REAC (REAC) 10-Q/A 17 Nov 16 2016 Q3 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - USD ($)	9 Months Ended
	Sep. 30, 2016	Nov. 15, 2016	Jun. 30, 2016
Document and Entity Information:
Entity Registrant Name	Real Estate Contacts, Inc.
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Trading Symbol	reac
Amendment Flag	false
Entity Central Index Key	1,520,528
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		248,179
Entity Public Float			$ 41,722
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	2,016
Document Fiscal Period Focus	Q3

Balance Sheet

Balance Sheet - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Assets, Current
Cash	$ 314	$ 280
Assets, Current	314	280
Assets	314	280
Liabilities, Current
Accounts payable	19,263	5,592
Accrued interest	138,033	96,175
Accrued Salaries, Payroll Taxes and Related Expenses	544,188	537,171
Derivative Liabilities	576,757	485,142
Due to principle shareholder, related party	57,707	101,440
Notes payable	31,250	20,250
Convertible notes payable , current portion	154,613	196,865
Liabilities, Current	1,521,811	1,442,635
Liabilities	1,521,811	1,442,635
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest
Preferred Stock, Value, Outstanding	5
Common stock, value	2	1
Additional Paid in Capital	15,147,775	14,952,867
Accumulated Deficit	(16,669,279)	(16,395,223)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	(1,521,497)	(1,442,355)
Total liabilities and stockholders' deficit	$ 314	$ 280

Statement of Financial Position

Statement of Financial Position - Parenthetical - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Common Stock, Par Value	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	249,000,000	249,000,000
Common Stock, Shares Issued	246,724	106,724
Common Stock, Shares Outstanding	246,724	106,724
Preferred Class A
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	500,000	500,000
Preferred Stock, Shares Issued	50,935
Preferred Stock, Shares Outstanding	50,935
Preferred Class B
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	500,000	500,000

Statement of Income

Statement of Income - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues
Sales Revenue, Services, Net				$ 199
Revenues				199
Operating Expenses
Selling Expense		$ 1,318	$ 0	7,056
Compensation	$ 32,340	188,570	97,018	1,452,336
Professional	12,475	5,600	25,464	18,836
General and Administrative Expense	701	9,309	7,340	27,434
Amortization of intangible assets		7,542		21,435
Asset Impairment Charges		92,449		92,449
Operating Expenses	45,516	304,788	129,822	1,619,546
Operating Income (Loss)	(45,516)	(304,788)	(129,822)	(1,619,347)
Nonoperating Income (Expense)
Interest Income (Expense)	(6,868)	(10,910)	(65,328)	(111,027)
Change in Derivatives	(208,352)	34,508	(115,129)	361,480
Extinguishment of Debt, Amount		0	36,223	0
Interest and Debt Expense	(215,220)	23,598	(144,234)	250,453
Net Income (Loss) before Provision for Income Taxes	(260,736)	(281,190)	(274,056)	(1,368,894)
Net Income (Loss)	$ (260,736)	$ (281,190)	$ (274,056)	$ (1,368,894)
Earnings Per Share
Gain/(loss) Per Share, Basic and Dilutive	$ (2.09)	$ (5.09)	$ (2.43)	$ (64.61)
Weighted Average Number of Share Outstanding, Basic and Dilutive	124,992	55,251	112,852	21,188

Statement of Cash Flows

Statement of Cash Flows - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Net Income (Loss)
Net Income (Loss)	$ (274,056)	$ (1,368,894)
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities
Amortization		21,435
Impairment of website		92,449
Stock-based compensation		1,290,000
In kind contribution of rent	900
Amortization of Debt Discounts and financing costs		42,771
Increase Decrease in Fair Value of Derivative Liabilities	115,129	(361,480)
Gain on Extinguishment of Debt	(36,223)
Changes in Assets and Liabilities
Accounts Payable	(2,592)	(19,439)
Accrued Liabilities	57,092	147,594
Accrued salaries, payroll taxes and related expenses	7,017	90,000
Due to Principal Shareholder	121,767
Adjustments to Reconcile Net Loss to Cash Provided by Operations	263,090	1,303,330
Net Cash Provided by (Used in) Operating Activities	(10,966)	(65,564)
Net Cash Provided by (Used in) Financing Activities
Proceeds from Notes and Advances, Principal Shareholder	11,000	21,075
Proceeds from (Repayments of) Notes Payable	(5,000)	(26,635)
Proceeds from Issuance of Common Stock	5,000
Net Cash Provided by (Used in) Financing Activities	11,000	(5,560)
Cash and Cash Equivalents, Period Increase (Decrease)	34	(71,124)
Cash and Cash Equivalents, at Carrying Value	280	71,378
Cash and Cash Equivalents, at Carrying Value	314	254
Non-cash disclosures
Reclassification to additional paid in capital upon settlement of notes payable	23,514
Settlement of Convertible Notes and Accrued Interest in Exchange for Common Shares		$ 95,471
Reduction of amount due to principal stockholder and cancellation of common stock in exchange for issuance of preferred stock	$ 165,500

