Sincerity Applied Materials (SINC) 10-Q 21 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 14, 2017
Document and Entity Information:
Entity Registrant Name	Sincerity Applied Materials Holdings Corp.
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Entity Central Index Key	1,532,595
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		3,122,287
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current assets
Cash	$ 0	$ 9,677
Prepaid expenses and other current assets	0	32,544
Total current assets	0	42,221
Investments in associated companies	0	1,095
Total Assets	0	43,316
Current Liabilities
Accounts payable	0	16,515
Accrued expenses and other current liabilities	14,633	37,077
Total current liabilities	14,633	53,592
Total Liabilities	14,633	53,592
Commitments
Stockholders' (Deficiency) Equity
Preferred stock: Authorized: $0.001 par value, 10,000,000 shares authorized Issued and outstanding: nil preferred shares	0	0
Common stock: Authorized: $0.001 par value, 290,000,000 shares authorized Issued and outstanding: 3,122,287 and 3,122,287, respectively	3,122	3,122
Additional paid-in capital	8,567,576	8,471,499
Accumulated deficit	(8,585,331)	(8,484,897)
Total stockholders' deficiency	(14,633)	(10,276)
Total liabilities and stockholders' deficiency	$ 0	$ 43,316

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Preferred Stock, par value	$ 0.001	$ 0.001
Preferred Stock, shares authorized	10,000,000	10,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, par value	$ 0.001	$ 0.001
Common Stock, shares authorized	290,000,000	290,000,000
Common Stock, shares issued	3,122,287	3,122,287
Common Stock, shares outstanding	3,122,287	3,122,287

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues
Crowdfunding	$ 0	$ 43,549	$ 0	$ 129,642
The Funding Network	0	2,249	0	14,299
Other	0	12,158	0	3,309
Total revenues	0	57,956	0	147,250
Operating Expenses
Selling, general and administrative	4,400	401,227	14,876	916,137
Professional fees	6,760	130,554	93,334	267,589
Research and development costs	0	9,540	0	26,658
Depreciation and amortization	0	37,760	0	74,579
Bad debt expense (recoveries)	0	(10,145)	0	(29,737)
Impairment expense	0	740,073	0	740,073
Total operating expenses	11,160	1,309,009	108,210	1,995,299
Operating loss	(11,160)	(1,251,053)	(108,210)	(1,848,049)
Other Income (Expense)
Interest expense and amortization of debt discount	0	(81,905)	0	(155,171)
Gain on sale of Equidam Holding B.V.	0	0	14,799	0
Other income	0	484	0	455
Other expense	(114)	(2,986)	(7,023)	(2,986)
Total other income (expense)	(114)	(84,407)	7,776	(157,702)
Net Loss	(11,274)	(1,335,460)	(100,434)	(2,005,751)
Net loss attributable to noncontrolling interests	0	(6,317)	0	(13,940)
Net loss attributable to Symbid Corp. stockholders	$ (11,274)	$ (1,329,143)	$ (100,434)	$ (1,991,811)
Basic and diluted net loss per common share	$ 0	$ (2.15)	$ (0.03)	$ (3.23)
Weighted average number of shares outstanding
Basic and diluted	3,122,287	618,659	3,122,287	616,908
Share based compensation expense included in operating expenses:
Selling, general and administrative	$ 0	$ 5,239	$ 0	$ 47,578
Research and development costs	0	(2,500)	0	(942)
Share-based compensation expense included in operating expenses	$ 0	$ 2,739	$ 0	$ 46,636

