Ocean Thermal Energy 10-Q 14 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 27, 2016
Document and Entity Information:
Entity Registrant Name	Ocean Thermal Energy Corp
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Trading Symbol	otec
Amendment Flag	false
Entity Central Index Key	1,531,272
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		94,174,885
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

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 478,255	$ 125,029
Subscription receivable	30,000
Prepaid expenses	27,855	9,223
Other current assets		24,542
Total Current Assets	536,110	158,794
Property and Equipment
Property and equipment, net	2,941	6,573
Assets under construction	1,075,173	970,847
Property and Equipment, net	1,078,114	977,420
Total Assets	1,614,224	1,136,214
Current Liabilities
Accounts payables and accrued expense	5,431,725	5,079,984
Current portion - capital lease obligation		2,530
Notes payable - related party, net	2,886,000	507,082
Notes payable, net	300,000	300,000
Convertible note payable, net	48,287
Total Current Liabilities	8,666,012	5,889,596
Notes payable - related party, net	45,644	2,806,014
Notes payable, net	600,414	594,432
Convertible note payable, net		44,940
Total Liabilities	9,312,070	9,334,982
Commitments and Contingencies (see Note 10)
Stockholders' deficit
Preferred Stock, $0.0001 par value; 20,000,000 shares authorized, 0 and 0 shares issued and outstanding, respectively
Common stock, $0.0001 par value; 200,000,000 shares authorized, 94,161,552 and 82,623,066 shares issued and outstanding, respectively	9,416	8,262
Additional paid-in capital	44,292,999	38,796,396
Accumulated deficit	(52,000,261)	(47,003,426)
Total Stockholders' Deficiency	(7,697,846)	(8,198,768)
Total Liabilities and Stockholders' Deficit	$ 1,614,224	$ 1,136,214

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	94,161,552	82,623,066
Common stock, shares outstanding	94,161,552	82,623,066
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating Expenses
Salaries and wages	$ 280,929	$ 2,269,685	$ 905,708	$ 3,149,080
Professional fees	756,363	56,192	1,218,041	573,318
General and administrative	123,700	186,916	345,971	489,167
Impairment of assets under construction		586		6,978,457
Total Operating Expenses	1,160,992	2,513,379	2,469,720	11,190,022
Operating Loss	(1,160,992)	(2,513,379)	(2,469,720)	(11,190,022)
Other Expenses
Interest Expense	(1,820,835)	(246,224)	(2,527,115)	(592,525)
Total Other Expense	(1,820,835)	(246,224)	(2,527,115)	(592,525)
Net Loss	$ (2,981,827)	$ (2,759,603)	$ (4,996,835)	$ (11,782,547)
Total basic and diluted loss per common share	$ (0.04)	$ (0.03)	$ (0.06)	$ (0.15)
Basic and diluted weighted-average common shares outstanding	84,993,246	78,970,953	83,236,245	78,865,733

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash Flows From Operating Activities:
Net loss	$ (4,996,835)	$ (11,782,547)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	3,632	5,414
Impairment of assets under construction		6,978,457
Stock issued for services	948,200	103,700
Options issued for services		16,830
Stock issued for interest	412,374
Stock issued for compensation		1,718,700
Amortization of note payable discounts	1,642,462	274,115
Changes in assets and liabilities:
Other current assets	24,542
Prepaid expenses	(18,632)	1,462
Accounts payable	(345,708)	734,088
Accrued expenses	869,272	675,408
Net Cash Used In Operating Activities	(1,460,693)	(1,274,373)
Cash Flow From Investing Activities:
Assets under construction	(104,326)	(136,696)
Net Cash Used In Investing Activities	(104,326)	(136,696)
Cash Flows From Financing Activities:
Repayment of notes payable - related party	(5,000)	(95,000)
Proceeds from notes payable - related party	999,025	736,000
Proceeds from convertible note payable		50,000
Proceeds from issuance of common stock, net of subscription receivable	926,750	455,627
Repayment of capital lease	(2,530)	(3,436)
Net Cash Provided by Financing Activities	1,918,245	1,143,191
Net decrease in cash and cash equivalents	353,226	(267,878)
Cash and cash equivalents at beginning of year	125,029	280,708
Cash and Cash Equivalents at End of Period	478,255	12,830
Supplemental disclosure of cash flow information
Cash paid for interest expense	43,253	12,008
Cash paid for income taxes
Supplemental disclosure of non-cash investing and financing activities:
Accrued interest on related party note converted to common stock	171,823
Exercise of warrant in lieu of repayment of related-party note payable	2,000,000
Debt discount on related-party note payable and extension of warrants	$ 1,008,610

