REAC (REAC) 10-Q 14 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	3 Months Ended
	Mar. 31, 2015	12-May-15	Jun. 30, 2014
Document and Entity Information:
Entity Registrant Name	Real Estate Contacts, Inc.
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Entity Central Index Key	1520528
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding		6,090,837,528
Entity Public Float			$2,436,335
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	2015
Document Fiscal Period Focus	Q1

Balance_Sheet

Balance Sheet (USD $)	Mar. 31, 2015	Dec. 31, 2014
Assets, Current
Cash	$23,560	$71,378
Assets, Current	23,560	71,378
Website development costs, net of accumulated amortization of $34,908 and $11,703, respectively	107,341	113,884
Assets	130,901	185,262
Liabilities, Current
Accounts payable	15,592	45,806
Accrued expenses	623,768	505,715
Derivative Liabilities	624,097	1,016,112
Due to principle shareholder, related party	9,250
Convertible notes payable , current portion	222,083	277,153
Liabilities, Current	1,494,790	1,844,786
Liabilities	1,494,790	1,844,786
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
Common stock, value	60,908	2,465
Additional Paid in Capital	14,598,542	13,336,434
Accumulated Deficit	-16,023,339	-14,998,423
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	-1,363,889	-1,659,524
Total liabilities and stockholders' deficit	$130,901	$185,262

Statement_of_Financial_Positio

Statement of Financial Position - Parenthetical (USD $)	Mar. 31, 2015	Dec. 31, 2014
Balance Sheets - Parenthetical
Common Stock, Par Value	$0.00	$0.00
Common Stock, Shares Authorized	14,999,900,000	14,999,900,000
Common Stock, Shares Issued	6,090,837,528	246,509,673
Common Stock, Shares Outstanding	6,090,837,528	246,509,673
Preferred Stock, Shares Authorized	100,000	100,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

Statement_of_Income

Statement of Income (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues
Sales Revenue, Services, Net	$199	$421
Revenues	199	421
Operating Expenses
Selling Expense	2,506	5,876
Compensation	1,231,426	1,332,769
Professional	9,236	6,500
Rents and overhead		300
General and Administrative Expense	14,587	2,954
Amortization of intangible assets	6,543	3,839
Operating Expenses	1,264,298	1,352,238
Operating Income (Loss)	-1,264,099	-1,351,817
Nonoperating Income (Expense)
Interest Income (Expense)	-79,139	-8,522
Financing Costs		-109,831
Change in Derivatives	318,322	-673,043
Interest and Debt Expense	239,183	-791,396
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	-1,024,916	-2,143,213
Net Income (Loss)	($1,024,916)	($2,143,213)
Earnings Per Share
Loss Per Share, Basic and Dilutive	$0	($3.92)
Weighted Average Number of Share Outstanding, Basic and Dilutive	1,555,895,868	546,768

Statement_of_Cash_Flows

Statement of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Statement of Cash Flows
Net Income (Loss)	($1,024,916)	($2,143,213)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Depreciation, Depletion and Amortization	6,543	3,839
Stock-based compensation	1,140,000	1,295,000
In kind contribution of rent		300
Amortization of Debt Discounts	37,423	109,831
Increase Decrease in Derivative Liabilities	-318,322	673,043
Increase (Decrease) in Operating Liabilities
Accounts Payable	-20,414	3,530
Accrued Liabilities	122,618	9,096
Deferred Revenue		-421
Accrued salaries, shareholder	9,250	-24,000
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	977,098	2,070,218
Net Cash Provided by (Used in) Operating Activities	-47,818	-72,995
Net Cash Provided by (Used in) Investing Activities
Purchase of capitalized website costs		-12,000
Net Cash Provided by (Used in) Investing Activities		-12,000
Net Cash Provided by (Used in) Financing Activities
Proceeds from Notes Payable - Convertible		115,000
Net Cash Provided by (Used in) Financing Activities		115,000
Cash and Cash Equivalents, Period Increase (Decrease)	-47,818	30,005
Cash and Cash Equivalents, at Carrying Value	71,378	120,743
Cash and Cash Equivalents, at Carrying Value	23,560	150,748
Non-cash disclosures
Convertible note issued for trade accounts payable	20,775
Settlement of Notes and Accrued Interest in Exchange for Common Stock	$180,551	$157,515