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Condensed Consolidated Statements Of Comprehensive Loss
Net loss	$ (11,274)	$ (1,335,460)	$ (100,434)	$ (2,005,751)
Other comprehensive loss:
Foreign currency translation income (loss)	0	(5,438)	0	26,829
Comprehensive loss	(11,274)	(1,340,898)	(100,434)	(1,978,922)
Net loss attributable to noncontrolling interests	0	(6,317)	0	(13,940)
Foreign currency translation loss attributable to noncontrolling interests	0	1,284	0	(1,566)
Comprehensive loss attributable to noncontrolling interests	0	(5,033)	0	(15,506)
Comprehensive loss attributable to Symbid Corp. stockholders	$ (11,274)	$ (1,335,865)	$ (100,434)	$ (1,963,416)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities
Net Loss	$ (100,434)	$ (2,005,751)
Adjustments to reconcile net loss to net cash used in operating activities
Expenses paid by CKR under SPA	96,078	0
Gain on sale of Equidam Holding B.V.	(14,799)	0
Employee and non-employee share based compensation	0	46,636
Depreciation and amortization	0	74,579
Amortization of debt discount	0	93,441
Impairment of intangible asset	0	740,073
Provision for doubtful accounts	0	(29,737)
Loss on liquidation of Symbid Italia	0	2,986
Changes in assets and liabilities
Accounts receivable	0	24,922
Prepaid expenses and other current assets	29,769	(42,418)
Accounts payable	(16,879)	67,004
Accrued expenses and other current liabilities	(19,522)	14,673
Net cash used in operating activities	(25,787)	(1,013,592)
Cash flows from investing activities
Proceeds from sale of Equidam Holding B.V.	15,902	0
Net payment from liquidation of Symbid Italia	0	(44,744)
Acquisition of property and equipment	0	(5,784)
Net cash provided by (used in) investing activities	15,902	(50,528)
Cash flows from financing activities
Repayments of notes payable	0	(8,441)
Proceeds from convertible notes	0	550,000
Net cash provided by financing activities	0	541,559
Effect of exchange rate changes on cash	208	4,333
Net decrease in cash	(9,677)	(518,228)
Cash and cash equivalents, beginning of period	9,677	553,696
Cash and cash equivalents, end of period	0	35,468
Supplemental cash flow disclosures
Interest paid	0	2,699
Non-cash investing and financing activities
Change in accrued expenses related to non-employee share based payments	0	85,274
Deconsolidatioin of Symbid Italia assets	0	5,901
Beneficial conversion feature	$ 0	$ 550,000

