Can B (CANB) 10-Q 22 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2017shares
Document and Entity Information:
Entity Registrant Name	Canbiola, Inc.
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Trading Symbol	canb
Amendment Flag	false
Entity Central Index Key	1,509,957
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	160,179,466
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

Canbiola, Inc. - Consolidated B

Canbiola, Inc. - Consolidated Balance Sheets - USD ($)		Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents		$ 257	$ 30,193
Accounts receivable, less allowance for doubtful accounts	[1]	24,690	13,742
Inventory		10,946
Prepaid expenses		88,246	2,500
TOTAL CURRENT ASSETS		124,139	46,435
Property and equipment, less accumulated depreciation	[2]	12,761	14,375
Other Assets:
Security Deposit		11,687	11,687
Note receivable		39,000	39,000
Intangible assets, net of accumulated amortization	[3]	23,495	25,481
Total other assets		74,182	76,168
Total Assets		211,082	136,978
Current Liabilities:
Notes and loans payable		146,420	58,315
Derivative Liability		530,343	352,688
Accounts payable		103,610	54,714
Accrued officers compensation		170,750	134,750
Other accrued expenses payable		60,583	51,099
Total current liabilities and total liabilities		1,011,706	651,566
Commitments and Contingencies	[4]
Stockholders' Equity (deficit):
Preferred stock	[5]	103,664	103,664
Common stock	[6]	12,087,817	11,889,505
Accumulated deficit		(12,992,105)	(12,507,757)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)		(800,624)	(514,588)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)		$ 211,082	$ 136,978
[1]	Accounts receivable, less allowance for doubtful accounts of $0 and $0, respectively.
[2]	Property and equipment, at cost less accumulated depreciation of $18,636 and $17,021, respectively.
[3]	Intangible assets, net of accumulated amortization of $36,933 and $34,947, respectively.
[4]	See Notes 7 and 12
[5]	no par value: authorized 20 shares, issued and outstanding 10 and 10 shares, respectively.
[6]	no par value; authorized 400,000,000 shares, issued and outstanding 160,179,466 and 146,008,250 shares, respectively.

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position
Preferred Stock, Par Value
Preferred Stock, Shares Authorized	20	20
Preferred Stock, Shares Issued	10	10
Preferred Stock, Shares Outstanding	10	10
Common Stock, Par Value
Common Stock, Shares Authorized	400,000,000	400,000,000
Common Stock, Shares Issued	160,179,466	146,008,250
Common Stock, Shares Outstanding	160,179,466	146,008,250

Canbiola, Inc. - Consolidated S

Canbiola, Inc. - Consolidated Statements of Operations and Comprehensive Loss - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues
Service Revenue		$ 23,735	$ 25,437	$ 41,717	$ 47,663
Product Sales		2,135		2,135
Total Revenues		25,870	25,437	43,842	47,663
Operating cost and expenses:
Cost of product sales		1,139		1,139
Officers and directors compensation and payroll taxes	[1]	19,377	59,746	38,832	120,567
Consulting fees	[2]	55,082	11,234	71,782	67,095
Advertising expense		20,893		21,510	4,750
Hosting expense		12,246	1,842	14,687	12,140
Rent expense		16,265	16,265	32,530	32,530
Professional fees		46,758	12,288	62,736	16,737
Depreciation of property and equipment		807	806	1,614	1,653
Amortization of intangible assets		993	993	1,986	1,987
Other		38,775	8,727	60,519	21,446
TOTAL OPERATING EXPENSES		212,335	111,901	307,335	278,905
Loss from operations		(186,465)	(86,464)	(263,493)	(231,242)
Other income (expense):
Interest income		293	292	586	585
Income (expense) from derivative liability		(250,334)		(53,655)
Interest expense	[3]	(71,942)	(125)	(167,786)	(250)
Other income (expense) - net		(321,983)	167	(220,855)	335
Loss before provision for income taxes		(508,448)	(86,297)	(484,348)	(230,907)
Provision for income taxes
Net loss and comprehensive loss		$ (508,448)	$ (86,297)	$ (484,348)	$ (230,907)
Net loss per common share, basic		$ 0	$ 0	$ 0	$ 0
Net loss per common share, diluted		$ 0	$ 0	$ 0	$ 0
Weighted average common shares outstanding, basic		158,836,059	145,608,250	153,334,334	455,555,368
Weighted average common shares outstanding, diluted		278,278,009	145,608,250	267,980,990	145,555,368
[1]	Including stock-based compensation of $0, $0, $0, and $0 respectively
[2]	Including stock-based compensation of $37,229, $30,000, $26,229, and $0 respectively
[3]	Including amortization of debt discounts of $153,105, $0, $65,375 and $0 respectively

Canbiola, Inc. - Consolidated 5

Canbiola, Inc. - Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating Activities:
Net income (loss)	$ (484,348)	$ (230,907)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Stock-based compensation	37,229	30,000
Expense (income) from derivative liability	53,655
Depreciation of property and equipment	1,614	1,653
Amortization of intangible assets	1,986	1,987
Amortization of debt discounts	153,105
Changes in operating assets and liabilities:
Accounts receivable, increase decrease	(10,948)	(1,745)
Inventory, increase decrease	(10,946)
Prepaid expenses, increase decrease	2,500	9,671
Accounts payable, increase decrease	48,896	20,219
Accrued officers compensation, increase decrease	36,000	80,000
Other accrued expenses payable, increase decrease	17,321	9,676
Net Cash Used in Operating Activities	(153,936)	(79,446)
Investing Activities:
Net Cash Used in Investing Activities
Financing Activities:
Proceeds received from notes and loans payable	124,000	61,513
Net Cash Provided by Financing Activities	124,000	61,513
Increase (decrease) in cash and cash equivalents	(29,936)	(17,933)
Cash and cash equivalents, beginning of period	30,193	18,373
Cash and cash equivalents, endof period	257	440
SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes paid
Interest paid
NON-CASH INVESTING AND FINANCING ACTIVITIES:
Issuance of common stock in satisfaction of debt	65,000
Issuance of common stock in satisfaction of accrued interest	$ 7,837
Issuance of common stock in satisfaction of accounts payable		$ 21,557