Background_Information

Background Information	3 Months Ended
	Mar. 31, 2015
Notes
Background Information	1.               Background Information
	Real Estate Contacts, Inc. ("The Company") was formed on March 10, 2005 as a Florida Corporation and is based in Parrish, Florida. The Company engages in the ownership and operation of three real estate advertising portal websites. Real Estate Contacts, Inc. provides a comprehensive online real estate search portal that consists of an advertising and marketing platform for real estate professionals. Our company also provides and sells video real estate websites to real estate professionals. The Company has developed a national online real estate video listings portal that provides consumers the opportunity to view real estate in their local markets all in a video format.
	The company provides consumers the opportunity to view real estate listings and homes for sale in their local markets.  We enable real estate professionals to better promote themselves and their listings and connect with transaction-ready consumers through our online websites and marketing website products. Our current real estate search website and our new real estate video website product enable real estate professionals to increase their visibility and promote their listings.
	Real Estate Contacts, Inc. provides a service that enables real estate professionals to capture, cultivate, and convert leads which cater to prospective home buyers and sellers from our Real Estate Search engine website (www.realestatecontacts.com) and our Real Estate Video Listings Channel (www.realestatevideochannels.com).
	The Company’s business is conducted solely within the Internet and the Online Video arena.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
Notes
Summary of Significant Accounting Policies	2.               Summary of Significant Accounting Policies
	Basis of Presentation
	The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
	In the opinion of management, all adjustments consisting of a normal and recurring nature considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2015 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2015.
	For further information, refer to Real Estate Contacts, Inc.’s (the “Company”) audited financial statements and footnotes thereto included in the year ended December 31, 2014 Form 10K filed with the Securities and Exchange Commission.
	All share and per share information contained in this report gives retroactive effect to a 1 for 1,000 reverse stock split of our outstanding common stock, effective June 10, 2014, and a 1 for 10 reverse stock split, effective January 21, 2015.
	Use of Estimates
	In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. Our most significant estimates are for stock based compensation, and derivative assumptions used in calculating derivative liabilities and valuation and estimated useful life of website. We evaluate our estimates on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions.
	Reclassification
	Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation.  Our reclassifications were made to common stock and additional paid in capital, due to reverse splits in 2014 and 2015, which were retroactively adjusted to presentations of 2014 balance sheet.  These reclassifications had no effect on reported losses.
	Financial Instruments
	The Company’s balance sheets include the following financial instruments: cash, accounts payable, accrued expenses, and payables to a stockholder. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. The carrying values of the due to stockholder  approximates fair value based on borrowing rates currently available to the Company for instruments with similar terms and remaining maturities.  Convertible debt has been valued to fair market value in consideration of the fair value of the potential future consideration that may be required upon settlement.
	FASB Accounting Standards Codification (ASC) topic, “Fair Value Measurements and Disclosures”, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
	·       Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities
	·       Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
	·       Level 3 - Inputs that are both significant to the fair value measurement and unobservable.
	Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2015.  The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments.
	Cash Flow Reporting
	The Company follows ASC 230, Statement of Cash Flows, for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“indirect method”) as defined by ASC 230, Statement of Cash Flows, to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments.
	Cash and Cash Equivalents
	The majority of cash is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed on demand and, therefore, bear minimal risk. The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
	Accounts Receivable
	The Company currently does not issue credit on services provided, therefore there are no accounts receivable. No allowance for doubtful accounts is considered necessary to be established for amounts that may not be recoverable, since there has been no credit issued.