1. BUSINESS, ORGANIZATION AND L

1. BUSINESS, ORGANIZATION AND LIQUIDITY	6 Months Ended
	Jun. 30, 2017
Nature of Operations and Continuance of Business
1. BUSINESS, ORGANIZATION AND LIQUIDITY	Interim Consolidated Financial Statements The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conformity with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to such rules and regulations. However, we believe that the disclosures included in these financial statements are adequate to make the information presented not misleading. The unaudited condensed consolidated financial statements included in this document have been prepared on the same basis as the annual consolidated financial statements, and in our opinion reflect all adjustments, which include normal recurring adjustments necessary for a fair presentation in accordance with GAAP and SEC regulations for interim financial statements. The results for the three and six months ended June 30, 2017 are not necessarily indicative of the results that we will have for any subsequent period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes to those statements for the year ended December 31, 2016 included in our Annual Report on Form 10-K. Reverse Split In May 2017, the Company’s sole member of the Board of Directors and the holders of 80% of the outstanding voting stock approved an amendment to the Company’s articles of incorporation to effect a reverse split of the Company’s issued and outstanding common stock at a 60-to-1 ratio, which was effected on June 9, 2017. The par value and authorized shares of common stock and convertible preferred stock were not adjusted as a result of the reverse split. No fractional shares were issued as a result of the reverse split which resulted in a upward rounding adjustment of 131 post-split shares. All issued and outstanding common stock and per share amounts contained in the financial statements have been retroactively adjusted to reflect the reverse stock split for all periods presented. Acquisition Agreement On June 5, 2017, the Company entered into an Acquisition Agreement (the “Acquisition Agreement”), with Sincerity Australia Pty Ltd, an Australia corporation (“SAPL”) and the sole shareholder/member of SAPL (the “SAPL Shareholder”), as a result of which the Company plans to acquire SAPL in a reverse merger transaction under which SAPL will continue its existing business operations. SAPL is an Australia based supplier of high technology plastic based solutions for the packaging industry. See Note 8 for additional information on the Acquisition Agreement. Business and Organization Sincerity Applied Materials Holdings Corp. (the “Company”) was incorporated as HapyKidz.com, Inc. in the state of Nevada on July 29, 2011. On September 4, 2013, the Company filed a Certificate of Amendment to the Articles of Incorporation with the Nevada Secretary of State to change the Company’s name from HapyKidz.com, Inc. to Symbid Corp. On June 9, 2017, the Company further amended its Articles of Incorporation to change the Company’s name from Symbid Corp. to Sincerity Applied Materials Holdings Corp. Symbid Holding B.V. (“Symbid Holding”) was incorporated on October 3, 2013 organized under the laws of the Netherlands. Symbid Holding was organized to serve as the holding company for all of the Company’s business activities in the Netherlands and in other countries. As such, on October 3, 2013, the holders of the capital shares of Symbid B.V. exchanged their shares for capital shares of Symbid Holding and, as a result, Symbid B.V. became a wholly owned subsidiary of Symbid Holding. Symbid B.V. was the operating entity for the Company’s business in the Netherlands through November 1, 2016. On December 6, 2013, the Company closed a Share Exchange pursuant to which the 19 shareholders of Symbid Holding B.V. sold all of their capital stock in Symbid Holding B.V. to the Company in exchange for 21,170,000 shares of our common stock, $0.001 par value per share. Because the Company had no operations at the time of the acquisition of Symbid Holding, Symbid Holding is considered to be the predecessor Company for financial reporting purposes. The Share Exchange was accounted for as a “reverse acquisition,” and Symbid Holding was deemed to be the acquirer. Consequently, the assets and liabilities and the historical operations reflected in the financial statements prior to the Share Exchange are those of Symbid Holding and are recorded at the historical cost basis of Symbid Holding. The consolidated financial statements after completion of the Share Exchange include the assets and liabilities of Symbid Holding, historical operations of Symbid Holding and operations of the Company and its subsidiaries from the Closing Date of the Share Exchange. As a result of the issuance of the shares of our common stock pursuant to the Share Exchange, a change in control occurred as of the date of consummation of the Share Exchange. The main operating entity of the Company was Symbid B.V. (“Symbid B.V.”), incorporated in Utrecht, The Netherlands on March 29, 2011 under the laws of the Netherlands. The Company was launched in April 2011 and its headquarters was based in Rotterdam, The Netherlands as one of the first equity based crowdfunding forerunners worldwide. Entrepreneurs used Symbid to obtain business growth funding from the crowd in exchange for a part of the equity of their company. Investors could participate for as little as $21, and become shareholders of start-up companies or growing businesses in need of capital. Founded as the provider of one of the first equity based crowdfunding platforms, the business evolved in 2015 into a fully integrated, data driven, user friendly online funding network consisting of several products and services known as The Funding Network™. The Funding Network™ is intended to give SMEs direct access to all forms of finance, while offering investors full transparency on the potential risks and return of their portfolios and was developed in response to the following funding hurdles affecting entrepreneurs and investors in general and SMEs in particular: ● Limited or no structured distribution channels for SME finance other than banks, increasing the mismatch between entrepreneurs and financiers; ● No