700. As at June 30, 2016, the Company accrued the expense as other loss and has included the liability in accounts payables and accrued liabilities. c) On February 2, 2016, the Company and three debt holders entered into a settlement agreement, where the Company agrees to pay $30,000 to the debt holders on or before the third day of each subsequent month until the entire balance is repaid by the Company. Refer to Note 3(a), (b), and (c). d) On February 1, 2016, the Company received notice that a third party was seeking compensation for damages as a result of false advertisements made by the Company in regards to the Company's stealth cards. The plaintiff is a manufacturer and distributor of radio frequency identification (RFID) chip protection cards which are in competition with the Company's stealth cards. The Company has filed an answer to the plaintiff's complaint, with denials and affirmative defenses, and is unable to estimate the likelihood of any outcome as at June 30, 2016. e) On February 22, 2016, the Company received notice that a consultant was seeking compensation for breach of agreement. Pursuant to the agreement, the parties agreed to equally split any net profits generated from the sale of Stealth cards made by the consultant. The Company asserts that historical sales generated from the sale of the Stealth Cards were not as a result of the consultant's services, and therefore the Company should not be liable for any compensation due to the consultant. The Company has filed a motion to dismiss, and is awaiting the hearing.

2. Summary of Significant Acc14

2. Summary of Significant Accounting Policies (Tables)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	Level 1 $ Level 2 $ Level 3 $ Total gains and (losses) Cash 138,411 – – – Liability for shares issuable – related party (845,259 ) – – (14,026 ) Derivative liabilities – – (91,784 ) 399,465 Total (706,848 ) – (91,784 ) 385,439	Level 1 $ Level 2 $ Level 3 $ Total gains and (losses) Cash 388,183 – – – Liabilities for shares issuable – related party (831,233 ) – – (318,132 ) Derivative liabilities – – (491,249 ) (341,192 ) Total (443,050 ) – (491,249 ) (659,324 )

4. Derivative Liabilities (Tabl

4. Derivative Liabilities (Tables)	6 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments, Gain (Loss) [Table Text Block]	$ Balance, December 31, 2015 491,249 Gain in change in fair value of the derivative (399,465 ) Balance, June 30, 2016 91,784

1. Nature of Operations and C16

1. Nature of Operations and Continuance of Business (Details) - USD ($)	Jul. 13, 2013	Nov. 06, 2012	Jun. 14, 2010	Jun. 30, 2016	Dec. 31, 2015	Nov. 05, 2014	Sep. 01, 2014	Nov. 07, 2012
Nature Of Operations And Substantial Doubt About Going Concern [Abstract]
Equity Method Investment, Ownership Percentage		100.00%	100.00%			100.00%	30.00%	73.00%
Business Acquisition, Share Exchange	4,714,286		500,000
Stock Issued During Period, Shares, New Issues		1,000,000
Stock Cancelled During Period, Shares, Cancelled		15,000,000
Business Disposal, Share Exchange		7,500,000				3,111,429
Working Capital (in Dollars)				$ 1,346,258
Retained Earnings (Accumulated Deficit) (in Dollars)				$ (3,686,520)	$ (2,954,373)

2. Summary of Significant Acc17

2. Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Accounting Policies [Abstract]
Amortization of Intangible Assets	$ 73,379	$ 73,379	$ 72,975	$ 72,975
Earnings Per Share, Potentially Dilutive Securities	16,836,916			28,280,185
Derivative Liability, Current	$ 91,784	91,784		$ 491,249
Derivative, Gain (Loss) on Derivative, Net	$ 399,465	$ 399,465		$ (341,192)

2. Summary of Significant Acc

2. Summary of Significant Accounting Policies (Details) - Assets and Liabilities Measured at Fair Value - June 30, 2016 - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Assets and Liabilities Measured at Fair Value - June 30, 2016 [Abstract]
Cash	$ 138,411	$ 388,183	$ 53,576	$ 189,104
Liability for shares issuable – related party	(845,259)	(831,233)
Liability for shares issuable – related party	(14,026)	(318,132)
Derivative liabilities	91,784	491,249
Derivative liabilities	399,465	(341,192)
Total	(706,848)	(443,050)
Total	(91,784)	(491,249)
Total	$ 385,439	$ (659,324)