Note 1_ Basis of Presentation

Note 1: Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Notes
Note 1: Basis of Presentation	Note 1: Basis of Presentation The condensed consolidated financial statements include the accounts of the Company and our wholly owned subsidiaries. Intercompany accounts and transactions have been eliminated in consolidation. In the opinion of management, our financial statements reflect all adjustments that are of a normal recurring nature necessary for presentation of financial statements for interim periods in accordance with U.S. generally accepted accounting principles (GAAP) and with the instructions to Form 10-Q in Article 10 of SEC Regulation S-X. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. As used in this report, the terms “we,” “us,” and “our” mean Ocean Thermal Energy Corporation and our subsidiaries, unless the context indicates otherwise. We condensed or omitted certain information and footnote disclosures normally included in our annual audited financial statements, which we prepared in accordance with GAAP. The operating results for the three and nine months ended September 30, 2016, are not necessarily indicative of the results to be expected for the year. Our interim financial statements should be read in conjunction with our report on Form 10/A No. 2 filed on July 27, 2016, and our quarterly report on Form 10-Q for the quarter ended June 30, 2016.

Note 2_ Going Concern

Note 2: Going Concern	9 Months Ended
	Sep. 30, 2016
Notes
Note 2: Going Concern	Note 2: Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared on the assumption that we will continue as a going concern. As reflected in the accompanying condensed consolidated financial statements, we had a net loss of $4,996,835 and used $1,460,693 of cash in operating activities for the nine months ended September 30, 2016. We had a working capital deficiency of $8,129,902 and a stockholders’ deficit of $7,697,846 as of September 30, 2016. These factors raise substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is dependent on our ability to increase sales and obtain external funding for our project development. The financial statements do not include any adjustments that may result from the outcome of this uncertainty.

Note 3_ Income Taxes

Note 3: Income Taxes	9 Months Ended
	Sep. 30, 2016
Notes
Note 3: Income Taxes	Note 3: Income Taxes No income tax expense was recognized for the three- and nine-month periods ended September 30, 2016 and 2015, due to net losses being incurred in these periods. We are subject to audit by the Internal Revenue Service, various states, and foreign jurisdictions for the prior three years. There has not been a change in our unrecognized tax positions since December 31, 2015, and we do not believe there will be any material changes in our unrecognized tax positions over the next 12 months. Our policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of income tax expense. We do not have any accrued interest or penalties associated with any unrecognized tax benefits, and no interest expense related to unrecognized tax benefits was recognized during the nine months ended September 30, 2016.

Note 4_ Fair Value of Financial

Note 4: Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2016
Notes
Note 4: Fair Value of Financial Instruments	Note 4: Fair Value of Financial Instruments The accounting standard for fair value measurements provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. Fair value is defined as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. The accounting standard establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required as well as the assets and liabilities that we value using those levels of inputs. Level 1 Level 2 Level 3 A review of fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification for certain financial assets or liabilities. We did not have any significant nonfinancial assets or nonfinancial liabilities that would be recognized or disclosed at fair value on a recurring basis as of September 30, 2016, nor did we have any assets or liabilities measured at fair value on a nonrecurring basis to report in the first nine months of 2016.