Note 1 - Organization and Descr

Note 1 - Organization and Description of Business	6 Months Ended
	Jun. 30, 2017
Notes
Note 1 - Organization and Description of Business	Note 1 – Organization and Description of Business Canbiola, Inc. was originally incorporated as WrapMail, Inc. (“WRAP”) in Florida on October 11, 2005. Effective January 5, 2015, WRAP acquired 100% ownership of Prosperity Systems, Inc. (“Prosperity”), a New York corporation incorporated on April 2, 2008. On May 15, 2017, WRAP changed its name to Canbiola, Inc. (the “Company” or “CANB” or “Canbiola”). The Company operates several divisions, including document management and email marketing platforms and a division specializing in the sale of products containing CBD. The Company used to operate its document and information platform from its wholly owned subsidiary, Prosperity Systems, Inc (“Prosperity”); however, after the acquisition of Prosperity, the Company transferred Prosperity’s operations to WRAP and is presently in the process of dissolving Prosperity. For the periods presented, the assets, liabilities, revenues, and expenses are those of CANB. Prosperity had no activity for the periods presented. Effective December 27, 2010, WRAP effected a 10 for 1 forward stock split of its common stock. Effective June 4, 2013, WRAP effected a 1 for 10 reverse stock split of its common stock. The accompanying consolidated financial statements retroactively reflect these stock splits. Canbiola, Inc. is a US Company specializing in the sale of a variety of Cannabidiol (Hemp) based products such as oils, creams, moisturizers, chews, vapes, isolate, gel caps, concentrate and water. Canbiola is developing their own line of proprietary products as well as seeking synergistic value through acquisitions in the Hemp Industry. Canbiola aims to be the premier provider of the highest quality Hemp natural products on the market through sourcing the very best raw material and developing a variety of products we believe will improve people's lives in a variety of areas.

Note 2 - Going Concern Uncertai

Note 2 - Going Concern Uncertainty	6 Months Ended
	Jun. 30, 2017
Notes
Note 2 - Going Concern Uncertainty	NOTE 2 – Going Concern Uncertainty The consolidated financial statements have been prepared on a “going concern” basis, which contemplates the realization of assets and liquidation of liabilities in a normal course of business. As of June 30, 2017, the Company had cash and cash equivalents of $257 and negative working capital of $887,567. For the six months ended June 30, 2017 and 2016, the Company had net losses of $484,348 and $230,907, respectively. These factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company plans to improve its financial condition by raising capital through sales of shares of its common stock. Also, the Company plans to start a health supplements business to attain profitable operations. The consolidated financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

Note 3 - Interim Financial Stat

Note 3 - Interim Financial Statements	6 Months Ended
	Jun. 30, 2017
Notes
Note 3 - Interim Financial Statements	NOTE 3 – Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they may not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. The interim financial statements should be read in conjunction with the Company’s latest annual financial statement. In the opinion of management, the unaudited financial statements reflect all adjustments, which include only normal recurring adjustments, necessary for a fair presentation. Operating results for the three-month period ended June 30, 2017 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2017.

Note 4 - Summary of Significant

Note 4 - Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Notes
Note 4 - Summary of Significant Accounting Policies	NOTE 4 – Summary of Significant Accounting Policies (a) Principles of Consolidation The consolidated financial statements include the accounts of WRAP and its wholly owned subsidiary Prosperity from the date of its acquisition on January 5, 2015. All intercompany balances and transactions have been eliminated in consolidation. (b) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. (c) Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, note receivable, notes and loans payable, accounts payable, and accrued expenses payable. Except for the note receivable, the fair value of these financial instruments approximate their carrying amounts reported in the consolidated balance sheets due to the short term maturity of these instruments. Based on comparable instruments with similar terms, the fair value of the note receivable approximates its carrying value. Pursuant to ASC 820, Fair Value Measurements and Disclosures, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 - applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 - applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. (d) Cash and Cash Equivalents The Company considers all liquid investments purchased with a maturity of three months or less to be cash equivalents. (e) Inventory All inventories are finished goods, and stated at the lower of cost or market. Cost is principally determined using the first-in, first-out (FIFO) method. (f) Property and Equipment, Net Property and equipment, net, is stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. Maintenance and repairs are charged to operations as incurred. (g) Intangible Assets, Net Intangible assets, net, are stated at cost less accumulated amortization. Amortization is calculated using the straight-line method over the estimated economic lives of the respective assets. (h) Goodwill and Intangible Assets with Indefinite Lives The Company does not amortize goodwill and intangible assets with indefinite useful lives, but instead tests for impairment at least annually. When conducting the annual impairment test for goodwill, the Company compares the estimated fair value of a reporting unit containing goodwill to its carrying value. If the estimated fair value of the reporting unit is determined to be less than its carrying value, goodwill is reduced and an impairment loss is recorded. (i) Long-lived Assets The Company reviews long-lived assets held and used, intangible assets with finite useful lives and assets held for sale for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an evaluation of recoverability is required, the estimated undiscounted future cash flows associated with the asset is compared to the asset’s carrying amount to determine if a write-down is required. If the undiscounted cash flows are less than the carrying amount, an impairment loss is recorded to the extent that the carrying amount exceeds the fair value. (j) Revenue Recognition The Company recognizes revenue over agreed periods of services delivered to customers, provided there are no uncertainties regarding customer acceptance, persuasive evidence of an arrangement exists; the sales price is fixed or determinable; and collectability is deemed probable. (k) Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with Accounting Standards Codification (“ASC”) Topic 718, “Compensation – Stock Compensation” (“ASC718”) and ASC 505-50, Equity – Based Payments to Non-Employees. In addition to requiring supplemental disclosures, ASC 718 addresses the accounting for share-based payment transactions in which a company receives goods or services in exchange for (a) equity instruments of the company or (b) liabilities that are based on the fair value of the company’s equity instruments or that may be settled by the issuance of such equity instruments. ASC 718 focuses primarily on accounting for transactions in which a company obtains employee services in share-based payment transactions. In accordance with ASC 505-50, the Company determines the fair value of the stock based payment as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either (1) the date at which a commitment for performance by the counterparty to earn the equity instrument is reached, or (2) the date at which the counterparty’s performance is complete. Options and warrants The fair value of stock options and warrants is estimated on the measurement date using the Black-Scholes model with the following assumptions, which are determined at the beginning of each year and utilized in all calculations for that year: Risk-Free Interest Rate. We utilized the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected term of our awards. Expected Volatility. We calculate the expected volatility based on a volatility index of peer companies as we did not have sufficient historical market information to estimate the volatility of our own stock. Dividend Yield. We have not declared a dividend on its common stock since its inception and have no intentions of declaring a dividend in the foreseeable future and therefore used a dividend yield of zero. Expected Term. The expected term of options granted represents the period of time that options are expected to be outstanding. We estimated the expected term of stock options by using the simplified method. For warrants, the expected term represents the actual term of the warrant. Forfeitures. Estimates of option forfeitures are based on our experience. We will adjust our estimate of forfeitures over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of compensation expense to be recognized in future periods. (l) Advertising Advertising costs are expensed as incurred and amounted to $21,510 and $4,750 for the six months ended June 30, 2017 and 2016, respectively. (m) Research and Development Research and development costs are expensed as incurred. (n) Income Taxes Income taxes are accounted for under the assets and liability method. Current income taxes are provided in accordance with the laws of the respective taxing authorities. Deferred income taxes are provided for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is not more likely than not that some portion or all of the deferred tax assets will be realized. The Company has adopted the provisions required by the Income Taxes topic of the FASB Accounting Standards Codification. The Codification Topic requires the recognition of potential liabilities as a result of management’s acceptance of potentially uncertain positions for income tax treatment on a “more-likely-than-not” probability of an assessment upon examination by a respective taxing authority. The Company believes that it has not taken any uncertain tax positions and thus has not recorded any liability. (o) Net Income (Loss) per Common Share Basic net income (loss) per common share is computed on the basis of the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed on the basis of the weighted average number of common shares and dilutive securities (such as stock options and convertible securities) outstanding. Dilutive securities having an anti-dilutive effect on diluted net income (loss) per share are excluded from the calculation. For the three and six months ended June 30, 2016, the diluted net loss per share calculation excluded the effect of convertible notes payable, Series A preferred stock and stock options outstanding (see Note7,8 and 10). (p) Recent Accounting Pronouncements Certain accounting pronouncements have been issued by the FASB and other standard setting organizations which are not yet effective and therefore have not yet been adopted by the Company. These include: In August 2014, the FASB issued ASU 2014-15 “Disclosure about an Entity’s Ability to Continue as a Going Concern”. The update establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern including related disclosures. In 2016, the FASB issued ASU 2016-2 (topic 842) which establishes a new lease accounting model for lessees. Under the new guidance, lessees will be required to recognize right of use assets and liabilities for most leases having terms of 12 months or more. The impact on the Company’s financial statements has not yet been determined. (q) Reclassifications Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current year presentation. These reclassification adjustments had no effect on the Company's previously reported net income.