2. Summary of Significant A19

2. Summary of Significant Accounting Policies (Details) - Assets and Liabilities Measured at Fair Value - December 31, 2015 - USD ($)	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Assets and Liabilities Measured at Fair Value - December 31, 2015 [Abstract]
Cash	$ 138,411	$ 388,183	$ 53,576	$ 189,104
Liabilities for shares issuable – related party	(845,259)	(831,233)
Liabilities for shares issuable – related party	(14,026)	(318,132)
Derivative liabilities	91,784	491,249
Derivative liabilities	399,465	(341,192)
Total	(706,848)	(443,050)
Total	(91,784)	(491,249)
Total	$ 385,439	$ (659,324)

3. Convertible Debenture (Detai

3. Convertible Debenture (Details)	Feb. 04, 2016USD ($)	Feb. 03, 2016USD ($)	Feb. 02, 2016USD ($)	Jun. 30, 2016USD ($)	Mar. 30, 2016	Jun. 30, 2015USD ($)	Jun. 30, 2016USD ($)	Jun. 29, 2016USD ($)	Jun. 28, 2016USD ($)	Jun. 30, 2015USD ($)	Jun. 24, 2015	Dec. 31, 2014	Dec. 22, 2014USD ($)	Dec. 20, 2014USD ($)	Jun. 20, 2014USD ($)	Dec. 31, 2015USD ($)	Dec. 30, 2015USD ($)shares	Dec. 29, 2015USD ($)	Jun. 22, 2015	Jun. 22, 2015USD ($)	Jul. 25, 2017	Jun. 30, 2106USD ($)	Dec. 17, 2014USD ($)	Jun. 25, 2014USD ($)	Jun. 23, 2014USD ($)
Debt Disclosure [Abstract]
Professional and Contract Services Expense				$ 94,735		$ 39,499	$ 1,044,576			$ 57,139					$ 250,000	$ 132,550
Convertible Notes Payable				308,258			308,258								$ 250,000	488,258								$ 50,000	$ 50,000
Debt Instrument, Convertible, Conversion Ratio												0.90	0.60	0.60
Accounts Payable and Accrued Liabilities				70,159			70,159	$ 13,661	$ 20,985							36,416	$ 10,267	$ 13,854
Derivative Liability				75,903			75,903	3,142	12,739				$ 49,464	$ 49,618		304,860	65,853	120,536					$ 94,188
Accretion Expense																				$ 1,050
Convertible Debenture, Due at Maturity											150.00%								150.00%	150.00%
Debt Instrument, Convertible Note, Penalty																125,000	12,753	25,000
Debt Instrument, Periodic Payment	$ 5,000	$ 5,000	$ 20,000																			$ 792
Amortization of Debt Discount (Premium)																88,357	46,652	47,044
Repayments of Convertible Debt				120,000			180,000	30,000	30,000
Debenture, at Carrying Value				$ 255,000			$ 255,000	$ 8,258	45,000							$ 375,000	38,258	$ 75,000
Debt Instrument, Interest Rate Terms					8%								8%								10%	30%
Proceeds from Issuance of Debt													$ 49,400				49,400
Payments of Debt Issuance Costs													$ 600				$ 600
Conversion of Stock, Shares Issued (in Shares) | shares																	2,001,225
Conversion of Stock, Amount Converted																	$ 24,495
Amortization of Debt Issuance Costs									$ 288	$ 1,703							$ 285

4. Derivative Liabilities (Deta

4. Derivative Liabilities (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative, Gain (Loss) on Derivative, Net (in Dollars)	$ 399,465	$ 399,465	$ (341,192)
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value (in Dollars)	$ 91,784	$ 91,784	$ 491,249
Fair Value Assumptions, Low Exercise Price (in Dollars per share)		$ 0.0221
Fair Value Assumptions, High Exercise Price (in Dollars per share)		$ 0.0285
Fair Value Assumptions, Low Penalty, Risk-Free Interest Rate		0.00%
Fair Value Assumptions, High Penalty, Risk-Free Interest Rate		50.00%
Fair Value Assumptions, Low Risk Free Interest Rate		70.00%
Fair Value Assumptions, Medium Risk Free Interest Rate (in Dollars)		$ 0.80
Fair Value Assumptions, High Risk Free Interest Rate		90.00%
Fair Value Assumptions, Lowest Expected Volatility Rate		410.00%
Fair Value Assumptions, Highest Expected Volatility Rate		469.00%