Background Information

Background Information	9 Months Ended
	Sep. 30, 2016
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 a real estate advertising portal website. Real Estate Contacts, Inc. provides a comprehensive online real estate search portal that consists of an advertising and marketing platform for real estate professionals. 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 website. Our current real estate search website will enable real estate professionals to increase their visibility and promote their listings. Real Estate Contacts, Inc. intends to provide 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). The Company is in the first stage of development for our new national real estate website, (www.realestatecontacts.com). We plan to build, design and launch a real estate website that will consist of local community city pages that feature real estate agents, brokers, and offices on an exclusive basis. Each one of our “Real Estate Contacts” would be featured exclusively in the city that they work and include a profile page and a community page. The Company’s business is conducted solely within the Internet.

Significant Accounting Policies

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2016
Notes
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 nine month period ended September 30, 2016 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to Real Estate Contacts, Inc.’s (the “Company”) audited financial statements and notes thereto included in the year ended December 31, 2015 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, effective September 10, 2014, a 1 for 10 reverse stock split, effective January 21, 2015, a 1 for 100 reverse stock split effective September 15, 2015, and a 1 for 10,000 reverse stock split of outstanding common stock, effective July 15, 2016. 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. Reclassifications 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 2016 and 2015, which were retroactively adjusted to presentations of the 2016 and 2015 balance sheet. Additional reclassifications were made to accrued interest and the convertible note principal balances to reclassify interest default penalties incurred from convertible note payable balances to accrued interest. 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, notes payable 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 notes payable and amounts due to stockholder approximates fair value based on borrowing rates currently available to the Company for instruments with similar terms and remaining maturities. The derivative liability has been valued at fair market value, in consideration of the fair value of the potential future consideration that may be required upon settlement under the terms of the convertible debt instruments. 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: · · · Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2016. Cash Flow Reporting The Company follows ASC 230, Statement of Cash Flows Statement of Cash Flows Cash and Cash Equivalents 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. The Company had no cash equivalents at either September 30, 2016 or as of December 31, 2015. 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) and our other website (www.realestatevideowebsites.com) were shut down in September 2015 by the website hosting company. All costs associated with these websites are subject to straight-line amortization over there expected useful life, a five year period. As of December 31, 2015, the Company impaired the carrying value of capitalized costs associated with our websites and recognized an impairment loss in the amount of $92,449. Intangible Assets In accordance with ASC 350-30-65 “Goodwill and Other Intangible Assets", the Company assesses the impairment of identifiable intangible assets, including website development costs, 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. Due to multiple issues with our programmer, who hosts our website, management believes that the website may not be functional to the required specification. Management believes that significant modifications may be necessary. Based on the information available to management, in consideration of all issues, an impairment loss of $92,449 was recognized in the quarter ended December 31, 2015 for the carrying value of the website development costs. Revenue Recognition The Company recognizes revenue on arrangements in accordance with FASB ASC No. 605, Revenue Recognition. 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 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 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. The Company has adopted ASC 740-10-25 Definition of Settlement, Earnings 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 September 30, 2016 there were approximately 589,713 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.