Note 5 - Note Receivable

Note 5 - Note Receivable	6 Months Ended
	Jun. 30, 2017
Notes
Note 5 - Note Receivable	NOTE 5 – Note Receivable At June 30, 2017 and December 31, 2016, the $39,000 note receivable bears interest at a rate of 3% per annum and is due November 30, 2020. The receivable arose from the Company’s sale of its 50% interest in Stock Market Manager, Inc. to Endeavour Cooperative Partners, LLC (“Endeavour”) on November 30, 2015. Endeavour is affiliated with Carl Dilley, a Company director.

Note 6 - Intangible Assets, Net

Note 6 - Intangible Assets, Net	6 Months Ended
	Jun. 30, 2017
Notes
Note 6 - Intangible Assets, Net	NOTE 6 – Intangible Assets, Net Intangible assets, net, consist of: June 30, 2017 December 31, 2016 Video conferencing software acquired by Prosperity in December 2009 $ 30,000 $ 30,000 Enterprise and audit software acquired by Prosperity in April 2008 20,000 20,000 Patent costs incurred by WRAP 6,880 6,880 Other 3,548 3,548 Total 60,428 60,428 Accumulated amortization (36,933) (34,947) Net $ 23,495 $ 25,481 Expected future amortization expense for intangible assets as of June 30, 2017 follows: Amount Year Ending December 31, 2017 $ 1,988 Year Ending December 31, 2018 3,975 Year Ending December 31, 2019 3,975 Year Ending December 31, 2020 3,975 Year Ending December 31, 2021 3,975 Thereafter 5,607 Total $ 23,495

Note 7 - Notes and Loans Payabl

Note 7 - Notes and Loans Payable	6 Months Ended
	Jun. 30, 2017
Notes
Note 7 - Notes and Loans Payable	NOTE 7 – Notes and Loans Payable Notes and loans payable consist of: June 30, 2017 December 31, 2016 Convertible note payable to lender dated February 1, 2016 (as amended December 21, 2016), interest at 12% per annum, due February 1, 2017, convertible into Common Stock at a Conversion Price equal to the Lesser of (i) $0.01 per share or (ii) 50% of the lowest Bid Price of the Common Stock for the 30 Trading Days preceding the Conversion Date –fully converted at February 13, 2017 $ - $ 3,571 Convertible notes payable to lender dated from March 15, 2016 (as amended June 2, 2016) to February 27, 2017, interest at rates ranging from 12% to 14.99% per annum, due from April 6, 2017 to October 7, 2017, partially converted at March 22, 2017 and the remaining notes convertible into Common Stock at a Conversion Price equal to the lesser of (i) $0.01 per share or (ii) 50% of the lowest Closing Bid Price of the Common Stock for the 30 Trading Days preceding the Conversion Date – net of unamortized debt discount of $2,573 and $34,411, respectively 32,677 39,839 Convertible notes payable to lender dated February 1, 2016 (as amended December 21, 2016) and December 21, 2016, interest at 12% per annum, due February 1, 2017 and May 20, 2017, convertible into Common Stock at a Conversion Price equal to the lesser of (i) $0.01 per share or (ii) 50% of the lowest Closing Bid Price of the Common Stock for the 30 Trading Days preceding the Conversion Date – net of unamortized debt discount of $0 and $58,095 65,000 6,905 Convertible notes payable to Pasquale and Rosemary Ferro dated from March 16, 2017 to June 8, 2017, interest at rates ranging from 12% to 14.99% per annum, due from September 16, 2017 to May 7, 2018, convertible into Common Stock at a Conversion Price equal to the lesser of (i) $0.01 per share or (ii) 50% of the lowest Closing Bid Price of the Common Stock for the 30 Trading Days preceding the Conversion Date – net of unamortized debt discount of $72,257 and $0 40,743 - Note payable to the brother of Marco Alfonsi, Chief Executive Officer of the Company, interest at 10% per annum, due August 22, 2016 (now past due) 5,000 5,000 Loan payable to Mckenzie Webster Limited (“MWL”), an entity controlled by the Chairman of the Board of Directors of the Company, non-interest bearing, due on demand 3,000 3,000 Total $ 146,420 $ 58,315 The derivative liability of the convertible notes payable at June 30, 2017 consisted of: Face Value Derivative Liability Convertible notes payable to lender dated from March 15, 2016 (as amended June 2, 2016) to February 27, 2017, due from April 6, 2017 to July 28, 2017 $ 35,250 $ 82,863 Convertible notes payable to lender dated February 1, 2016 (as amended December 21, 2016) and December 21, 2016, due February 1, 2017 and May 20, 2017 65,000 151,667 Convertible notes payable to Pasquale and Rosemary Ferro dated from March 16, 2017 to June 8, 2017, due from September 16, 2017 to May 7, 2018 113,000 295,813 Totals $ 213,250 530,343 The above convertible notes contain a variable conversion feature based on the future trading price of the Company common stock. Therefore, the number of shares of common stock issuable upon conversion of the notes is indeterminate. Accordingly, we have recorded the fair value of the embedded conversion features as a derivative liability at the respective issuance dates (or amendment dates) of the notes ($267,660 total for the six months ended June 30, 2017) and charged the applicable amounts to debt discounts ($124,000 total for the six months ended June 30, 2017) and the remainder to other expense ($143,660 total for the six months ended June 30, 2017). The increase (decrease) in the fair value of the derivative liability from the respective issuance dates (or amendment dates) of the notes to the measurement date ($58,143 total increase for the six months ended June 30, 2017) is charged (credited) to other expense (income). The fair value of the derivative liability of the notes is measured at the respective issuance dates and quarterly thereafter using the Black Scholes option pricing model. Assumptions used for the calculations of the derivative liability of the notes at June 30, 2017 include (1) stock price of $0.025 per share, (2) exercise price of $0.0075 per share, (3) terms ranging from 0 days to 311 days, (4) expected volatility of 267% and (5) risk free interest rates ranging from 0.00% to 1.21%.