Note 5_ Net Loss Per Common Sha

Note 5: Net Loss Per Common Share	9 Months Ended
	Sep. 30, 2016
Notes
Note 5: Net Loss Per Common Share	Note 5: Net Loss per Common Share Basic earnings per share is computed by dividing the net income applicable to common shares by the weighted average number of common shares outstanding. We recorded a net loss for each of the three- and nine-month periods ended September 30, 2016 and 2015, so there are no diluted earnings per share calculated for those periods. Basic and diluted earnings per share were essentially the same for all periods presented. We had 16,112,210 and 22,878,360 shares issuable upon the exercise of warrants and options and 205,667 shares issuable upon the conversion of green energy bonds and notes that were not included in the computation of dilutive loss per share because their inclusion is antidilutive for the interim periods ended September 30, 2016 and 2015, respectively.

Note 6_ Recent Accounting Prono

Note 6: Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
Notes
Note 6: Recent Accounting Pronouncements	Note 6: Recent Accounting Pronouncements In August 2016, the Financial Accounting Standards Board issued Accounting Standard Update 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. We have reviewed all recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on our consolidated results of operations, financial position, and cash flows. Based on that review, we believe that none of these pronouncements will have a significant effect on current or future earnings or operations.

Note 7_ Business Segments

Note 7: Business Segments	9 Months Ended
	Sep. 30, 2016
Notes
Note 7: Business Segments	Note 7: Business Segments We conduct operations in various foreign jurisdictions that use our technology. Our segments are based on the location of their operations. The U.S. territories segment consists of operations in the U.S. Virgin Islands and Guam; the Bahamas segment consists of operations specific to the Bahamas; and the other segment currently consists of operations in the Cayman Islands. Direct revenues and costs, depreciation, depletion, and amortization costs, general and administrative costs, and other income directly associated with their respective segments are detailed within the following discussion. Identifiable net property and equipment are reported by business segment for management reporting and reportable business segment disclosure purposes. Current assets, other assets, current liabilities, and long-term debt are not allocated to business segments for management reporting or business segment disclosure purposes. Reportable business segment information for the nine months ended September 30, 2016, and as of September 30, 2016, is as follows (in thousands): U.S. Territories Bahama s Other Non-Segmented Total Nine months ended September 30, 2016: Revenues $ - $ - $ - $ - $ - Net loss - - - (4,997)(1) (4,997) As of September 30, 2016: Assets under construction 756 270 49 - 1,075 Additions to assets under construction 78 26 - - 104 _______________ (1) Nonsegmented reconciling items for the first nine months include $2,470 of operating costs and $2,527 of interest expense. Reportable business segment information for the nine months ended September 30, 2015, and as of September 30, 2015, is as follows (in thousands): U.S. Territories Bahama s Other Non-Segmented Total Nine months ended September 30, 2015: Revenues $ - $ - $ - $ - $ - Net loss - (6,978) - (4,805)(1) (11,783) As of September 30, 2015: Assets under construction 678 244 49 - 971 Additions to assets under construction 137 - - - 137 _______________ (1) Nonsegmented reconciling items for the first nine months include $4,211 of operating costs and $593 of interest expense.