centralized platform for (alternative) financiers, making it difficult and inefficient to find the right financier at the right time; ● No standardized data protocols for SME data, leading to costly and time-intensive (offline) screening and monitoring; ● Limited financial skills of entrepreneurs leading to unnecessary inefficiencies and obstacles within the financing process; and ● Decline in bank financing due to new regulations and recent financial crises, leaving a vacuum in the life cycle of SME financing. On June 8, 2017 we dissolved our direct, wholly owned subsidiary, Symbid Holding B.V. and our indirect wholly owned subsidiaries, Symbid B.V. and FAC B.V. At the time of dissolution, none of these entities had any material assets or operations and none of these entities were generating revenues. Following such dissolutions, we have no subsidiaries. We are presently a “shell company” as defined in Rule 144(i)(1) and Rule 405 under the Securities Act of 1933, as amended. Refer to the restructuring and liquidity sections below for more information on the change in business model that took place during the second half of 2016. As of December 31, 2016, the Company had a 7.57% ownership interest in Kredietpaspoort Coöperatie U.A. (“Kredietpaspoort”), a Cooperative located in the Netherlands, through its wholly owned subsidiary Symbid B.V. The Kredietpaspoort is a cloud- based platform that was developed to provide credit evaluation and financing options to SME companies in the Netherlands. As of June 30, 2017, the shares in Kredietpaspoort were cancelled and the Company’s interest has been reduced to zero (See Note 4). The Company sold its interest in Equidam Holding B.V. (“Equidam”) on March 6, 2017 for $15,902 and recognized a gain of $14,799 on the sale of the investment. As of December 31, 2016, the Company held a 7% ownership interest in Equidam. Equidam started as an online valuation tool for private companies with a focus on SME’s, Equidam now also offers simple monitoring services to investors on the Company’s platform. Restructuring During the second half of 2016, the Company was unable to raise additional capital from investors and was forced to enter settlement agreements with its creditors and note holders to restructure the Company. Because of the restructuring, the Company curtailed certain operations and changed its business focus from the operation of online funding platforms and the provision of software solutions for SMEs in the alternative financing market to the licensing of available software packages that the Company owns and licenses intellectual property. As the result of the restructuring, the Company’s crowdfunding platform in the Netherlands is now operated through Symbid Coop. The Company previously controlled and operated Symbid Coop through corporate governance but as the result of the restructuring, Symbid Coop has become an independent entity. Because the Company no longer has the resources to continue the software development of the online funding platform, Symbid Coop took over the development of software for the crowdfunding platform during the fourth quarter of 2016 in order to remain compliant under the laws and regulations of The Netherlands. Symbid Coop has, in return for reimbursing the further development of the software, been granted a non-exclusive license to the intellectual property from IP Foundation in order to continue crowdfunding operations in The Netherlands. The Company will continue to hold an identical non-exclusive license to the intellectual property of the crowdfunding platform whereby we will be allowed to use the most up to date versions of the software and other intellectual property. The revised business model requires fewer employees, advisors and consultants and is more economical to operate. The Company has developed several software products suitable for the alternative market which it will continue to offer to third parties. Such products and related services include white label versions of crowdfunding software for investor groups and monitoring software to provide investors with ongoing insight into the performance of SMEs to which they have loaned money. Related licensing fees and subscription agreements may include set fees and yearly contribution fees. For further information on the restructuring, please refer to the consolidated financial statements and notes thereto included in the 2016 Annual Report on Form 10-K. Liquidity and Going Concern Matters The accompanying condensed consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles, which contemplates continuation of the Company as a going concern. The Company has suffered recurring losses since inception and has an accumulated deficit of $8.6 million as of June 30, 2017. The Company currently has limited liquidity and had no revenues during the three and six months ended June 30, 2017. For the three months ended June 30, 2017 and 2016, net losses were approximately $11,000 and $1.3 million, respectively. For the six months ended June 30, 2017 and 2016, net losses were approximately $100,000 and $2 million, respectively. At June 30, 2017 and December 31, 2016, the Company had a working capital deficits of approximately $15,000 and $11,000, respectively. As of June 30, 2017, the Company had no cash on hand. The recurring losses raise substantial doubt about the Company’s ability to continue as a going concern. On December 9, 2016, the Company entered into a Securities Purchase Agreement to issue 80% of its outstanding shares in consideration for the cancellation of $124,070 in debts due the Company’s creditors and the future payment of fees to keep the Company’s filing status current. Under the agreement, the new majority shareholder committed to fund the future operations of the Company until the Company completes a business combination or other similar transaction resulting in a change in control.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2017
Summary of Significant Accounting Policies