Note 8 - Preferred Stock

Note 8 - Preferred Stock	6 Months Ended
	Jun. 30, 2017
Notes
Note 8 - Preferred Stock	NOTE 8 – Preferred Stock The Company issued a total of 10 shares of WRAP Series A Preferred Stock (5 shares to MWL and 5 shares to Marco Alfonsi) in exchange for the retirement of a total of 100,000,000 shares of WRAP common stock (50,000,000 shares from MWL and 50,000,000 shares from Marco Alfonsi). Each share of Series A Preferred Stock is convertible into 10,000,000 shares of WRAP common stock and is entitled to 20,000,000 votes.

Note 9 - Common Stock

Note 9 - Common Stock	6 Months Ended
	Jun. 30, 2017
Notes
Note 9 - Common Stock	NOTE 9 – Common Stock On January 2, 2016, the Company issued 104,500 shares of WRAP common stock to a technical consultant in satisfaction of a $12,864 account payable to that vendor. On March 9, 2016, the Company issued 140,000 shares of WRAP common stock to a technical consultant in satisfaction of a $8,693 account payable to that vendor. On October 6, 2016, the Company issued 400,000 shares of WRAP common stock to a technical consultant in satisfaction of a $25,617 account payable to that vendor. On February 2, 2017, the Company issued 200,000 shares of WRAP common stock to a financial consultant for services rendered. The $11,000 fair value of the 200,000 shares of WRAP common stock was charged to consulting fees in the three months ended March 31, 2017. On February 13, 2017, the Company issued 1,685,900 shares of WRAP common stock to the brother of the Chief Executive Officer of the Company in satisfaction of notes payable of $15,000 and accrued interest payable of $1,859. On March 22, 2017, the Company issued 6,785,316 shares of WRAP common stock to a lender in satisfaction of notes payable of $50,000 and accrued interest payable of $5,979. On April 17, 2017, the Company issued 5,000,000 shares of WRAP common stock to a consultant for services rendered. The $103,500 fair value of the 5,000,000 shares of WRAP common stock will be charged to consulting fees in the three months ended June 30, 2017. On June 21, 2017, the Company issued 250,000 shares of WRAP common stock to a consultant for services rendered. The $5,975 fair value of the 250,000 shares of WRAP common stock will be charged to consulting fees in the three months ended June 30, 2017. On June 28, 2017, the Company issued 250,000 shares of WRAP common stock to a consultant for services rendered. The $5,000 fair value of the 250,000 shares of WRAP common stock will be charged to consulting fees in the three months ended June 30, 2017.

Note 10 - Stock Options and War

Note 10 - Stock Options and Warrants	6 Months Ended
	Jun. 30, 2017
Notes
Note 10 - Stock Options and Warrants	NOTE 10 – Stock Options and Warrants A summary of stock options and warrants activity follows: Shares of Common Stock Exercisable Into Stock Options Warrants Total Balance, December 31, 2015 200,000 307,500 507,500 Granted in 2016 - - - Expired in 2016 (150,000) (60,000) (210,000) Balance, December 31, 2016 50,000 247,500 297,500 Granted in 1Q and 2Q 2017 - - - Cancelled in 1Q and 2Q 2017 - - - Balance, June 30, 2017 50,000 247,500 297,500 Issued and outstanding stock options as of June 30, 2017 consist of: Year Number Outstanding Exercise Year of Granted And Exercisable Price Expiration 2009 50,000 $ 1.00 2019 Total 50,000 Issued and outstanding warrants as of June 30, 2017 consist of: Year Number Outstanding Exercise Year of Granted And Exercisable Price Expiration 2010 247,500 $ 1.00 2020 Total 247,500

Note 11 - Income Taxes

Note 11 - Income Taxes	6 Months Ended
	Jun. 30, 2017
Notes
Note 11 - Income Taxes	NOTE 11 – Income Taxes No provisions for income taxes were recorded for the periods presented since the Company incurred net losses in those periods. The provisions for (benefits from) income taxes differ from the amounts determined by applying the U.S. Federal income tax rate of 35% to pretax income (loss) as follows: Six Months Ended March 31, 2017 2016 Expected income tax (benefit) at 35% $ (169,522) $ (50,614) Non-deductible stock-based compensation 13,030 10,500 Non-deductible amortization of debt discounts 53,587 - Non-taxable (income) from derivative liability 18,779 - Increase in deferred income tax assets valuation allowance 84,126 40,114 Provision for (benefit from) income taxes $ - $ - Deferred income tax assets consist of: March 31, 2017 December 31, 2016 Net operating loss carryforward 1,304,605 1,220,479 Valuation allowance (1,304,605) (1,220,479) Net $ - $ - Based on management's present assessment, the Company has not yet determined it to be more likely than not that a deferred income tax asset of $1,304,605 attributable to the future utilization of the $3,716,863 net operating loss carryforward as of June 30, 2017 will be realized. Accordingly, the Company has maintained a 100% allowance against the deferred income tax asset in the consolidated financial statements at June 30, 2017. The Company will continue to review this valuation allowance and make adjustments as appropriate. The net operating loss carryforward expires in years 2025, 2026, 2027, 2028, 2029, 2030, 2031, 2032, 2033, 2034, 2035, 2036, and 2037 in the amount of $1,369, $518,390, $594,905, $686,775, $159,141, $151,874, $135,096, $166,911, $311,890, $25,511, $338,345, $386,297, and $240,359, respectively. Current tax laws limit the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore, the amount available to offset future taxable income may be limited. The Company's U.S. Federal and state income tax returns prior to 2013 are closed and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings. The statute of limitations on the 2012 tax year returns expired in March 2016. The Company recognizes interest and penalties associated with uncertain tax positions as part of the income tax provision and would include accrued interest and penalties with the related tax liability in the consolidated balance sheets. There were no interest or penalties paid during 2017 and 2016.