	Website Development Costs
	The Company accounts for website development costs in accordance with Accounting Standards Codification 350-50 “Website Development Costs”. Accordingly, all costs incurred in the planning stage are expensed as incurred, costs incurred in the website application and infrastructure development stage that meet specific criteria are capitalized and costs incurred in the day to day operation of the website are expensed as incurred.
	The Company placed its main website (www.realestatecontacts.com) into service prior to 2008, with a redesign of the website in 2015. Our video website channel (www.realestatevideochannels.com) is expected to be fully operational by year end. Our other website (www.realestatevideowebsites.com) is fully functional and currently used to sell video websites to real estate professionals.  All costs associated with these websites are subject to straight-line amortization over there expected useful life, a five year period.
	Intangible Assets
	In accordance with ASC 350-30-65 “Goodwill and Other Intangible Assets", the Company assesses the impairment of identifiable intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers important, which could trigger an impairment review include the following:
	1.      Significant underperformance compared to historical or projected future operating results;
	2.      Significant changes in the manner or use of the acquired assets or the strategy for the overall business; and
	3.      Significant negative industry or economic trends.
	When the Company determines that the carrying value of an intangible asset may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company measures any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent to the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows.
	For the three months ended March 31, 2015 and 2014, the Company did not impair any long-lived assets.
	Revenue Recognition
	The Company recognizes revenue on arrangements in accordance with FASB ASC No. 605, Revenue Recognition. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability is reasonably assured.
	Consideration for future advertising services are paid by customers in advance of those services being provided. Advertising revenue is recognized ratably over the period that the services are subscribed, generally a one year period, net of any estimates for chargebacks or refunds. The unearned portion of the advertising revenue is deferred until future periods in which the subscription is earned.
	The Company has not issued guarantees or other warrantees on the advertising subscription success or results. The Company has not experienced any refund requests or committed to any adjustments for terminated subscriptions. The Company does not believe that there is any required liability.
	Stock-based Compensation
	In December 2004, the FASB issued FASB ASC No. 718, Compensation – Stock Compensation (“ASC 718”). Under ASC 718, companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. The Company applies this statement prospectively.
	Equity instruments (“instruments”) issued to other than employees are recorded on the basis of the fair value of the instruments, as required by FASB ASC 718. FASB ASC No. 505, Equity Based Payments to Non-Employees (“ASC 505”) defines the measurement date and recognition period for such instruments. In general, the measurement date is (a) when a performance commitment, as defined, is reached or (b) when the earlier of (i) the non-employee performance is complete or (ii) the instruments are vested. The measured value related to the instruments is recognized over a period based on the facts and circumstances of each particular grant as defined in the ASC 505.
	Advertising
	The costs of advertising are expensed as incurred.  Advertising expense was $2,067 and $2,335 for the three months ended March 31, 2015 and 2014, respectively.
	Income Taxes
	The Company accounts for income taxes pursuant to the provisions of ASC 740-10, “Accounting for Income Taxes,” which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized.
	The Company follows the provisions of the ASC 740 -10 related to, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits.
	The Company has adopted ASC 740-10-25 Definition of Settlement, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. As of December 31, 2014, tax years ended December 31, 2013, 2012, 2011 are still potentially subject to audit by the taxing authorities.
	Earnings (Loss) Per Share
	Basic income per common share is computed based upon the weighted average common shares outstanding as defined by FASB ASC No. 260, Earnings Per Share.
	Diluted income per share includes the dilutive effects of stock options, warrants, and stock equivalents. To the extent stock options, stock equivalents and warrants are anti-dilutive; they are excluded from the calculation of diluted income per share. As of March 31, 2015 there were approximately 6,520,669 share equivalents, as calculated, for potential conversion demand of our outstanding convertible notes.
	Recently Issued Accounting Pronouncements
	We have reviewed all FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.