Note 8_ Notes Payable

Note 8: Notes Payable	9 Months Ended
	Sep. 30, 2016
Notes
Note 8: Notes Payable	Note 8: Notes Payable The following convertible note and notes payable were outstanding at September 30, 2016: Principal at Discount at Carrying Amount Date of Maturity September 30, September 30, at September 30, Related Party Non Related Party Issuance Date Interest Rate Original Principal 2016 2016 2016 Current Long-Term Current Long-Term 02/03/12 02/03/17 10.00% $ 1,000,000 $ 1,000,000 $ - $ 1,000,000 $ 1,000,000 $ - $ - $ - 08/15/13 10/31/23 10.00% 525,000 525,000 45,742 479,258 - 45,644 - 433,614 12/31/13 12/31/15 8.00% 290,000 130,000 - 130,000 130,000 - - - 04/16/14 04/30/19 9.86% 6,000 6,000 - 6,000 - - - 6,000 05/09/14 04/30/19 9.86% 50,400 50,400 - 50,400 - - - 50,400 05/28/14 04/30/19 9.86% 25,200 25,200 - 25,200 - - - 25,200 04/01/14 01/31/17 10.00% 2,265,000 1,756,000 - 1,756,000 1,756,000 - - - 07/21/14 12/31/19 9.86% 78,000 78,000 - 78,000 - - - 78,000 08/18/14 12/31/19 7.86% 7,200 7,200 - 7,200 - - - 7,200 12/22/14 03/31/15 12.00% 200,000 200,000 - 200,000 - - 200,000 - 12/26/14 12/26/15 12.00% 100,000 100,000 100,000 - 100,000 - 04/09/15 04/09/17 10.00% 50,000 50,000 1,713 48,287 - - 48,287 Total $ 4,596,800 $ 3,927,800 $ 47,455 $ 3,880,345 $ 2,886,000 $ 45,644 $ 348,287 $ 600,414

Note 9_ Stockholders' Equity

Note 9: Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Notes
Note 9: Stockholders' Equity	Note 9: Stockholders’ Equity Common Stock For the nine months ended September 30, 2016, individuals exercised Series E warrants to purchase 1,380,000 shares of common stock at a price of $0.50 per share for cash totaling $690,000. These warrants were related to the Broadband Network Affiliates, Inc. (“BBNA”) merger. Individuals also exercised Series D warrants to purchase 355,666 shares of common stock at a price of $0.75 per share for cash totaling $236,750 and a subscription receivable of $30,000. The subscription receivable was collected on October 21, 2016. These warrants were also related to BBNA merger. For the nine months ended September 30, 2016, we issued 1,115,529 shares of common stock for services performed with a fair value of $948,200 ($0.85 per share). The note holder exercised a warrant to purchase 8,000,000 shares of common stock with an exercise price of $0.25 in lieu of repayment of $2,000,000 of note payable. The note holder also converted $171,823 of accrued interest into 687,291 shares of common stock with a fair value of $584,197 ($0.85 per share). Warrants and Options The following table summarizes all warrants outstanding and exercisable for the period ended September 30, 2016: Warrants Number of Warrants Weighted Average Exercise Price Balance at December 31, 2015 22,227,876 $0.64 Granted 3,520,000 0.25 Exercised (9,735,666) 0.38 Balance at September 30, 2016 16,012,210 0.76 The following table summarizes all options outstanding and exercisable for the period ended September 30, 2016: Options Number of Options Weighted Average Exercise Price Balance at December 31, 2015 100,000 $0.75 Balance at September 30, 2016 100,000 0.75

Note 10_ Commitments and Contin

Note 10: Commitments and Contingencies	9 Months Ended
	Sep. 30, 2016
Notes
Note 10: Commitments and Contingencies	Note 10: Commitments and Contingencies From time to time, we are involved in legal proceedings and regulatory proceedings arising from operations. We establish reserves for specific liabilities in connection with legal actions that management deems to be probable and estimable. We are not currently a party to any proceeding, the adverse outcome of which would have a material adverse effect on our financial position or results of operations.

Note 11_ Related-party Transact

Note 11: Related-party Transactions	9 Months Ended
	Sep. 30, 2016
Notes
Note 11: Related-party Transactions	Note 11: Related-Party Transactions For the nine months ended September 30, 2016, we paid rent of $45,000 to a company controlled by our chief executive officer under an operating lease agreement. During the nine months ended September 30, 2016, we repaid $5,000 on a loan, which now totals $1,756,000, to a company controlled by our chief executive officer. During 2015, a private venture fund, in which our chief executive officer is an officer and director, agreed to provide up to $1,000,000 in working capital. During the nine months ended September 30, 2016, the note holder agreed to amend the note to increase the working capital loan to up to $2,000,000, and we agreed to increase the warrant to up to 8,000,000 shares. For the nine months ended September 30, 2016, additional loans of $999,025 were made to us by the private venture fund, resulting in a principal balance of $2,000,000 and $171,823 in accrued interest. The note holder exercised a warrant to purchase 8,000,000 shares of common stock with an exercise price of $0.25 in lieu of repayment of $2,000,000 of the note payable. The note holder also converted $171,823 of accrued interest into 687,291 shares of common stock with a fair value of $584,197 ($0.85 per share).