Note 12 - Commitments and Conti

Note 12 - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Notes
Note 12 - Commitments and Contingencies	NOTE 12 – Commitments and Contingencies Employment Agreements On May 14, 2015, the Company executed an Executive Employment Agreement with Marco Alfonsi (“Alfonsi”) for Alfonsi to serve as the Company's chief executive officer for cash compensation of $5,000 per month (increased to $6,000 per month in August 2015). Pursuant to the agreement, the Company issued 10,000,000 restricted shares of WRAP common stock to Alfonsi on June 14, 2015. Alfonsi may terminate his employment upon 30 days written notice to the Company. The Company may terminate Alfonsi's employment upon written notice to Alfonsi by a vote of the Board of Directors. On August 17, 2015, the Company executed an Employment Agreement with Romuald Stone ("Stone") for Stone to serve as the Company's Chief Technology Officer for cash compensation of $12,500 per month. Effective August 17, 2016, the agreement terminated. Lease Agreements On December 1, 2014, Prosperity entered into a lease agreement with KLAM, Inc. for office space in Hicksville, New York for an initial term of one year commencing December 1, 2014. The lease provides for monthly rentals of $2,500 and provides Prosperity an option to renew the lease after the initial term. The Company has continued to occupy this space after November 30, 2015 under a month to month arrangement at $2,500 per month. KLAM, Inc. is controlled by the wife of the Company's chief executive officer Marco Alfonsi. On September 11, 2015, the Company executed a lease agreement with an unrelated third party for office space in Hicksville, New York for a term of 37 months. The lease provides for monthly rentals of $2,922 for lease year 1, $3,009 for lease year 2, and $3,100 for lease year 3. The lease also provides for additional rent based on increases in base year operating expenses and real estate taxes. Rent expense was $32,530 for each of the six months ended June 30, 2017 and 2016. At June 30, 2017, the future minimum lease payments under non-cancellable operating leases were: Year ending December 31, 2017 18,418 Year ending December 31, 2018 27,900 Total $ 46,318 Major Customers For the six months ended June 30, 2017, two customers accounted for approximately 47% and 31%, respectively, of total service revenues. For the six months ended June 30, 2016, three customers accounted for approximately 37%, 30%, and 20%, respectively, of total service revenues. Public Offering of Units On August 2, 2016, the Company’s Registration Statement on Form S-1 was declared effective by the Securities and Exchange Commission. On a self-underwritten basis, the Company was offering up to 40,000,000 Units at a price of $0.05 per Unit or $2,000,000 maximum. Each Unit consisted one share of Company common stock and one warrant to purchase ½ share of Company common stock of a price of $0.10 per share for a period of three years. There was no minimum offering amount or escrow required as a condition to closing. On May 5, 2017, the Company terminated the Registration Statement; no units were sold in the offering. Litigation On November 25, 2016, the landlord under the lease agreement dated September 11, 2015 (“QPR”) served us a Notice of Default. On December 5, 2016, QPR filed a Petition to Recover Possession of Real Property seeking unpaid rent of $12,540 (as of November 21, 2016) and possession of the premises. The Company subsequently paid QPR and QPR dismissed the action.

Note 13 - Related Party Transac

Note 13 - Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Notes
Note 13 - Related Party Transactions	NOTE 13 – Related Party Transactions ProAdvanced Group, Inc. (“PAG”), an entity controlled by the Company’s chief executive officer, is a customer of WRAP. At June 30, 2017, WRAP had an account receivable from PAG of $1,190. Island Stock Transfer (“IST”), an entity controlled by Carl Dilley, a Company director, is both a customer and vendor of WRAP. As of June 30, 2017, WRAP had an account receivable from IST of $2,000 and an account payable to IST of $2,005. For the six months ended June 30, 2017, WRAP had revenues from IST of $2,000. Stock Market Manager, Inc. (see Note 5) is also an entity controlled by Mr. Dilley. At June 30, 2017, WRAP had an account payable to Stock Market Manager Inc. of $2,000.

Note 14 - Subsequent Events

Note 14 - Subsequent Events	6 Months Ended
	Jun. 30, 2017
Notes
Note 14 - Subsequent Events	NOTE 14 – Subsequent Events On July 5, 2017, August 2, 2017 and August 16, 2017, the Company issued three Convertible Promissory Notes of $10,000, $5,000 and $3,000 to a lender for loan proceeds of $10,000, $5,000 and $3,000, respectively. The notes bear interest at a rate of 12% per annum, are due on May 7, 2018, and are convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to the lesser of (i) $0.01 per share or (ii) 50% of the lowest Closing Bid Price of the Common Stock for the 30 Trading Days preceding the Conversion Date. On August 8, 2017, August 9, 2017 and August 16, 2017, the Company issued three Convertible Promissory Notes of $10,000, $10,000 and $5,000 to a lender for loan proceeds of $10,000, $10,000 and $5,000, respectively. The notes bear interest at a rate of 12% per annum, are due on August 8, 2018, and are convertible at the option of the lender into shares of the Company common stock at a Conversion Price equal to the lesser of (i) $0.01 per share or (ii) 50% of the lowest Closing Bid Price of the Common Stock for the 30 Trading Days preceding the Conversion Date. In accordance with FASB ASC 855, Subsequent Events, the Company has evaluated subsequent events through August 21, 2017, the date on which these consolidated financial statements were available to be issued. Except as disclosed above, there were no material subsequent events that required recognition or additional disclosure in these consolidated financial statements.

Note 4 - Summary of Significa20

Note 4 - Summary of Significant Accounting Policies: (a) Principles of Consolidation (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(a) Principles of Consolidation	(a) Principles of Consolidation The consolidated financial statements include the accounts of WRAP and its wholly owned subsidiary Prosperity from the date of its acquisition on January 5, 2015. All intercompany balances and transactions have been eliminated in consolidation.

Note 4 - Summary of Significa21

Note 4 - Summary of Significant Accounting Policies: (b) Use of Estimates (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(b) Use of Estimates	(b) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.

Note 4 - Summary of Significa22

Note 4 - Summary of Significant Accounting Policies: (c) Fair Value of Financial Instruments (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(c) Fair Value of Financial Instruments	(c) Fair Value of Financial Instruments The Company’s financial instruments consist of cash and cash equivalents, accounts receivable, note receivable, notes and loans payable, accounts payable, and accrued expenses payable. Except for the note receivable, the fair value of these financial instruments approximate their carrying amounts reported in the consolidated balance sheets due to the short term maturity of these instruments. Based on comparable instruments with similar terms, the fair value of the note receivable approximates its carrying value. Pursuant to ASC 820, Fair Value Measurements and Disclosures, an entity is required to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: Level 1 - applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. Level 2 - applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. Level 3 - applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Note 4 - Summary of Significa23

Note 4 - Summary of Significant Accounting Policies: (d) Cash and Cash Equivalents (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(d) Cash and Cash Equivalents	(d) Cash and Cash Equivalents The Company considers all liquid investments purchased with a maturity of three months or less to be cash equivalents.

Note 4 - Summary of Significa24

Note 4 - Summary of Significant Accounting Policies: (e) Inventory (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(e) Inventory	(e) Inventory All inventories are finished goods, and stated at the lower of cost or market. Cost is principally determined using the first-in, first-out (FIFO) method.