3. Going Concern

3. Going Concern	9 Months Ended
	Sep. 30, 2016
Notes
3. 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 an accumulated deficit from inception of approximately $16.7 million. Additionally, the Company has negative working capital of approximately $1.5 million at September 30, 2016, a stockholders’ deficit of approximately $1.5 million, and negative operating cash flows of approximately $10,966 for the nine months ended September 30, 2016. 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	9 Months Ended
	Sep. 30, 2016
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 nine months ending September 30, 2016 and 2015, the Company recorded compensation expense in the amount of $90,000 and $90,000, respectively. The majority shareholder has advanced funds or deferred contractual salaries since inception, for the purpose of financing working capital and product development. As of September 30, 2016, the Company owed $57,707. There are no repayment terms to these advances and deferrals. The Company has accrued interest at a minimal variable rate, currently 3%. Management will periodically adjust this rate following guidelines of applicable federal rates. Additionally, the majority shareholder has advanced funds, in the form of promissory notes, in the amount of $31,250 as of September 30, 2016. These promissory notes mature and are payable in six months from the date issued and have a minimal stated interest. Interest is accrued at 3% on these notes. Total interest accrued on these advances and notes is $20,451 as of September 30, 2016. The Company has minimal needs for facilities and operates from office space provided by the majority shareholder. There are no lease terms. For the nine months ended September 30, 2016 and 2015, rent has been calculated based on the limited needs at a fair market value of the space provided. Rent expense was $900 and $0 for the nine months ended September 30, 2016 and 2015, respectively. The rental value provided has been recognized as an operating expense and treated as a contribution to capital. 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. In August 2016, the sole director, Robert DeAngelis, accepted an offer to convert $165,500 of the Company’s existing indebtedness payable to Robert DeAngelis. The transaction involved the issuance of 50,935 shares of the Company’s newly designated Series A Preferred Shares to Mr. DeAngelis and retiring 60,000 of his shares of common stock. The value of the preferred stock issued was deemed to be equal to the converted indebtedness. During the nine months ended September 30, 2016 and 2015, the Company issued nil and 48,500,000 shares, respectively, of common stock to the Chief Executive Officer in exchange for services. These shares were valued at the closing market prices of the stock at the date of grant, resulting in the recognition of $0 and $1,140,000 in compensation expense.

Accrued Liabilities

Accrued Liabilities	9 Months Ended
	Sep. 30, 2016
Notes
Accrued Liabilities	5. Accrued Liabilities Accrued expenses consist of: September 30, 2016 December 31, 2015 Accrued professional fees $ 19,263 $ 5,592 Accrued interest 138,033 96,175 Accrued salaries, payroll taxes and related expenses (a) 544,188 537,171 Total accrued expenses $ 701,484 $ 638,938 (a) The Company has paid or accrued compensation to its Chief Executive Officer totaling $90,000 and $1,290,000 during the nine month periods ending September 30, 2016 and 2015, 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 compensation and related taxes, along with the estimated interest and penalties of $544,188 and $537,171 at September 30, 2016 and December 31, 2015, 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 September 30, 2016 and December 31, 2015, there was no deferred revenue.

Debt Obligations

Debt Obligations	9 Months Ended
	Sep. 30, 2016
Notes
Debt Obligations	6. Debt Obligations The notes outstanding are summarized by their terms below: Schedule of Debt September 30, 2016 December 31, 2015 Convertible promissory notes, various lending institutions, maturing at variable dates ranging from 180 days to one year from origination date, 8-10% interest and in default interest of 12-22%, convertible at discount to trading price (25-50%) based on various measurements of prior trading, at face value of remaining original note principal balance, net of unamortized debt discounts attributable to derivative liabilities, and deferred financing costs in the amount of $0 and $0, respectively. Notes in default as of September 30, 2016 totaled $53,409 and *delinquency penalties have been assessed accordingly. 154,613 171,964 Total $ 154,613 $ 171,964 *Delinquency Penalties Summary of convertible note transactions: September 30, 2016 Convertible notes, December 31 $ 171,964 Payments and adjustments (17,351) Convertible notes, September 30 $ 154,613

Derivative Liability

Derivative Liability	9 Months Ended
	Sep. 30, 2016
Notes
Derivative Liability	7. 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 A derivative liability, in the amount of $576,757 has been recorded as of September 30, 2016, 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 0.0% Risk-free interest rate .45% Expected lives (years) .697 Expected price volatility 569,1% Forfeiture Rate 0.0% 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 Level 2 Level 3 The Company’s Level 3 liabilities consist of the derivative liabilities associated with the convertible notes. At September 30, 2016, 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 Carrying Value Level 1 Level 2 Level 3 Derivative Liabilities $ 576,757 $ - $ - $ 576,757 Total Derivative Liabilities $ 576,757 $ - $ - $ 576,757 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 September 30, 2016. 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 nine month period ending September 30, 2016: Balance, December 31, 2015 $ 485,142 Reclassification to additional paid in capital upon settlement of notes payable (23,514) Total losses realized and included in net income 115,129 Balance, September 30, 2016 $ 576,757