Note 12_ Subsequent Events

Note 12: Subsequent Events	9 Months Ended
	Sep. 30, 2016
Notes
Note 12: Subsequent Events	Note 12: Subsequent Events Subsequent to September 30, 2016, Series D warrants to purchase 100,000 shares of common stock were exercised at a price of $0.75 per share, for cash totaling $75,000.

Note 7_ Business Segments (Tabl

Note 7: Business Segments (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Schedule of Segment Reporting Information, by Segment	Reportable business segment information for the nine months ended September 30, 2016, and as of September 30, 2016, is as follows (in thousands): U.S. Territories Bahama s Other Non-Segmented Total Nine months ended September 30, 2016: Revenues $ - $ - $ - $ - $ - Net loss - - - (4,997)(1) (4,997) As of September 30, 2016: Assets under construction 756 270 49 - 1,075 Additions to assets under construction 78 26 - - 104 _______________ (1) Nonsegmented reconciling items for the first nine months include $2,470 of operating costs and $2,527 of interest expense. Reportable business segment information for the nine months ended September 30, 2015, and as of September 30, 2015, is as follows (in thousands): U.S. Territories Bahama s Other Non-Segmented Total Nine months ended September 30, 2015: Revenues $ - $ - $ - $ - $ - Net loss - (6,978) - (4,805)(1) (11,783) As of September 30, 2015: Assets under construction 678 244 49 - 971 Additions to assets under construction 137 - - - 137 _______________ (1) Nonsegmented reconciling items for the first nine months include $4,211 of operating costs and $593 of interest expense.

Note 8_ Notes Payable (Tables)

Note 8: Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Schedule of Convertible Note and Notes Payable	The following convertible note and notes payable were outstanding at September 30, 2016: Principal at Discount at Carrying Amount Date of Maturity September 30, September 30, at September 30, Related Party Non Related Party Issuance Date Interest Rate Original Principal 2016 2016 2016 Current Long-Term Current Long-Term 02/03/12 02/03/17 10.00% $ 1,000,000 $ 1,000,000 $ - $ 1,000,000 $ 1,000,000 $ - $ - $ - 08/15/13 10/31/23 10.00% 525,000 525,000 45,742 479,258 - 45,644 - 433,614 12/31/13 12/31/15 8.00% 290,000 130,000 - 130,000 130,000 - - - 04/16/14 04/30/19 9.86% 6,000 6,000 - 6,000 - - - 6,000 05/09/14 04/30/19 9.86% 50,400 50,400 - 50,400 - - - 50,400 05/28/14 04/30/19 9.86% 25,200 25,200 - 25,200 - - - 25,200 04/01/14 01/31/17 10.00% 2,265,000 1,756,000 - 1,756,000 1,756,000 - - - 07/21/14 12/31/19 9.86% 78,000 78,000 - 78,000 - - - 78,000 08/18/14 12/31/19 7.86% 7,200 7,200 - 7,200 - - - 7,200 12/22/14 03/31/15 12.00% 200,000 200,000 - 200,000 - - 200,000 - 12/26/14 12/26/15 12.00% 100,000 100,000 100,000 - 100,000 - 04/09/15 04/09/17 10.00% 50,000 50,000 1,713 48,287 - - 48,287 Total $ 4,596,800 $ 3,927,800 $ 47,455 $ 3,880,345 $ 2,886,000 $ 45,644 $ 348,287 $ 600,414

