| Basis of Presentation and Summary of Significant Accounting Policies | NOTE 2 – BASIS OF PRESENTATION AND
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying condensed financial statements
have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”)
and the regulations of the United States Securities and Exchange Commission. The condensed consolidated financial statements and
accompanying notes are the representations of the Company’s management, who are responsible for their integrity and objectivity.
These condensed consolidated financial statements should be read in conjunction with a reading of the Company’s consolidated
financial statements and notes thereto included in Form 10-K filed with the SEC on March 13, 2018. Interim results of operations
for the nine months ended September 30, 2018 are not necessarily indicative of future results for the full year. Forward Stock Split On April 12, 2018, the Company amended its
Articles of Incorporation to forward split all outstanding shares of common stock such that all issued and outstanding shares of
Common Stock shall be automatically combined and reclassified such that each share of Pre-Forward Split Stock shall be combined
and reclassified into four shares of Common Stock. The number of shares for all periods presented has been retroactively restated
to reflect the forward split. Consolidation The consolidated financial statements include
the accounts of TraqIQ, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated
in consolidation. Use of Estimates The preparation of financial statements in
conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues
and expenses during the reporting periods. These estimates include, but are not limited to, management’s estimate of provisions
required for non-collectible accounts receivable, depreciative lives of our assets, determination of technological feasibility,
and valuation allowances of our deferred tax assets. Actual results could differ from those estimates. Reclassification Certain prior period amounts have been reclassified
to conform with current period presentation with no effect on the Company’s net loss, total assets, liabilities equity or
cash flows. Cash Cash and cash equivalents include cash on hand
and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days
or less. The Company has no cash equivalents as of September 30, 2018. Accounts Receivable and Concentration
of Credit Risk The Company considers accounts receivable,
net of allowance for returns and doubtful accounts, to be fully collectible. The allowance is based on management’s estimate
of the overall collectability of accounts receivable, considering historical losses and economic conditions. Based on these same
factors, individual accounts are charged off against the allowance when management determines those individual accounts are uncollectible.
Credit extended to customers is generally uncollateralized. Past-due status is based on contractual terms. Management has determined
that no allowance is required for the outstanding accounts receivable as of September 30, 2018. Revenue Recognition In May 2014, the FASB issued ASU No. 2014-09,
Revenue from Contracts with Customers (Topic 606). This standard provides a single set of guidelines for revenue recognition to
be used across all industries and requires additional disclosures. The updated guidance introduces a five-step model to achieve
its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that
reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company adopted
the updated guidance effective January 1, 2018 using the full retrospective method, however the new standard did not have a material
impact on its consolidated financial position and consolidated results of operations, as it did not change the manner or timing
of recognizing revenue. Trucking Revenue The Company’s contracts with customers
are generally on a purchase order basis, and represent single stand-alone performance obligations that are satisfied at a point
in time as defined in the new guidance. Accordingly, revenue for each contract is recognized when the Company’s performance
obligation is complete. Software Revenue Revenue from software license agreements is
recognized based on the Company’s satisfaction of distinct performance obligations identified in each agreement, generally
at a point in time as defined by Topic 606, as amended. In instances where multiple performance obligations are identified, the
Company allocates the transaction price to each performance obligation based on relative selling prices of each distinct product
or service, and recognizes revenue related to each performance obligation at the points in time that each performance obligation
is satisfied. The following is a summary of revenue for the
nine months ended September 30, 2018 and 2017, disaggregated by type:
2018 2017
Trucking Revenue $ 145,488 $ -
Software Revenue 47,194 18,759
$ 192,692 $ 18,759 Uncertain Tax Positions The Company follows ASC 740-10, “Accounting
for Uncertainty in Income Taxes”. This requires recognition and measurement of uncertain income tax positions using a “more-likely-than-not”
approach. Management evaluates their tax positions on an annual basis. The Company files income tax returns in the
U.S. federal tax jurisdiction and various state tax jurisdictions. The federal and state income tax returns of the Company are
subject to examination by the IRS and state taxing authorities, generally for three years after they were filed. Fair Value of Financial Instruments ASC 825, “ Financial Instruments Earnings
(Loss) Per Share of Common Stock Basic net income (loss) per common share is
computed using the weighted average number of common shares outstanding. Diluted earnings per share (EPS) include additional dilution
from common stock equivalents, such as convertible notes, preferred stock, stock issuable pursuant to the exercise of stock options
and warrants. Common stock equivalents are not included in the computation of diluted earnings per share when the Company reports
a loss because to do so would be anti-dilutive for periods presented. An uncertain number of shares underlying convertible debt
have been excluded from the computation of loss per share because their impact was anti-dilutive. Related Party Transactions Parties are considered to be related to the
Company if the parties directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common
control with the Company. Related parties also include principal stockholders of the Company, its management, members of the immediate
families of principal stockholders of the Company and its management and other parties with which the Company may deal where one
party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting
parties might be prevented from fully pursuing its own separate interests. The Company discloses all related party transactions.
All transactions shall be recorded at fair value of the goods or services exchanged. Property purchased from a related party is
recorded at the cost to the related party and any payment to or on behalf of the related party in excess of the cost is reflected
as compensation or distribution to related parties depending on the transaction. Recently Issued Accounting Standards In August 2016, the Financial Accounting Standards
Board (FASB) issued Accounting Standard Update (ASU) No. 2016-15, “ Statement of Cash Flows (Topic 230), Classification
of Certain Cash Receipts and Cash Payments” In February 2016, the FASB issued ASU No. 2016-02,
“ Leases (Topic 842)”. In May 2014, August 2015 and May 2016, the
FASB issued ASU 2014-09, “Revenue from Contracts with Customers” “Revenue from Contracts
with Customers, Deferral of the Effective Date” “Revenue from Contracts with Customers, Narrow-Scope
Improvements and Practical Expedients” In January 2017, the FASB issued ASU 2017-04
Intangibles – Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. In January 2017, the FASB issued ASU 2017-01
Business Combinations (Topic 805), Clarifying the Definition of a Business. In June 2017, the FASB issued ASU 2017-13,
Financial Instruments-Credit Losses. The standard requires a financial asset (including trade receivables) measured at amortized
cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement
of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses
that have taken place during the period. This standard will be effective for the calendar year ending December 31, 2020. The Company
is currently in the process of evaluating the impact of adoption of this ASU on the financial statements. In August 2017, the FASB issued Accounting
Standards Updated 2017-15, “Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments” (ASU
2017-15). The standard addresses eight specific cash flow issues to reduce diversity in practice in how certain cash receipts and
cash payments are presented on the Statements of Cash Flows. ASU 2017-15 is effective for fiscal years and interim periods within
those years beginning after December 15, 2017. The amendments require a retrospective approach to adoption and early adoption is
permitted, including in an interim period. The Company has adopted this standard effective Janaury 1, 2018, which did not have
a significant impact on its consolidated financial position, results of operations and liquidity. There were other updates recently issued, most
of which represent technical corrections to the accounting literature or application to specific industries or transactions that
are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. Going Concern The Company has an accumulated deficit of $1,608,781
and a working capital deficit of $1,593,691, as of September 30, 2018. As a result of these factors, Management has determined
that there is substantial doubt about the Company ability to continue as a going concern. These consolidated financial statements of
the Company have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things,
the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable period of time.
The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of the uncertainties. The Company plans to raise additional capital
to carry out its business plan. The Company’s ability to raise additional capital through future equity and debt securities
issuances is unknown. Obtaining additional financing, the successful development of the Company’s contemplated plan of operations,
ultimately, to profitable operations are necessary for the Company to continue operations. |