Equity

Equity	9 Months Ended
	Sep. 30, 2016
Notes
Equity	8. Equity Common Stock The Company has authorized 249,000,000 shares of Common stock, par value $0.00001, of which 246,724 and 101,889 shares were issued and outstanding as of September 30, 2016. In September 2016, the Company issued 200,000 shares of common stock for cash to two investors. The transactions were valued at $0.025 per share, totaling $5,000. Preferred Stock, Series A The Company has authorized 500,000 shares of Preferred, Series A stock, par value $0.0001, of which 50,935 and -0- shares were issued and outstanding as of September 30, 2016 and 2015, respectively. Each share of Series A Preferred Stock has voting rights equal to 5,000 common shares. There are no conversion features. On August 29, 2016, the sole director accepted an offer to convert $165,500 of the existing indebtedness due to Robert DeAngelis and to cancel 60,000 of his shares of common stock in exchange for the issuance of 50,935 shares of the Company’s newly designated Series A Preferred Shares. Stock Compensation During the nine months ended September 30, 2016, the Company did not issue stock in the form of compensation. The Company issued 64,800 shares of common stock to the Chief Executive Officer in exchange for services during the nine months ended September 30, 2015. These shares were valued at the fair market value of the stock at the date of grant, resulting in the recognition of $1,290,000 in compensation expense. Conversions of debt During the nine months ended September 30, 2016, the Company did not issue shares in connection with its convertible notes. On September 10, 2016, the Company settled a convertible note payable carrying a principal balance of $9,175 and accrued interest of $4,346 for consideration of $3,000, resulting in a gain on settlement of $11,031. On March 11, 2016, the Company settled a convertible note payable carrying a principal balance of $19,397 and accrued interest of $7,795 for consideration of $2,000, resulting in a gain on settlement of $25,192. 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. Other During the nine month periods ended September 30, 2016 and 2015, the Company recorded in-kind contributions for rent expense in the amount of $900 and $0, respectively. The Company’s Board of Directors approved reverse stock splits of: 1 for 1,000 on September 10, 2014; 1 for 10 on January 21, 2015; and 1 for 100 on September 15, 2015, and a 1 for 10,000 reverse stock split of your outstanding common stock, effective July 15, 2016. 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 August 19, 2015, the Board of Directors recommended and the majority shareholder (holding 56% of the voting shares) voted in favor of increasing the authorized capital of the Company to One Billion Five Hundred Million (1,500,000,000) shares. Accordingly, the total authorized capital of the Company is comprised of One Billion Four Hundred Ninety Nine Million (1,499,000,000) shares of common stock, par value $0.00001 per share; 500,000 (five hundred thousand) shares of Preferred Stock, Series A, par value $0.0001 per share; and 500,000 (five hundred thousand) shares of Preferred Stock, Series B, par value $0.001 per share. On January 14, 2016, the Company filed Articles of Amendment with the Secretary of State of Florida decreasing the authorized capital of the Company from One Billion Five Hundred Million (1,500,000,000) Shares to One Million One Hundred Forty-Nine Thousand Nine Hundred (1,149,900) shares. This consisted of 500,000 shares of preferred stock, Series A, par value $0.0001per share; 500,000 shares of preferred stock, Series B, par value $0.001 per share, and 149,900 shares of Common Stock, par value $0.00001 per shares. This was done in anticipation of a 1 for 10,000 reverse stock split which became effective July 15, 2016. The financial statements for all periods presented have been retroactively adjusted to reflect this stock split. On July 20, 2016, the Board of Directors recommended and the majority shareholder (holding 61% of the voting shares) voted in favor of increasing the authorized capital of the Company from One Million One Hundred Forty-Nine Thousand Nine Hundred (1,149,900) Shares to Two Hundred Fifty Million (250,000,000) shares, to be effective July 20, 2016. No change was made to the number of preferred shares authorized. Accordingly, as of July 20, 2016, the total authorized capital of the Company will be comprised of Two Hundred Forty Nine Million (249,000,000) shares of common stock, par value $0.00001 per share; 500,000 (Five Hundred Thousand) shares of Preferred Stock, Series A, par value $0.0001 per share; and 500,000 (Five Hundred Thousand) shares of Preferred Stock, Series B, par value $0.001 per share. The financial statements for all periods presented have been retroactively adjusted to reflect this recapitalization. As of September 30, 2016, the total number of shares this corporation is authorized to issue is 250,000,000 (two hundred fifty million), allocated as follows among these classes and series of stock: Designation Par value Shares Common $0.00001 249,000,000 Preferred Stock Class, Series A $0.0001 500,000 Preferred Stock Class, Series B $0.001 500,000 No preferred shares have been issued.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Notes
Commitments and Contingencies	9. 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 September 30, 2016 and September 30, 2015.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Notes
Subsequent Events	10. Subsequent Events The Company has evaluated all events that occur after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. The Management of the Company determined that there were no reportable subsequent events to be disclosed except as described below. In the interest of full disclosure, the Company hereby discloses the following non-public information reported on a Form 8-K: On November 15, 2016, the Company approved the signing of a non-binding Letter of Intent (“LOI”) for the acquisition of all assets, trade secrets, intellectual property, and proprietary information of Patriot Bioenergy Corporation, a Kentucky corporation. If after a period of due diligence all terms and conditions are agreed and conditions to Closing are met, definitive agreements would be executed. If Closing occurs as anticipated, these transactions would be dilutive to existing shareholders. No assurance can be had that the above transactions will be satisfactorily concluded. If these transactions are in fact concluded, the acquisitions will be reported in a report on Form 8-K.