Note 9_ Stockholders' Equity (T

Note 9: Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Tables/Schedules
Schedule of Warrants	The following table summarizes all warrants outstanding and exercisable for the period ended September 30, 2016: Warrants Number of Warrants Weighted Average Exercise Price Balance at December 31, 2015 22,227,876 $0.64 Granted 3,520,000 0.25 Exercised (9,735,666) 0.38 Balance at September 30, 2016 16,012,210 0.76
Schedule of Stock Options	The following table summarizes all options outstanding and exercisable for the period ended September 30, 2016: Options Number of Options Weighted Average Exercise Price Balance at December 31, 2015 100,000 $0.75 Balance at September 30, 2016 100,000 0.75

Note 2_ Going Concern (Details)

Note 2: Going Concern (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Details
Net loss	$ (2,981,827)	$ (2,759,603)	$ (4,996,835)	$ (11,782,547)
Net Cash Used In Operating Activities			(1,460,693)	$ (1,274,373)
Working capital (deficit)			(8,129,902)
Total Stockholders' Deficiency	$ (7,697,846)		$ (7,697,846)		$ (8,198,768)

Note 3_ Income Taxes (Details)

Note 3: Income Taxes (Details) - USD ($)	3 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Details
Income Tax Expense (Benefit)	$ 0	$ 0

Note 5_ Net Loss Per Common S23

Note 5: Net Loss Per Common Share (Details) - shares	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Warrants and Options
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	16,112,210	22,878,360
Green Energy Bonds and Notes
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	205,667

Note 7_ Business Segments_ Sche

Note 7: Business Segments: Schedule of Segment Reporting Information, by Segment (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Revenues			$ 0	$ 0
Net loss	$ (2,981,827)	$ (2,759,603)	(4,996,835)	(11,782,547)
Assets under construction	1,075,173	971,000	1,075,173	971,000	$ 970,847
Additions to assets under construction			104,326	136,696
Total Operating Expenses	1,160,992	2,513,379	2,469,720	11,190,022
Interest Expense	1,820,835	246,224	2,527,115	592,525
US Territories
Revenues			0	0
Net loss			0	0
Assets under construction	756,000	678,000	756,000	678,000
Additions to assets under construction			78,000	137,000
Bahamas
Revenues			0	0
Net loss			0	(6,978,000)
Assets under construction	270,000	244,000	270,000	244,000
Additions to assets under construction			26,000	0
Other
Revenues			0	0
Net loss			0	0
Assets under construction	49,000	49,000	49,000	49,000
Additions to assets under construction			0	0
Non-Segmented
Revenues			0	0
Net loss			(4,997,000)	(4,805,000)
Assets under construction	$ 0	$ 0	0	0
Additions to assets under construction			0	0
Total Operating Expenses			2,470	4,211
Interest Expense			$ 2,527	$ 593