Note 4 - Summary of Significa25

Note 4 - Summary of Significant Accounting Policies: (f) Property and Equipment, Net (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(f) Property and Equipment, Net	(f) Property and Equipment, Net Property and equipment, net, is stated at cost less accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. Maintenance and repairs are charged to operations as incurred.

Note 4 - Summary of Significa26

Note 4 - Summary of Significant Accounting Policies: (g) Intangible Assets, Net (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(g) Intangible Assets, Net	(g) Intangible Assets, Net Intangible assets, net, are stated at cost less accumulated amortization. Amortization is calculated using the straight-line method over the estimated economic lives of the respective assets.

Note 4 - Summary of Significa27

Note 4 - Summary of Significant Accounting Policies: (h) Goodwill and Intangible Assets With Indefinite Lives (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(h) Goodwill and Intangible Assets With Indefinite Lives	(h) Goodwill and Intangible Assets with Indefinite Lives The Company does not amortize goodwill and intangible assets with indefinite useful lives, but instead tests for impairment at least annually. When conducting the annual impairment test for goodwill, the Company compares the estimated fair value of a reporting unit containing goodwill to its carrying value. If the estimated fair value of the reporting unit is determined to be less than its carrying value, goodwill is reduced and an impairment loss is recorded.

Note 4 - Summary of Significa28

Note 4 - Summary of Significant Accounting Policies: (i) Long-lived Assets (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(i) Long-lived Assets	(i) Long-lived Assets The Company reviews long-lived assets held and used, intangible assets with finite useful lives and assets held for sale for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If an evaluation of recoverability is required, the estimated undiscounted future cash flows associated with the asset is compared to the asset’s carrying amount to determine if a write-down is required. If the undiscounted cash flows are less than the carrying amount, an impairment loss is recorded to the extent that the carrying amount exceeds the fair value.

Note 4 - Summary of Significa29

Note 4 - Summary of Significant Accounting Policies: (j) Revenue Recognition (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(j) Revenue Recognition	(j) Revenue Recognition The Company recognizes revenue over agreed periods of services delivered to customers, provided there are no uncertainties regarding customer acceptance, persuasive evidence of an arrangement exists; the sales price is fixed or determinable; and collectability is deemed probable.

Note 4 - Summary of Significa30

Note 4 - Summary of Significant Accounting Policies: (k) Stock-based Compensation (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(k) Stock-based Compensation	(k) Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with Accounting Standards Codification (“ASC”) Topic 718, “Compensation – Stock Compensation” (“ASC718”) and ASC 505-50, Equity – Based Payments to Non-Employees. In addition to requiring supplemental disclosures, ASC 718 addresses the accounting for share-based payment transactions in which a company receives goods or services in exchange for (a) equity instruments of the company or (b) liabilities that are based on the fair value of the company’s equity instruments or that may be settled by the issuance of such equity instruments. ASC 718 focuses primarily on accounting for transactions in which a company obtains employee services in share-based payment transactions. In accordance with ASC 505-50, the Company determines the fair value of the stock based payment as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either (1) the date at which a commitment for performance by the counterparty to earn the equity instrument is reached, or (2) the date at which the counterparty’s performance is complete. Options and warrants The fair value of stock options and warrants is estimated on the measurement date using the Black-Scholes model with the following assumptions, which are determined at the beginning of each year and utilized in all calculations for that year: Risk-Free Interest Rate. We utilized the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected term of our awards. Expected Volatility. We calculate the expected volatility based on a volatility index of peer companies as we did not have sufficient historical market information to estimate the volatility of our own stock. Dividend Yield. We have not declared a dividend on its common stock since its inception and have no intentions of declaring a dividend in the foreseeable future and therefore used a dividend yield of zero. Expected Term. The expected term of options granted represents the period of time that options are expected to be outstanding. We estimated the expected term of stock options by using the simplified method. For warrants, the expected term represents the actual term of the warrant. Forfeitures. Estimates of option forfeitures are based on our experience. We will adjust our estimate of forfeitures over the requisite service period based on the extent to which actual forfeitures differ, or are expected to differ, from such estimates. Changes in estimated forfeitures will be recognized through a cumulative catch-up adjustment in the period of change and will also impact the amount of compensation expense to be recognized in future periods.

Note 4 - Summary of Significa31

Note 4 - Summary of Significant Accounting Policies: (l) Advertising (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(l) Advertising	(l) Advertising Advertising costs are expensed as incurred and amounted to $21,510 and $4,750 for the six months ended June 30, 2017 and 2016, respectively.

Note 4 - Summary of Significa32

Note 4 - Summary of Significant Accounting Policies: (m) Research and Development (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(m) Research and Development	(m) Research and Development Research and development costs are expensed as incurred.

Note 4 - Summary of Significa33

Note 4 - Summary of Significant Accounting Policies: (n) Income Taxes (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(n) Income Taxes	(n) Income Taxes Income taxes are accounted for under the assets and liability method. Current income taxes are provided in accordance with the laws of the respective taxing authorities. Deferred income taxes are provided for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is not more likely than not that some portion or all of the deferred tax assets will be realized. The Company has adopted the provisions required by the Income Taxes topic of the FASB Accounting Standards Codification. The Codification Topic requires the recognition of potential liabilities as a result of management’s acceptance of potentially uncertain positions for income tax treatment on a “more-likely-than-not” probability of an assessment upon examination by a respective taxing authority. The Company believes that it has not taken any uncertain tax positions and thus has not recorded any liability.

Note 4 - Summary of Significa34

Note 4 - Summary of Significant Accounting Policies: (o) Net Income (loss) Per Common Share (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(o) Net Income (loss) Per Common Share	(o) Net Income (Loss) per Common Share Basic net income (loss) per common share is computed on the basis of the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is computed on the basis of the weighted average number of common shares and dilutive securities (such as stock options and convertible securities) outstanding. Dilutive securities having an anti-dilutive effect on diluted net income (loss) per share are excluded from the calculation. For the three and six months ended June 30, 2016, the diluted net loss per share calculation excluded the effect of convertible notes payable, Series A preferred stock and stock options outstanding (see Note7,8 and 10).

Note 4 - Summary of Significa35

Note 4 - Summary of Significant Accounting Policies: (p) Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(p) Recent Accounting Pronouncements	(p) Recent Accounting Pronouncements Certain accounting pronouncements have been issued by the FASB and other standard setting organizations which are not yet effective and therefore have not yet been adopted by the Company. These include: In August 2014, the FASB issued ASU 2014-15 “Disclosure about an Entity’s Ability to Continue as a Going Concern”. The update establishes management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern including related disclosures. In 2016, the FASB issued ASU 2016-2 (topic 842) which establishes a new lease accounting model for lessees. Under the new guidance, lessees will be required to recognize right of use assets and liabilities for most leases having terms of 12 months or more. The impact on the Company’s financial statements has not yet been determined.