Significant Accounting Polici16

Significant Accounting Policies: Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2016
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 nine month period ended September 30, 2016 may not necessarily be indicative of the results that may be expected for the year ending December 31, 2016. For further information, refer to Real Estate Contacts, Inc.’s (the “Company”) audited financial statements and notes thereto included in the year ended December 31, 2015 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, effective September 10, 2014, a 1 for 10 reverse stock split, effective January 21, 2015, a 1 for 100 reverse stock split effective September 15, 2015, and a 1 for 10,000 reverse stock split of outstanding common stock, effective July 15, 2016.

Significant Accounting Polici17

Significant Accounting Policies: Use of Estimates (Policies)	9 Months Ended
	Sep. 30, 2016
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.

Significant Accounting Polici18

Significant Accounting Policies: Reclassification (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
Reclassification	Reclassifications 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 2016 and 2015, which were retroactively adjusted to presentations of the 2016 and 2015 balance sheet. Additional reclassifications were made to accrued interest and the convertible note principal balances to reclassify interest default penalties incurred from convertible note payable balances to accrued interest. These reclassifications had no effect on reported losses.

Significant Accounting Polici19

Significant Accounting Policies: Financial Instruments (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
Financial Instruments	Financial Instruments The Company’s balance sheets include the following financial instruments: cash, accounts payable, accrued expenses, notes payable 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 notes payable and amounts due to stockholder approximates fair value based on borrowing rates currently available to the Company for instruments with similar terms and remaining maturities. The derivative liability has been valued at fair market value, in consideration of the fair value of the potential future consideration that may be required upon settlement under the terms of the convertible debt instruments. 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: · · · Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2016.

Significant Accounting Polici20

Significant Accounting Policies: Cash Flow Reporting (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
Cash Flow Reporting	Cash Flow Reporting The Company follows ASC 230, Statement of Cash Flows Statement of Cash Flows

Significant Accounting Polici21

Significant Accounting Policies: Cash and Cash Equivalents (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
Cash and Cash Equivalents	Cash and Cash Equivalents 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. The Company had no cash equivalents at either September 30, 2016 or as of December 31, 2015.

Significant Accounting Polici22

Significant Accounting Policies: Accounts Receivable (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
Accounts Receivable	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.

Significant Accounting Polici23

Significant Accounting Policies: Website Development Costs (Policies)	9 Months Ended
	Sep. 30, 2016
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) and our other website (www.realestatevideowebsites.com) were shut down in September 2015 by the website hosting company. All costs associated with these websites are subject to straight-line amortization over there expected useful life, a five year period. As of December 31, 2015, the Company impaired the carrying value of capitalized costs associated with our websites and recognized an impairment loss in the amount of $92,449.