Note 8_ Notes Payable_ Schedule

Note 8: Notes Payable: Schedule of Convertible Note and Notes Payable (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Jun. 30, 2016	Dec. 31, 2015
Related Party, Current	$ 2,886,000		$ 507,082
Related Party, Long-Term	$ 45,644		$ 2,806,014
Note Payable 1
Date of Issuance	Feb. 3, 2012
Maturity Date	Feb. 3, 2017
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Original Principal	$ 1,000,000
Principal	1,000,000
Discount	0
Carrying Amount	1,000,000
Related Party, Current	1,000,000
Related Party, Long-Term		$ 0
Non Related Party, Current	0
Non Related Party, Long-Term	$ 0
Note Payable 2
Date of Issuance	Aug. 15, 2013
Maturity Date	Oct. 31, 2023
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Original Principal	$ 525,000
Principal	525,000
Discount	45,742
Carrying Amount	479,258
Related Party, Current	0
Related Party, Long-Term		$ 45,644
Non Related Party, Current	0
Non Related Party, Long-Term	$ 433,614
Note Payable 3
Date of Issuance	Dec. 31, 2013
Maturity Date	Dec. 31, 2015
Debt Instrument, Interest Rate, Stated Percentage	8.00%
Original Principal	$ 290,000
Principal	130,000
Discount	0
Carrying Amount	130,000
Related Party, Current	130,000
Related Party, Long-Term	0
Non Related Party, Current	0
Non Related Party, Long-Term	$ 0
Note Payable 4
Date of Issuance	Apr. 16, 2014
Maturity Date	Apr. 30, 2019
Debt Instrument, Interest Rate, Stated Percentage	9.86%
Original Principal	$ 6,000
Principal	6,000
Discount	0
Carrying Amount	6,000
Related Party, Current	0
Related Party, Long-Term	0
Non Related Party, Current	0
Non Related Party, Long-Term	$ 6,000
Note Payable 5
Date of Issuance	May 9, 2014
Maturity Date	Apr. 30, 2019
Debt Instrument, Interest Rate, Stated Percentage	9.86%
Original Principal	$ 50,400
Principal	50,400
Discount	0
Carrying Amount	50,400
Related Party, Current	0
Related Party, Long-Term	0
Non Related Party, Current	0
Non Related Party, Long-Term	$ 50,400
Note Payable 6
Date of Issuance	May 28, 2014
Maturity Date	Apr. 30, 2019
Debt Instrument, Interest Rate, Stated Percentage	9.86%
Original Principal	$ 25,200
Principal	25,200
Discount	0
Carrying Amount	25,200
Related Party, Current	0
Related Party, Long-Term	0
Non Related Party, Current	0
Non Related Party, Long-Term	$ 25,200
Note Payable 7
Date of Issuance	Apr. 1, 2014
Maturity Date	Jan. 31, 2017
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Original Principal	$ 2,265,000
Principal	1,756,000
Discount	0
Carrying Amount	1,756,000
Related Party, Current	1,756,000
Related Party, Long-Term	0
Non Related Party, Current	0
Non Related Party, Long-Term	$ 0
Note Payable 8
Date of Issuance	Jul. 21, 2014
Maturity Date	Dec. 31, 2019
Debt Instrument, Interest Rate, Stated Percentage	9.86%
Original Principal	$ 78,000
Principal	78,000
Discount	0
Carrying Amount	78,000
Related Party, Current	0
Related Party, Long-Term	0
Non Related Party, Current	0
Non Related Party, Long-Term	$ 78,000
Note Payable 9
Date of Issuance	Aug. 18, 2014
Maturity Date	Dec. 31, 2019
Debt Instrument, Interest Rate, Stated Percentage	7.86%
Original Principal	$ 7,200
Principal	7,200
Discount	0
Carrying Amount	7,200
Related Party, Current	0
Related Party, Long-Term	0
Non Related Party, Current	0
Non Related Party, Long-Term	$ 7,200
Note Payable 10
Date of Issuance	Dec. 22, 2014
Maturity Date	Mar. 31, 2015
Debt Instrument, Interest Rate, Stated Percentage	12.00%
Original Principal	$ 200,000
Principal	200,000
Discount	0
Carrying Amount	200,000
Related Party, Current	0
Related Party, Long-Term	0
Non Related Party, Current	200,000
Non Related Party, Long-Term	$ 0
Note Payable 11
Date of Issuance	Dec. 26, 2014
Maturity Date	Dec. 26, 2015
Debt Instrument, Interest Rate, Stated Percentage	12.00%
Original Principal	$ 100,000
Principal	100,000
Carrying Amount	100,000
Related Party, Long-Term	0
Non Related Party, Current	100,000
Non Related Party, Long-Term	$ 0
Note Payable 12
Date of Issuance	Apr. 9, 2015
Maturity Date	Apr. 9, 2017
Debt Instrument, Interest Rate, Stated Percentage	10.00%
Original Principal	$ 50,000
Principal	50,000
Discount	1,713
Carrying Amount	48,287
Related Party, Current	0
Related Party, Long-Term	0
Non Related Party, Current	48,287
NotePayable Total
Original Principal	4,596,800
Principal	3,927,800
Discount	47,455
Carrying Amount	3,880,345
Related Party, Current	2,886,000
Related Party, Long-Term	45,644
Non Related Party, Current	348,287
Non Related Party, Long-Term	$ 600,414