Going_Concern

Going Concern	3 Months Ended
	Mar. 31, 2015
Notes
Going Concern	3.                Going Concern
	The accompanying unaudited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern.
	The Company has a history of losses and has incurred a net loss for the three month period ending March 31, 2015 in the amount of $1,024,916. Additionally, the Company has negative working capital of approximately $1.5 million, an accumulated deficit of approximately $16.0 million, stockholders’ deficit of approximately $1.4 million and negative operating cash flows of approximately $48,000 for the three months ended March 31, 2015. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company depends upon capital to be derived from future financing activities such as subsequent offerings of its common stock or debt financing in order to operate and grow the business. There can be no assurance that the Company will be successful in raising such capital. The key factors that are not within the Company's control and that may have a direct bearing on operating results include, but are not limited to, acceptance of the Company's business plan, the ability to raise capital in the future, the ability to expand its customer base, and the ability to hire key employees to build and maintain websites and to provide services and support to its customers and users. There may be other risks and circumstances that management may be unable to predict.
	The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the possible inability of the Company to continue as a going concern.

Related_Party_Transactions

Related Party Transactions	3 Months Ended
	Mar. 31, 2015
Notes
Related Party Transactions	4.               Related Party Transactions
	On March 4, 2013, we entered into an employment agreement with Robert DeAngelis, our Chief Executive Officer. The employment agreement is for a period of three years and can be cancelled upon written notice by either employee or employer (if certain employee acts of misconduct are committed).The total minimum aggregate annual amount due under the employment agreement is $120,000 plus bonuses.  For the three months ending March 31, 2015 and 2014, the Company recorded compensation expense in the amount of $30,000 and $30,000, respectively.
	During the three months ending March 31, 2015 and 2014, the Company issued 4,850,000,000 and 365,000, respectively, shares of common stock to the Chief Executive Officer in exchange for services.  These shares were valued at quoted market prices of the stock at the date of grant, resulting in the recognition of $1,140,000 and $1,295,000 in compensation expense.
	From time to time, the majority shareholder has advanced funds and/or has deferred contractual salaries for the purpose of financing working capital and product development. Advances and deferrals amounted to $9,250 and $0 as of March 31, 2015 and December 31, 2014, respectively. There are no repayment terms to these advances and deferrals.  Management considers these amounts and balances due to be minimal and temporary, therefore no interest has been imputed.
	The controlling shareholder has pledged his support to fund continuing operations; however there is no written commitment to this effect. The Company is dependent upon the continued support of this shareholder.
	The Company has minimal needs for facilities and operates from office space provided by the majority shareholder. There are no lease terms. Rent has been provided without payment or charge.
	The amounts and terms of the above transactions may not necessarily be indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent third parties.

Website_Development_Costs

Website Development Costs	3 Months Ended
	Mar. 31, 2015
Notes
Website Development Costs	5.               Website Development Costs
		March 31,			31-Dec-14
		2015
	Website Development Costs	$	148,642		$	148,642
	Less accumulated amortization		(41,301	)		(34,758	)
	Property and equipment, net	$	107,341		$	113,884
	Amortization of website costs was $6,543 and $3,839 for the three month periods ending March 31, 2015 and 2014, respectively.

Accrued_Liabilities

Accrued Liabilities	3 Months Ended
	Mar. 31, 2015
Notes
Accrued Liabilities	6.               Accrued Liabilities
	Accrued expenses consist of:
		March 31,		31-Dec-14
		2015
	Accrued professional	$	8,500	$	-
	Accrued interest		24,275		26,148
	Accrued default provisions		50,000		-
	Accrued payroll taxes, penalties and interest		540,993		479,567
	Total accrued expenses	$	623,768	$	505,715
	The Company has paid stock based compensation, to its Chief Executive Officer totaling $1,140,000 and $1,295,000 during the three month periods ending March 31, 2015 and 2014, respectively.  However, the Company has not paid the related payroll taxes, consisting primarily of Social Security and Medicare taxes.  As a result, the Company has established an accrued liability for the related taxes, along with the estimated interest and penalties of $540,993 and $479,567 at March 31, 2015 and December 31, 2014, respectively.
	Deferred Revenue:
	Deferred revenues are derived from the unearned portion of advertising subscriptions.  Advertising revenue is generated primarily from annual subscription transactions.  Revenue is earned ratably over the expired portion of the subscription term.  The unearned portion is deferred until earned through the passage of time based on the subscription term.  As of March 31, 2015 and December 31, 2014, deferred revenue was $0 and $0, respectively.

Notes_Payable

Notes Payable	3 Months Ended
	Mar. 31, 2015
Notes
Notes Payable	7.               Debt Obligations
	The notes outstanding are summarized by their terms below:
		31-Mar-15	December 31,
			2014
	Convertible promissory notes, maturing at variable dates ranging from 180 days to one year from origination date, 8-10% interest, convertible at discount to trading price (40-49%) based on various measurements of prior trading, at face value of remaining original note principal outstanding, net of  unamortized debt discounts, attributable to derivative liabilities, and deferred financing costs in the amount of $16,323 and $145,584, respectively	222,083	277,153
	Total	$  222,083	$        277,153
	Summary of convertible note transactions:
	Convertible notes, before discounts, as of December 31, 2014	$  299,149
	Additional notes, face value	20,775
	Conversions of debt	-81,518
	Remaining notes, face value	238,406
	Unamortized financing costs	-
	Unamortized debt discounts	-16,323
	Convertible notes, March 31, 2015	$   222,083