Note 4 - Summary of Significa36

Note 4 - Summary of Significant Accounting Policies: (q) Reclassifications (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
(q) Reclassifications	(q) Reclassifications Certain amounts in the prior period consolidated financial statements have been reclassified to conform to the current year presentation. These reclassification adjustments had no effect on the Company's previously reported net income.

Note 6 - Intangible Assets, N37

Note 6 - Intangible Assets, Net: Schedule of Intangible Assets and Goodwill (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Intangible Assets and Goodwill	June 30, 2017 December 31, 2016 Video conferencing software acquired by Prosperity in December 2009 $ 30,000 $ 30,000 Enterprise and audit software acquired by Prosperity in April 2008 20,000 20,000 Patent costs incurred by WRAP 6,880 6,880 Other 3,548 3,548 Total 60,428 60,428 Accumulated amortization (36,933) (34,947) Net $ 23,495 $ 25,481

Note 6 - Intangible Assets, N38

Note 6 - Intangible Assets, Net: Schedule of Expected Amortization Text Block (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Expected Amortization Text Block	Amount Year Ending December 31, 2017 $ 1,988 Year Ending December 31, 2018 3,975 Year Ending December 31, 2019 3,975 Year Ending December 31, 2020 3,975 Year Ending December 31, 2021 3,975 Thereafter 5,607 Total $ 23,495

Note 7 - Notes and Loans Paya39

Note 7 - Notes and Loans Payable: Schedule of Notes and Loans Payable Text Block (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Notes and Loans Payable Text Block	Notes and loans payable consist of: June 30, 2017 December 31, 2016 Convertible note payable to lender dated February 1, 2016 (as amended December 21, 2016), interest at 12% per annum, due February 1, 2017, convertible into Common Stock at a Conversion Price equal to the Lesser of (i) $0.01 per share or (ii) 50% of the lowest Bid Price of the Common Stock for the 30 Trading Days preceding the Conversion Date –fully converted at February 13, 2017 $ - $ 3,571 Convertible notes payable to lender dated from March 15, 2016 (as amended June 2, 2016) to February 27, 2017, interest at rates ranging from 12% to 14.99% per annum, due from April 6, 2017 to October 7, 2017, partially converted at March 22, 2017 and the remaining notes convertible into Common Stock at a Conversion Price equal to the lesser of (i) $0.01 per share or (ii) 50% of the lowest Closing Bid Price of the Common Stock for the 30 Trading Days preceding the Conversion Date – net of unamortized debt discount of $2,573 and $34,411, respectively 32,677 39,839 Convertible notes payable to lender dated February 1, 2016 (as amended December 21, 2016) and December 21, 2016, interest at 12% per annum, due February 1, 2017 and May 20, 2017, convertible into Common Stock at a Conversion Price equal to the lesser of (i) $0.01 per share or (ii) 50% of the lowest Closing Bid Price of the Common Stock for the 30 Trading Days preceding the Conversion Date – net of unamortized debt discount of $0 and $58,095 65,000 6,905 Convertible notes payable to Pasquale and Rosemary Ferro dated from March 16, 2017 to June 8, 2017, interest at rates ranging from 12% to 14.99% per annum, due from September 16, 2017 to May 7, 2018, convertible into Common Stock at a Conversion Price equal to the lesser of (i) $0.01 per share or (ii) 50% of the lowest Closing Bid Price of the Common Stock for the 30 Trading Days preceding the Conversion Date – net of unamortized debt discount of $72,257 and $0 40,743 - Note payable to the brother of Marco Alfonsi, Chief Executive Officer of the Company, interest at 10% per annum, due August 22, 2016 (now past due) 5,000 5,000 Loan payable to Mckenzie Webster Limited (“MWL”), an entity controlled by the Chairman of the Board of Directors of the Company, non-interest bearing, due on demand 3,000 3,000 Total $ 146,420 $ 58,315

Note 10 - Stock Options and W40

Note 10 - Stock Options and Warrants: Schedule of Stockholders Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Stockholders Equity	Shares of Common Stock Exercisable Into Stock Options Warrants Total Balance, December 31, 2015 200,000 307,500 507,500 Granted in 2016 - - - Expired in 2016 (150,000) (60,000) (210,000) Balance, December 31, 2016 50,000 247,500 297,500 Granted in 1Q and 2Q 2017 - - - Cancelled in 1Q and 2Q 2017 - - - Balance, June 30, 2017 50,000 247,500 297,500

Note 10 - Stock Options and W41

Note 10 - Stock Options and Warrants: Schedule of Issued and Outstanding Stock Options Text Block (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Issued and Outstanding Stock Options Text Block	Year Number Outstanding Exercise Year of Granted And Exercisable Price Expiration 2009 50,000 $ 1.00 2019 Total 50,000

Note 10 - Stock Options and W42

Note 10 - Stock Options and Warrants: Schedule of Issued and Outstanding Warrants Text Block (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Issued and Outstanding Warrants Text Block	Year Number Outstanding Exercise Year of Granted And Exercisable Price Expiration 2010 247,500 $ 1.00 2020 Total 247,500

Note 11 - Income Taxes_ Schedul

Note 11 - Income Taxes: Schedule of Share-based Compensation, Activity (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Share-based Compensation, Activity	Six Months Ended March 31, 2017 2016 Expected income tax (benefit) at 35% $ (169,522) $ (50,614) Non-deductible stock-based compensation 13,030 10,500 Non-deductible amortization of debt discounts 53,587 - Non-taxable (income) from derivative liability 18,779 - Increase in deferred income tax assets valuation allowance 84,126 40,114 Provision for (benefit from) income taxes $ - $ -

Note 11 - Income Taxes_ Sched44

Note 11 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Deferred Tax Assets and Liabilities	March 31, 2017 December 31, 2016 Net operating loss carryforward 1,304,605 1,220,479 Valuation allowance (1,304,605) (1,220,479) Net $ - $ -

Note 2 - Going Concern Uncert45

Note 2 - Going Concern Uncertainty (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Details
Cash Equivalents, at Carrying Value	$ 257
Working Capital	887,567
Net income (loss)	$ 484,348	$ 230,907

Note 4 - Summary of Significa46

Note 4 - Summary of Significant Accounting Policies: (l) Advertising (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016
Details
Advertising expense	$ 20,893	$ 21,510	$ 4,750

Note 6 - Intangible Assets, N47

Note 6 - Intangible Assets, Net: Schedule of Intangible Assets and Goodwill (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Finite-Lived Patents, Gross	$ 6,880	$ 6,880
Other Finite-Lived Intangible Assets, Gross	3,548	3,548
Total Intangible Assets net	60,428	60,428
Accumulated Amortization of Intangible Assets	(36,933)	(34,947)
Intangible Assets net	23,495	25,481
Video Conferencing Software
Capitalized Computer Software, Gross	30,000	30,000
Enterprise and Audit Software
Capitalized Computer Software, Gross	$ 20,000	$ 20,000