Note 9_ Stockholders' Equity (D

Note 9: Stockholders' Equity (Details) - Common Stock	9 Months Ended
	Sep. 30, 2016USD ($)$ / sharesshares
Stock Issued During Period, Shares, Issued for Services | shares	1,115,529
Stock Issued During Period, Value, Issued for Services	$ 948,200
Warrant Exercise 1
Stock Issued During Period, Shares, New Issues | shares	1,380,000
Shares Issued, Price Per Share | $ / shares	$ 0.50
Stock Issued During Period, Value, New Issues	$ 690,000
Warrant Exercise 2
Stock Issued During Period, Shares, New Issues | shares	355,666
Shares Issued, Price Per Share | $ / shares	$ 0.75
Stock Issued During Period, Value, New Issues	$ 236,750
Subscription receivable	$ 30,000
Services
Shares Issued, Price Per Share | $ / shares	$ 0.85
Warrant Exercise 3 | Note Payable 14 | Principal
Stock Issued During Period, Shares, New Issues | shares	8,000,000
Shares Issued, Price Per Share | $ / shares	$ 0.25
Original Principal	$ 2,000,000
Warrant Exercise 3 | Note Payable 14 | Accrued Interests
Stock Issued During Period, Shares, New Issues | shares	687,291
Stock Issued During Period, Value, New Issues	$ 171,823
Fair value	$ 584,197
Share Price | $ / shares	$ 0.85

Note 9_ Stockholders' Equity_ S

Note 9: Stockholders' Equity: Schedule of Warrants (Details) - Warrant	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Outstanding, Beginning Balance | shares	22,227,876
Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0.64
Granted | shares	3,520,000
Granted, Weighted Average Exercise Price | $ / shares	$ 0.25
Exercised | shares	(9,735,666)
Exercised, Weighted Average Exercise Price | $ / shares	$ 0.38
Outstanding, Ending Balance | shares	16,012,210
Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 0.76

Note 9_ Stockholders' Equity_28

Note 9: Stockholders' Equity: Schedule of Stock Options (Details) - Employee Stock Option	Sep. 30, 2016$ / sharesshares
Outstanding, Beginning Balance | shares	100,000
Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares	$ 0.75
Outstanding, Ending Balance | shares	100,000
Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares	$ 0.75

Note 11_ Related-party Transa29

Note 11: Related-party Transactions (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Notes payable - related party, net	$ 2,886,000	$ 507,082
Private Venture Fund | Principal
Original Principal	2,000,000
Private Venture Fund | Accrued Interests
Original Principal	171,823
Note Payable 15
Line of Credit Facility, Maximum Borrowing Capacity	2,000,000
Note Payable 15 | Warrant4Member
Class of Warrant or Right, Outstanding		8,000,000
Note Payable 16
Proceeds from Notes Payable	999,025
Note Payable 1
Notes payable - related party, net	1,000,000
Original Principal	1,000,000
Note Payable 1 | Common Stock | Principal | Warrant Exercise 3
Original Principal	$ 2,000,000
Stock Issued During Period, Shares, New Issues	8,000,000
Shares Issued, Price Per Share	$ 0.25
Note Payable 1 | Common Stock | Accrued Interests | Warrant Exercise 3
Stock Issued During Period, Shares, New Issues	687,291
Stock Issued During Period, Value, New Issues	$ 171,823
Fair value	$ 584,197
Share Price	$ 0.85
Chief Executive Officer
Operating Leases, Rent Expense	$ 45,000
Repayments of Debt	5,000
Notes payable - related party, net	$ 1,756,000

Note 12_ Subsequent Events (Det

Note 12: Subsequent Events (Details) - Subsequent Event - Series D	Oct. 01, 2016USD ($)$ / sharesshares
Stock Issued During Period, Shares, New Issues | shares	100,000
Shares Issued, Price Per Share | $ / shares	$ 0.75
Stock Issued During Period, Value, New Issues | $	$ 75,000