Derivatives_and_Fair_Value

Derivatives and Fair Value	3 Months Ended
	Mar. 31, 2015
Notes
Derivatives and Fair Value	8.               Derivative Liability
	The Company evaluated the terms of the convertible notes, in accordance with ASC Topic No. 815 - 40, Derivatives and Hedging - Contracts in Entity’s Own Stock and that the underlying common stock is indexed to the Company’s common stock. The Company determined that the conversion features meet the definition of a liability and therefore bifurcated the conversion feature and accounted for it as a separate derivative liability. The Company evaluated the conversion feature for the embedded conversion option. Since these notes contain conversion price adjustment provisions (i.e., down round, or ratchet provisions), the Company determined that the embedded conversion options met the definition of a derivative. The effective conversion price was compared to the market price on the date of the note and was deemed to be less than the market value of underlying common stock at the inception of the note. The Company recognized a debt discount on the notes for the derivatives as a reduction (contra-liability) to the Convertible Notes Payable. The debt discounts are being amortized over the life of the notes.  The Company recognized financing costs for charges by the lender for original issue discounts and other applicable administrative costs, normally withheld from proceeds, which are being amortized as finance cost over the life of the loan.
	A derivative liability, in the amount of $624,097 has been recorded, as of March 31, 2015, related to the above convertible notes. The derivative value was calculated using the Black-Scholes method. Assumptions used in the derivative valuation were as follows:
	Weighted Average:
	Dividend rate	0.00%
	Risk-free interest rate	0.14%
	Expected lives (years)	.563
	Expected price volatility	490.70%
	Forfeiture Rate	0.00%
	ASC 825-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 825-10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825-10 describes three levels of inputs that may be used to measure fair value:
	Level 1   – Quoted prices in active markets for identical assets or liabilities;
	Level 2 – Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
	Level 3 – Unobservable inputs that are supported by little or no market activity and that are financial instruments whose values are determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. The Company’s Level 3 liabilities consist of the derivative liabilities associated with the convertible notes.  At March 31, 2015, all of the Company’s derivative liabilities were categorized as Level 3 fair value liabilities. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
	Level 3 Valuation Techniques
	Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.  Level 3 financial liabilities consist of the derivative liabilities for which there is no current market for these securities such that the determination of fair value requires significant judgment or estimation.  At the date of the original transaction, we valued the convertible note that contains down round provisions using a Black-Scholes model, with the assistance of a valuation consultant, for which management understands the methodologies. This model incorporates transaction details such as the Company’s stock price, contractual terms, maturity, risk free rates, as well as assumptions about future financings, volatility, and holder behavior.  Using assumptions, consistent with the original valuation, the Company has subsequently used the Black-Scholes model for calculating the fair value, as of March 31, 2015:
		Carrying Value	Level 1	Level 2	Level 3
	Derivative Liabilities	$     624,097	$	$	$     624,097
	Total Derivative Liabilities	$     624,097	$	$	$     624,097
	The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the three month period ending March 31, 2015:
	Fair Value Measurements using inputs
	Balance, December 31, 2014	$        1,016,112
	Total (gain) losses realized and included in net loss	-318,322
	Net increase due to issuances, settlements and transfers to equity	-73,693
	Transfers in (out)	--
	Balance, March 31, 2015	$       624,097

Equity

Equity	3 Months Ended
	Mar. 31, 2015
Notes
Equity	9.               Equity
	Stock Compensation
	The Company issued 4,850,000,000 shares of common stock to the Chief Executive Officer in exchange for services during the three months ending March 31, 2015.  These shares were valued at the fair market value of the stock at the date of grant, resulting in the recognition of $1,140,000 in compensation expense.
	The Company issued 365,000 shares of common stock to the Chief Executive Officer in exchange for services during the three months ending March 31, 2014.  These shares were valued at the fair market value of the stock at the date of grant, resulting in the recognition of $1,295,000 in compensation expense.
	Conversions of debt
	In the three month period ending March 31, 2015, the Company converted notes of $81,518 and accrued interest of $4,565 into 994,327,859 common shares, in accordance with terms of the agreements.  The conversion price, per agreement, was discounted to the fair market trading value. The Company recorded the exchange at the fair market value of the shares converted, the excess of which was charged against the derivative liability.  The fair market value of the stock was $180,551, of which $94,468 off set the established derivative liability.
	In the three month period ending March 31, 2014, the Company converted notes of $148,659 and accrued interest of $8,856 into 2,867,597,250 common shares, in accordance with terms of the agreements.  The conversion price, per agreement, was discounted to the fair market trading value. The Company recorded the exchange at the fair market value of the shares converted, the excess of which was charged against the derivative liability.  The fair market value of the stock was $1,027,555, of which $870,041 off set the existing derivative liability.
	Other
	During the three month periods ended March 31, 2015 and 2014 the Company recorded in-kind contributions for rent expense in the amount of $0 and $300, respectively.
	The Company’s Board of Directors approved a reverse stock split of 10:1 (ten shares for one share) on January 21, 2015.  All shares have been retroactively restated for this reverse stock split.
	There are no warrants or options currently outstanding.
	Amendment to the Articles of Incorporation
	On March 12, 2015, the Board of Directors recommended and the majority shareholder (holding 70% of the voting shares) voted in favor of increasing the authorized capital of the Company to Fifteen Billion (15,000,000,000) shares, to be effective March 16, 2015.  No change was made to the number of preferred shares authorized.  Accordingly, as of March 16, 2015, the total authorized capital of the Company is comprised of Fourteen Billion Nine-Hundred Ninety Nine Million Nine Hundred Thousand (14,999,900,000) shares of common stock, par value $0.00001 per share; 10,000 (ten thousand) shares of Preferred Stock, Series A, par value $0.0001 per share; and 90,000 (ninety thousand) shares of Preferred Stock, Series B, par value $0.001 per share.  The financial statements have retroactively presented the authorized shares, per this amendment.
	The total number of shares this corporation is authorized to issue is 15,000,000,000 (fifteen billion), allocated as follows among these classes and series of stock:
	Designation	Par value	Shares
	Common	$0.00	14,999,900,000
	Preferred Stock Class, Series A	$0.00	10,000
	Preferred Stock Class, Series B	$0.00	90,000
	No preferred shares have been issued and have not been defined for the preferences.