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Principles of Consolidation The accompanying condensed consolidated financial statements include the accounts of the Company and its significant subsidiaries on a consolidated basis. The Company also includes subsidiaries over which a direct or indirect legal or effective control exists and for which the Company is deemed to direct the significant activities and has the obligation to absorb the losses or benefits of the entities. All intercompany accounts, balances and transactions with other consolidated entities have been eliminated. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, and include the Company’s accounts as well as those of a variable interest entity (“VIE”) for which the Company was the primary beneficiary. Reclassifications Certain reclassifications have been made to the 2016 financial statements to conform to the consolidated 2017 financial statement presentation. These reclassifications had no effect on net earnings or cash flows as previously reported. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Noncontrolling Interests The Company presents noncontrolling interests as a component of equity. Changes in a parent’s ownership interest while the parent retains its controlling interest will be accounted for as equity transactions, and upon loss of control, retained ownership interest will be re-measured at fair value, with any gain or loss recognized in earnings. Income and losses attributable to the noncontrolling interests are presented separately in the Company’s consolidated statement of operations. Revenue Recognition Revenue related to licensing is recognized on a monthly basis determined by the contracted monthly license fee. If the monthly license fee is not paid, the Company is entitled to set the platform offline. Revenues from URL services are based on a fixed annual fee and recognized ratably over the contract period, typically one year. Share Based Compensation ASC Topic 718, Compensation – Stock Compensation The Company accounts for the granting of equity based awards to employees using the fair value method, whereby all awards to employees will be recorded at fair value on the date of grant. The fair value of all equity based awards is expensed over their vesting period with a corresponding increase to additional paid in capital. The fair value of equity based awards is estimated using the most recent securities offering of the same or similar share classes. Compensation costs for stock- based payments to employees with graded vesting are recognized on a straight line basis. Based on guidance in ASC 505, Equity Fair Value of Financial Instruments The accounting standard for fair value establishes a framework for measuring fair value and enhances fair value measurement disclosure. Under the provisions of the pronouncement, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The Company’s current financial assets and liabilities approximate fair value due to their short term nature and include cash accounts. Concentrations of Credit Risk Cash Held in Banks The Company has cash balances at financial institutions located in the Netherlands. Balances at financial institutions in the Netherlands may, from time to time, exceed insured limits. Currently the insured limit amounts to $114,230. Foreign Currency Translation The Company uses the United States dollar (“U.S. dollars” or “USD”) for financial reporting purposes and to maintain its books and records. The Company’s former subsidiaries maintained their books and records in their functional currency, the Euro (“EUR”), the currency of the Netherlands. In connection with the cessation of platform operations in 2016, and in accordance with ASC 830-30, “Foreign Currency Matters – Translation of Financial Statements”, the cumulative foreign currency translation adjustment was released into loss during 2016. In general, for consolidation purposes, the Company translates its assets and liabilities into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, the statements of operations and cash flows are translated at average exchange rates during the reporting period. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements are recorded as accumulated other comprehensive income or loss. As of December 31, 2016, the balance sheet accounts, with the exception of equity, were translated at 1 EUR to $1.0525 USD. The average translation rates applied to the statements of operations for the three months ended June 30, 2017 and 2016 were at 1 EUR to $1.0996 and 1 EUR to $1.1292, respectively. The average translation rates applied to the statements of operations and cash flows for the six months ended June 30, 2017 and 2016 were at 1 EUR to $1.0826 and 1 EUR to $ 1.1161, respectively. Income Taxes Income taxes have been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes result from differences between the financial statement and tax bases of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required often requires significant judgment. Net Loss Per Common Share Basic and diluted net loss per share is presented in conformity with ASC Topic 260, Earnings per Share, for all periods presented. In accordance with this guidance, basic and diluted net loss per share was determined by dividing net loss applicable to common stockholders by the weighted- average common shares outstanding during the period. In a period where there is a net loss position, diluted weighted average shares are the same as basic weighted average shares. Shares used in the diluted net loss per common share calculation exclude potentially dilutive share equivalents as the effect would be antidilutive. Comprehensive Loss Comprehensive loss refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive loss but are excluded from net loss as these amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s other comprehensive loss is comprised of foreign currency translation adjustments. Cost Method Investments Direct and or indirect investments in business entities in which the Company does not have a controlling financial interest and has no ability to exercise significant influence over operating and financial policies (generally 0-20 percent ownership), are accounted for by the cost method. Recent Accounting Pronouncements As compared to the recent accounting pronouncements described in the Company’s 2016 Annual Report on Form 10-K, there are no recently issued accounting pronouncements or changes to accounting pronouncements .