Note 6 - Intangible Assets, N48

Note 6 - Intangible Assets, Net: Schedule of Expected Amortization Text Block (Details) - USD ($)	Jun. 30, 2017	Mar. 31, 2017
2,017
Expected Future Amortization Expense	$ 1,988
2,018
Expected Future Amortization Expense	3,975
2,019
Expected Future Amortization Expense	3,975
2,020
Expected Future Amortization Expense		$ 3,975
2,021
Expected Future Amortization Expense	3,975
Thereafter
Expected Future Amortization Expense	5,607
Total
Expected Future Amortization Expense	$ 23,495

Note 7 - Notes and Loans Paya49

Note 7 - Notes and Loans Payable: Schedule of Notes and Loans Payable Text Block (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Notes payable dated February 1, 2016, interest at 12% per annum, due February 1, 2017
Notes Payable		$ 3,571
Notes payable dated March 15, 2016, interest at 14.99% per annum, due April 6, 2017
Notes Payable	$ 32,677	39,839
Convertible Notes Payable to Lender dated February 1, 2016 and December 21, 2016, interest at 12% per annum, due February 1, 2017 and May 20, 2017
Notes Payable	65,000	6,905
Notes payable to Pasquale and Rosemary Ferro, interest at 14.99% per annum, due September 16, 2017
Notes Payable	40,743
Convertible note payable to brother of Marco Alfonsi, Chief Executive Officer of the Company, interest at 10% per annum, due August 22, 2016
Notes Payable	5,000	5,000
Loan payable to Mckenzie Webster Limited ("MWL"), an entity controlled by the Chairman of the Board of Directors of the Company, non-interest bearing, due on demand
Notes Payable	3,000	3,000
Total
Notes Payable	$ 146,420	$ 58,315

Note 7 - Notes and Loans Paya50

Note 7 - Notes and Loans Payable (Details)	Jun. 30, 2017USD ($)
Convertible Note Payable to Lender dated March 15, 2016 | Face Value
Derivative Liability of Convertible Note	$ 35,250
Convertible Note Payable to Lender dated March 15, 2016 | Derivative Liability
Derivative Liability of Convertible Note	82,863
Convertible Note Payable to Lender dated February 1, 2016 | Face Value
Derivative Liability of Convertible Note	65,000
Convertible Note Payable to Lender dated February 1, 2016 | Derivative Liability
Derivative Liability of Convertible Note	151,667
Convertible Note Payable to Pasquale and Rosemary Ferro Dated March 16, 2017 | Face Value
Derivative Liability of Convertible Note	113,000
Convertible Note Payable to Pasquale and Rosemary Ferro Dated March 16, 2017 | Derivative Liability
Derivative Liability of Convertible Note	295,813
Total | Face Value
Derivative Liability of Convertible Note	213,250
Total | Derivative Liability
Derivative Liability of Convertible Note	$ 530,343

Note 8 - Preferred Stock (Detai

Note 8 - Preferred Stock (Details) - shares	Jun. 30, 2017	Dec. 31, 2016	Oct. 29, 2015
Details
Preferred Stock, Shares Issued	10	10	10
Convertible Preferred Stock, Shares Issued upon Conversion			10,000,000

Note 9 - Common Stock (Details)

Note 9 - Common Stock (Details) - shares	Jun. 30, 2017	Jun. 28, 2017	Jun. 21, 2017	Apr. 17, 2017	Mar. 22, 2017	Feb. 13, 2017	Feb. 02, 2017	Dec. 31, 2016	Oct. 06, 2016	Mar. 09, 2016	Jan. 02, 2016
Common Stock, Shares Issued	160,179,466							146,008,250
Technical Consultant
Common Stock, Shares Issued									400,000	140,000	104,500
Financial Consultant
Common Stock, Shares Issued							200,000
Brother of Chief Executive Officer
Common Stock, Shares Issued						1,685,900
Lender
Common Stock, Shares Issued					6,785,316
Consultant
Common Stock, Shares Issued		250,000	250,000	5,000,000

Note 10 - Stock Options and W53

Note 10 - Stock Options and Warrants: Schedule of Stockholders Equity (Details) - shares	12 Months Ended
	Dec. 31, 2016	Jun. 30, 2017	Dec. 31, 2015
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	50,000	50,000	200,000
Share Based Compensation Arrangement by Share Based Payment Award Options, Cancelled	(150,000)
Warrants
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	247,500	247,500	307,500
Share Based Compensation Arrangement by Share Based Payment Award Options, Cancelled	(60,000)
Total
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number	297,500	297,500	507,500
Share Based Compensation Arrangement by Share Based Payment Award Options, Cancelled	(210,000)

Note 10 - Stock Options and W54

Note 10 - Stock Options and Warrants: Schedule of Issued and Outstanding Stock Options Text Block (Details)	6 Months Ended
	Jun. 30, 2017$ / sharesshares
2009 Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	50,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares	$ 1
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	2019 years
Total 2 Stock Options
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	50,000

Note 10 - Stock Options and W55

Note 10 - Stock Options and Warrants: Schedule of Issued and Outstanding Warrants Text Block (Details)	6 Months Ended
	Jun. 30, 2017$ / sharesshares
2010 Warrants
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	247,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares	$ 1
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	2020 years
Total Warrants
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number	247,500

Note 11 - Income Taxes_ Sched56

Note 11 - Income Taxes: Schedule of Share-based Compensation, Activity (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Details
Income Tax Expense (Benefit)	$ (169,522)	$ (50,614)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Amount	13,030	10,500
Non-deductible Amortization of Debt Discounts	53,587
Non-deductible Expense From Derivative Liability	18,779
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount	$ 84,126	$ 40,114

Note 11 - Income Taxes_ Sched57

Note 11 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Details
Operating Loss Carryforwards	$ 1,304,605	$ 1,220,479
Deferred Tax Assets, Valuation Allowance	$ (1,304,605)	$ (1,220,479)

Note 12 - Commitments and Con58

Note 12 - Commitments and Contingencies (Details) - USD ($)

3 Months Ended

6 Months Ended

12 Months Ended

Jun. 30, 2017

Jun. 30, 2016

Jun. 30, 2017

Jun. 30, 2016

Dec. 31, 2018

Sep. 14, 2018

Dec. 31, 2017

Sep. 14, 2017

Sep. 12, 2016

Dec. 02, 2015

Aug. 17, 2015

May 14, 2015

Rent expense

$ 16,265

$ 16,265

$ 32,530

$ 32,530

$ 27,900

$ 3,100

$ 18,418

$ 3,009

$ 2,922

$ 2,500

Marco Alfonsi

Employee Cash Compensation

$ 5,000

Romauld Stone

Employee Cash Compensation

$ 12,500