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Notes
Commitments and Contingencies	10.            Commitments and Contingencies
	From time to time the Company may be a party to litigation matters involving claims against the Company.   Management believes that there are no known or potential matters that would have a material effect on the Company’s financial position or results of operations.
	The Company’s operations are subject to significant risks and uncertainties including financial, operational and regulatory risks, including the potential risk of business failure.
	There were no operating or capital lease commitments as of March 31, 2015 and December 31, 2014.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies: Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Basis of Presentation	Basis of Presentation
	The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim information and with the instructions to Form 10-Q and Regulation S-K. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.
	In the opinion of management, all adjustments consisting of a normal and recurring nature considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2015 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2015.
	For further information, refer to Real Estate Contacts, Inc.’s (the “Company”) audited financial statements and footnotes thereto included in the year ended December 31, 2014 Form 10K filed with the Securities and Exchange Commission.
	All share and per share information contained in this report gives retroactive effect to a 1 for 1,000 reverse stock split of our outstanding common stock, effective June 10, 2014, and a 1 for 10 reverse stock split, effective January 21, 2015.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies: Use of Estimates (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Use of Estimates	Use of Estimates
	In preparing financial statements in conformity with generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates. Our most significant estimates are for stock based compensation, and derivative assumptions used in calculating derivative liabilities and valuation and estimated useful life of website. We evaluate our estimates on an ongoing basis. Actual results may differ from these estimates under different assumptions or conditions.

Summary_of_Significant_Account3

Summary of Significant Accounting Policies: Reclassification (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Reclassification	Reclassification
	Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation.  Our reclassifications were made to common stock and additional paid in capital, due to reverse splits in 2014 and 2015, which were retroactively adjusted to presentations of 2014 balance sheet.  These reclassifications had no effect on reported losses.

Summary_of_Significant_Account4

Summary of Significant Accounting Policies: Financial Instruments (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Financial Instruments	Financial Instruments
	The Company’s balance sheets include the following financial instruments: cash, accounts payable, accrued expenses, and payables to a stockholder. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization. The carrying values of the due to stockholder  approximates fair value based on borrowing rates currently available to the Company for instruments with similar terms and remaining maturities.  Convertible debt has been valued to fair market value in consideration of the fair value of the potential future consideration that may be required upon settlement.
	FASB Accounting Standards Codification (ASC) topic, “Fair Value Measurements and Disclosures”, defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
	·       Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities
	·       Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
	·       Level 3 - Inputs that are both significant to the fair value measurement and unobservable.
	Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of March 31, 2015.  The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments.

Summary_of_Significant_Account5

Summary of Significant Accounting Policies: Cash Flow Reporting (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Cash Flow Reporting	Cash Flow Reporting
	The Company follows ASC 230, Statement of Cash Flows, for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (“indirect method”) as defined by ASC 230, Statement of Cash Flows, to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments.