4. Derivative Liabilities (De

4. Derivative Liabilities (Details) - Derivative Liability - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Derivative Liability [Abstract]
Balance	$ 91,784	$ 491,249
Gain in change in fair value of the derivative	$ (399,465)

5. Related Party Transactions (

5. Related Party Transactions (Details) - USD ($)	Mar. 31, 2016	Jun. 30, 2016	Jan. 31, 2016	Jan. 31, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 20, 2014	Dec. 31, 2015
Related Party Transactions [Abstract]
Due from Related Parties, Current		$ 199,444			$ 199,444		$ 199,444			$ 5,000
Due to President		58,237			58,237		58,237			25,150
Due to Chief Financial Officer		56,021			56,021		56,021			22,998
Shares Issuable, Value, Related Party		$ 845,259			$ 845,259		$ 845,259			831,233
Shares Issuable, Related Party (in Shares)		38,247,015			38,247,015		38,247,015
Fair Value, Option, Changes in Fair Value, Gain (Loss)							$ 14,026			318,132
Accounts Payable, Related Parties		$ 75,000			$ 75,000		75,000			75,000
Revenue of Goods - Related Party							236,944			837,100
Accrued Salaries, Current		256,485			256,485		256,485			267,495
Accrued Bonuses, Current		$ 144,513			144,513		$ 144,513
Stock Issued During Period, Shares, Issued for Services (in Shares)	3,000,000	2,965,558	500,000	3,000,000			23,166,555
Stock Issued During Period, Value, Issued for Services	$ 87,000	$ 59,311	$ 14,250	$ 87,000			$ 188,250			671,830
Professional and Contract Services Expense					94,735	$ 39,499	1,044,576	$ 57,139	$ 250,000	132,550
Due to Other Related Parties		$ 15,201			$ 15,201		$ 15,201			$ 245,270

6. Loans Payable (Details)

6. Loans Payable (Details) - USD ($)	Feb. 04, 2016	Feb. 03, 2016	Feb. 02, 2016	Mar. 30, 2016	Jun. 30, 2016	Jun. 30, 2015	Dec. 22, 2014	Dec. 31, 2015	Jul. 25, 2017	Jun. 30, 2106	Jul. 25, 2014
Payable Loans [Abstract]
Notes Payable, Related Parties					$ 75,000			$ 75,000			$ 175,000
Debt Instrument, Interest Rate Terms				8%			8%		10%	30%
Proceeds from Notes Payable					75,000			75,000
Imputed Interest					2,991	$ 2,976		6,000
Loans Payable								19,491
Loans and Leases Receivable, Collateral for Secured Borrowings					$ 73,639
Debt Instrument, Periodic Payment	$ 5,000	$ 5,000	$ 20,000							$ 792
Notes Payable								$ 120,000		$ 120,000
Debt Instrument, Interest Rate, Effective Percentage					10.00%

7. Common Shares (Details)

7. Common Shares (Details) - USD ($)	Mar. 31, 2016	Mar. 31, 2016	Jun. 30, 2016	Jan. 31, 2016	Jan. 31, 2016	Jun. 30, 2016	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Stock Issued During Period, Shares, Issued for Services		3,000,000	2,965,558	500,000	3,000,000	23,166,555
Stock Issued During Period, Value, Issued for Services		$ 87,000	$ 59,311	$ 14,250	$ 87,000	$ 188,250	$ 671,830
Stock Issued During Period, Shares, Employee Bonuses	10,000,000	13,166,555
Stock Issued During Period, Value, Employee Bonuses	$ 290,000	$ 381,830

8. Commitment and Contingenci26

8. Commitment and Contingencies (Details) - USD ($)	4 Months Ended	10 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015	Aug. 31, 2016	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Payments for Rent		$ 1,092	$ 1,135
Security Deposit		$ 1,500		$ 1,500
Loss Contingency, Damages Sought				$ 19,700
Loss Contingency, Damages Awarded, Value	$ 19,700
Contractual Obligation	$ 30,000