Significant Accounting Polici24

Significant Accounting Policies: Intangible Assets (Policies)	9 Months Ended
	Sep. 30, 2016
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, including website development costs, 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. Due to multiple issues with our programmer, who hosts our website, management believes that the website may not be functional to the required specification. Management believes that significant modifications may be necessary. Based on the information available to management, in consideration of all issues, an impairment loss of $92,449 was recognized in the quarter ended December 31, 2015 for the carrying value of the website development costs.

Significant Accounting Polici25

Significant Accounting Policies: Revenue Recognition (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
Revenue Recognition	Revenue Recognition The Company recognizes revenue on arrangements in accordance with FASB ASC No. 605, Revenue Recognition. 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.

Significant Accounting Polici26

Significant Accounting Policies: Stock Based Compensation (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
Stock Based Compensation	Stock Based Compensation In December 2004, the FASB issued FASB ASC No. 718, Compensation – Stock Compensation 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

Significant Accounting Polici27

Significant Accounting Policies: Income Taxes (Policies)	9 Months Ended
	Sep. 30, 2016
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. The Company has adopted ASC 740-10-25 Definition of Settlement,

Significant Accounting Polici28

Significant Accounting Policies: Earnings Per Share (Policies)	9 Months Ended
	Sep. 30, 2016
Policies
Earnings Per Share	Earnings 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 September 30, 2016 there were approximately 589,713 share equivalents, as calculated, for potential conversion demand of our outstanding convertible notes.

Significant Accounting Polici29

Significant Accounting Policies: Recently Issued Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2016
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_ Accrued Ex

Accrued Liabilities: Accrued Expenses Consist Of (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Accrued Expenses Consist Of:	Accrued expenses consist of: September 30, 2016 December 31, 2015 Accrued professional fees $ 19,263 $ 5,592 Accrued interest 138,033 96,175 Accrued salaries, payroll taxes and related expenses (a) 544,188 537,171 Total accrued expenses $ 701,484 $ 638,938 (a) The Company has paid or accrued compensation to its Chief Executive Officer totaling $90,000 and $1,290,000 during the nine month periods ending September 30, 2016 and 2015, 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 compensation and related taxes, along with the estimated interest and penalties of $544,188 and $537,171 at September 30, 2016 and December 31, 2015, respectively.

Debt Obligations_ Schedule of D

Debt Obligations: Schedule of Debt (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Schedule of Debt	Schedule of Debt September 30, 2016 December 31, 2015 Convertible promissory notes, various lending institutions, maturing at variable dates ranging from 180 days to one year from origination date, 8-10% interest and in default interest of 12-22%, convertible at discount to trading price (25-50%) based on various measurements of prior trading, at face value of remaining original note principal balance, net of unamortized debt discounts attributable to derivative liabilities, and deferred financing costs in the amount of $0 and $0, respectively. Notes in default as of September 30, 2016 totaled $53,409 and *delinquency penalties have been assessed accordingly. 154,613 171,964 Total $ 154,613 $ 171,964 *Delinquency Penalties

Debt Obligations_ Summary of Co

Debt Obligations: Summary of Convertible Note Transactions (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Summary of Convertible Note Transactions:	Summary of convertible note transactions: September 30, 2016 Convertible notes, December 31 $ 171,964 Payments and adjustments (17,351) Convertible notes, September 30 $ 154,613

Derivative Liability_ Assumptio

Derivative Liability: Assumptions Used in The Derivative Valuation (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Assumptions Used in The Derivative Valuation:	Assumptions used in the derivative valuation were as follows: Weighted Average: Dividend rate 0.0% Risk-free interest rate .45% Expected lives (years) .697 Expected price volatility 569,1% Forfeiture Rate 0.0%

Derivative Liability_ Level 3 V

Derivative Liability: Level 3 Valuation Techniques (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Level 3 Valuation Techniques	Level 3 Valuation Techniques Carrying Value Level 1 Level 2 Level 3 Derivative Liabilities $ 576,757 $ - $ - $ 576,757 Total Derivative Liabilities $ 576,757 $ - $ - $ 576,757

Derivative Liability_ The Chang

Derivative Liability: The Changes in Fair Value (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
The Changes in Fair Value:	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 nine month period ending September 30, 2016: Balance, December 31, 2015 $ 485,142 Reclassification to additional paid in capital upon settlement of notes payable (23,514) Total losses realized and included in net income 115,129 Balance, September 30, 2016 $ 576,757