Summary_of_Significant_Account6

Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Cash and Cash Equivalents	Cash and Cash Equivalents
	The majority of cash is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed on demand and, therefore, bear minimal risk. The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.

Summary_of_Significant_Account7

Summary of Significant Accounting Policies: Accounts Receivable and Credit (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Accounts Receivable and Credit	Accounts Receivable
	The Company currently does not issue credit on services provided, therefore there are no accounts receivable. No allowance for doubtful accounts is considered necessary to be established for amounts that may not be recoverable, since there has been no credit issued.

Summary_of_Significant_Account8

Summary of Significant Accounting Policies: Website Development Costs (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Website Development Costs	Website Development Costs
	The Company accounts for website development costs in accordance with Accounting Standards Codification 350-50 “Website Development Costs”. Accordingly, all costs incurred in the planning stage are expensed as incurred, costs incurred in the website application and infrastructure development stage that meet specific criteria are capitalized and costs incurred in the day to day operation of the website are expensed as incurred.
	The Company placed its main website (www.realestatecontacts.com) into service prior to 2008, with a redesign of the website in 2015. Our video website channel (www.realestatevideochannels.com) is expected to be fully operational by year end. Our other website (www.realestatevideowebsites.com) is fully functional and currently used to sell video websites to real estate professionals.  All costs associated with these websites are subject to straight-line amortization over there expected useful life, a five year period.

Summary_of_Significant_Account9

Summary of Significant Accounting Policies: Intangible Assets (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Intangible Assets	Intangible Assets
	In accordance with ASC 350-30-65 “Goodwill and Other Intangible Assets", the Company assesses the impairment of identifiable intangible assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors the Company considers important, which could trigger an impairment review include the following:
	1.      Significant underperformance compared to historical or projected future operating results;
	2.      Significant changes in the manner or use of the acquired assets or the strategy for the overall business; and
	3.      Significant negative industry or economic trends.
	When the Company determines that the carrying value of an intangible asset may not be recoverable based upon the existence of one or more of the above indicators of impairment and the carrying value of the asset cannot be recovered from projected undiscounted cash flows, the Company records an impairment charge. The Company measures any impairment based on a projected discounted cash flow method using a discount rate determined by management to be commensurate with the risk inherent to the current business model. Significant management judgment is required in determining whether an indicator of impairment exists and in projecting cash flows.
	For the three months ended March 31, 2015 and 2014, the Company did not impair any long-lived assets.

Recovered_Sheet1

Summary of Significant Accounting Policies: Revenue Recognition (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Revenue Recognition	Revenue Recognition
	The Company recognizes revenue on arrangements in accordance with FASB ASC No. 605, Revenue Recognition. In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed and collectability is reasonably assured.
	Consideration for future advertising services are paid by customers in advance of those services being provided. Advertising revenue is recognized ratably over the period that the services are subscribed, generally a one year period, net of any estimates for chargebacks or refunds. The unearned portion of the advertising revenue is deferred until future periods in which the subscription is earned.
	The Company has not issued guarantees or other warrantees on the advertising subscription success or results. The Company has not experienced any refund requests or committed to any adjustments for terminated subscriptions. The Company does not believe that there is any required liability.

Recovered_Sheet2

Summary of Significant Accounting Policies: Share-based Compensation (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Share-based Compensation	Stock-based Compensation
	In December 2004, the FASB issued FASB ASC No. 718, Compensation – Stock Compensation (“ASC 718”). Under ASC 718, companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. The Company applies this statement prospectively.
	Equity instruments (“instruments”) issued to other than employees are recorded on the basis of the fair value of the instruments, as required by FASB ASC 718. FASB ASC No. 505, Equity Based Payments to Non-Employees (“ASC 505”) defines the measurement date and recognition period for such instruments. In general, the measurement date is (a) when a performance commitment, as defined, is reached or (b) when the earlier of (i) the non-employee performance is complete or (ii) the instruments are vested. The measured value related to the instruments is recognized over a period based on the facts and circumstances of each particular grant as defined in the ASC 505.

Recovered_Sheet3

Summary of Significant Accounting Policies: Advertising Costs (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Advertising Costs	Advertising
	The costs of advertising are expensed as incurred.  Advertising expense was $2,067 and $2,335 for the three months ended March 31, 2015 and 2014, respectively.