3. PREPAID EXPENSES AND OTHER C

3. PREPAID EXPENSES AND OTHER CURRENT ASSETS	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
3. PREPAID EXPENSES AND OTHER CURRENT ASSETS	Prepaid expenses and other current assets consist of the following: June 30, December 31, 2017 2016 Revenues to be invoiced - 1,370 Wage tax refund - 3,602 Other prepaid expenses - 6,996 Insurance premiums - 13,484 Intercompany balance Symbid Coöperatie UA and Symbid Crowdfunding B.V. - 7,092 $ - $ 32,544

4. INVESTMENTS IN ASSOCIATED CO

4. INVESTMENTS IN ASSOCIATED COMPANIES	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
4. INVESTMENTS IN ASSOCIATED COMPANIES	Symbid Germany On April 25, 2017, the Company sold its equity interests in its 51% owned indirect subsidiary, Symbid Germany GmbH to another shareholder of Symbid Germany GmbH for EUR 1. No gain or loss was recognized on the sale as the entity was dormant and there was no remaining investment balance. Kredietpaspoort During the first quarter of 2017, the shares in Kredietpaspoort were cancelled and the Company’s interest has been reduced to zero. As of December 31, 2016, the holdings in Kredietpaspoort by Symbid B.V., were approximately 7.57%. During 2014, the Kredietpaspoort investment balance was reduced to nil, as the Company suffered losses beyond the initial investment balance. As of June 30, 2017, the initial investment has not been recovered. Equidam In August 2013, the Company acquired a 10% interest in Equidam Holding B.V. (“Equidam”) for $1,095 recorded in Investments in Associated Companies. The Company sold its interest in Equidam Holding B.V. (“Equidam”) on March 6, 2017 for $15,902 and recognized a gain of $14,799 on the sale of the investment. As of December 31, 2016, the Company had a 7% ownership in Equidam, as the initial investment was diluted through a subsequent round of seed funding. The investment in Equidam has been accounted for on the cost basis of accounting.

5. ACCRUED EXPENSES AND OTHER C

5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	June 30, December 31, 2017 2016 Advisory costs $ - $ 3,786 Holiday pay allowance/Net salary - 8,647 Penalty waiver 14,633 14,630 VAT return Q4 2017/2015 - 7,028 Other current liabilities - 2,986 $ 14,633 $ 37,077 All amounts are payable within one year.