Recovered_Sheet4

Summary of Significant Accounting Policies: Income Taxes (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Income Taxes	Income Taxes
	The Company accounts for income taxes pursuant to the provisions of ASC 740-10, “Accounting for Income Taxes,” which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized.
	The Company follows the provisions of the ASC 740 -10 related to, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions are all highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits.
	The Company has adopted ASC 740-10-25 Definition of Settlement, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. As of December 31, 2014, tax years ended December 31, 2013, 2012, 2011 are still potentially subject to audit by the taxing authorities.

Recovered_Sheet5

Summary of Significant Accounting Policies: Earnings (loss) Per Share (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Earnings (loss) Per Share	Earnings (Loss) Per Share
	Basic income per common share is computed based upon the weighted average common shares outstanding as defined by FASB ASC No. 260, Earnings Per Share.
	Diluted income per share includes the dilutive effects of stock options, warrants, and stock equivalents. To the extent stock options, stock equivalents and warrants are anti-dilutive; they are excluded from the calculation of diluted income per share. As of March 31, 2015 there were approximately 6,520,669 share equivalents, as calculated, for potential conversion demand of our outstanding convertible notes.

Recovered_Sheet6

Summary of Significant Accounting Policies: Recently Issued Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2015
Policies
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements
	We have reviewed all FASB issued Accounting Standards Update (“ASU”) accounting pronouncements and interpretations thereof that have effectiveness dates during the periods reported and in future periods. The Company has carefully considered the new pronouncements that alter previous generally accepted accounting principles and does not believe that any new or modified principles will have a material impact on the corporation’s reported financial position or operations in the near term. The applicability of any standard is subject to the formal review of our financial management and certain standards are under consideration.

Accrued_Liabilities_Schedule_o

Accrued Liabilities: Schedule of Accrued Liabilities (Tables)	3 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Accrued Liabilities
		March 31,		31-Dec-14
		2015
	Accrued professional	$	8,500	$	-
	Accrued interest		24,275		26,148
	Accrued default provisions		50,000		-
	Accrued payroll taxes, penalties and interest		540,993		479,567
	Total accrued expenses	$	623,768	$	505,715

Notes_Payable_Schedule_of_Shor

Notes Payable: Schedule of Short-term Debt (Tables)	3 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Short-term Debt		31-Mar-15	December 31,
			2014
	Convertible promissory notes, maturing at variable dates ranging from 180 days to one year from origination date, 8-10% interest, convertible at discount to trading price (40-49%) based on various measurements of prior trading, at face value of remaining original note principal outstanding, net of  unamortized debt discounts, attributable to derivative liabilities, and deferred financing costs in the amount of $16,323 and $145,584, respectively	222,083	277,153
	Total	$  222,083	$        277,153
	Summary of convertible note transactions:
	Convertible notes, before discounts, as of December 31, 2014	$  299,149
	Additional notes, face value	20,775
	Conversions of debt	-81,518
	Remaining notes, face value	238,406
	Unamortized financing costs	-
	Unamortized debt discounts	-16,323
	Convertible notes, March 31, 2015	$   222,083

Derivatives_and_Fair_Value_Sch

Derivatives and Fair Value: Schedule of Assumptions Used (Tables)	3 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Assumptions Used
	Weighted Average:
	Dividend rate	0.00%
	Risk-free interest rate	0.14%
	Expected lives (years)	.563
	Expected price volatility	490.70%
	Forfeiture Rate	0.00%

Derivatives_and_Fair_Value_Sch1

Derivatives and Fair Value: Schedule of Derivative Instruments (Tables)	3 Months Ended
	Mar. 31, 2015
Tables/Schedules
Schedule of Derivative Instruments		Carrying Value	Level 1	Level 2	Level 3
	Derivative Liabilities	$     624,097	$	$	$     624,097
	Total Derivative Liabilities	$     624,097	$	$	$     624,097

Derivatives_and_Fair_Value_Fai

Derivatives and Fair Value: Fair Value, Measurement Inputs, Disclosure (Tables)	3 Months Ended
	Mar. 31, 2015
Tables/Schedules
Fair Value, Measurement Inputs, Disclosure
	Fair Value Measurements using inputs
	Balance, December 31, 2014	$        1,016,112
	Total (gain) losses realized and included in net loss	-318,322
	Net increase due to issuances, settlements and transfers to equity	-73,693
	Transfers in (out)	--
	Balance, March 31, 2015	$       624,097

Recovered_Sheet7

Summary of Significant Accounting Policies: Advertising Costs (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Details
Advertising Expense	$2,067	$2,335