6. CAPITAL STOCK

6. CAPITAL STOCK	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
6. CAPITAL STOCK	Common and Preferred Stock The Company’s Certificate of Incorporation authorizes the issuance of 300,000,000 shares of capital stock, consisting of 290,000,000 shares of Common Stock and 10,000,000 shares of “blank check” preferred stock, $0.001 par value per share. Net Loss per Share Basic and diluted net loss per share is presented in conformity with ASC Topic 260, Earnings per Share, for all periods presented. In accordance with this guidance, basic and diluted net loss per common share was determined by dividing net loss applicable to common stockholders by the weighted-average common shares outstanding during the period. In a period where there is a net loss position, diluted weighted-average shares are the same as basic weighted-average shares. Shares used in the diluted net loss per common share calculation exclude potentially dilutive share equivalents as the effect would be 2013 Stock Incentive Plan Before the Share Exchange on December 6, 2013, our Board of Directors adopted, and our stockholders approved, our 2013 Equity Incentive Plan (the “2013 Plan”), which provides for the issuance of incentive awards of up to 83,334 shares of our common stock to officers, key employees, consultants and directors (See Note 7). Securities Purchase Agreement On December 9, 2016, the Company entered into a Securities Purchase Agreement with CKR Law LLP ("CKR"), pursuant to which 2,497,725 shares of restricted common stock at a purchase price of $0.001 per share were issued to CKR for services and (i) the cancellation of an aggregate of $86,456 due from the Company to CKR for services and expense reimbursements; (ii) funding of $43,614 of which $37,614 was used during the year ended December 31, 2016 to pay the Company’s creditors directly from CKR which enabled the Company to file its September 30, 2016 quarterly report; and (iii) the commitment of CKR to fund, to the extent future net revenues of the Company prove insufficient, additional operating expenses of the Company necessary to ensure its continuing operation and existence until such time that the Company completes an acquisition, business continuation, or similar transaction with an operating entity in a transaction that results in a change of control (See Note 8). The shares issued represent 80% of the outstanding shares of the Company. For the three months ended June 30, 2017 and 2016, the Company recorded $14,788 and $0 in payments made on behalf of the Company to equity, respectively. For the six months ended June 30, 2017 and 2016, the Company recorded $96,078 and $0 in payments made on behalf of the Company to equity, respectively. Payments that CKR makes in the future to maintain the Company’s operations will be recorded to additional paid in capital in the period that the Company’s debts are settled by CKR.

7. SHARE BASED COMPENSATION PLA

7. SHARE BASED COMPENSATION PLANS	6 Months Ended
	Jun. 30, 2017
Retirement Benefits [Abstract]
7. SHARE BASED COMPENSATION PLANS	2013 Stock Incentive Plan Under the 2013 Plan, 83,334 shares of the Company’s common stock were reserved for issuance to officers, employees, directors, consultants and advisors to the Company. The stock plan provides for grants of options, stock appreciation rights, performance share awards, restricted stock and restricted stock unit awards (“the Awards”). Up to 27,778 shares could be granted during the first 12 months following the Share Exchange and the remaining 55,556 shares could be granted during the first 24 months following the Share Exchange. As of June 30, 2017, there are 62,074 shares available for issuance under the 2013 Plan. The vesting period for the Awards under the 2013 Plan is determined by the Board at the date of grant and is generally one year. Employee Share Based Compensation Each restricted stock unit represents the right to receive one share of our restricted common stock upon vesting. , which is measured based on the publicly traded share price. For the three and six months ended June 30, 2017 and 2016, no equity awards were granted under the 2013 Plan. During the three and six months ended June 30, 2017, there were no forfeitures of restricted stock. During the three and six months ended June 30, 2016, 1,355 and 2,709 RSUs vested, respectively. During both the three and six month periods ended June 30, 2016, there were 3,380 forfeitures The Company recognized share based compensation expense for employee awards of approximately $1,000 for the three months ended June 30, 2016, all of which was recorded in selling, general and administrative expenses. The Company recognized share based compensation expense for employee awards of approximately $43,000 for the six months ended June 30, 2016, all of which is recorded in selling, general and administrative expenses. As of June 30, 2017, all of the awards of restricted stock issued to employees under the 2013 Plan, have vested. Non-employee Share Based Compensation Share based compensation expense related to restricted stock and restricted stock units (collectively ‘Non-Employee Awards’) granted to non- employees is measured at the fair value of consideration received or the fair value of the equity instruments issued or liabilities incurred, whichever is more reliably measured. The cost of the share based payments to non- employees that are fully vested and non- forfeitable as at the grant date are remeasured and recognized at that date, unless there is a contractual term for services, in which case such compensation would be amortized over the contractual term. For the three and six months ended June 30, 2017 and 2016, no equity awards were granted or forfeited under the 2013 Plan. During the three and six months ended June 30, 2016 142 and 283 RSUs were released. Under the 2013 Plan, for the three and six months ended June 30, 2016, the Company recognized share based compensation expense for non-employees of $1,500 and $4,000, all of which was recorded in selling general and administrative expenses. As of June 30, 2017, all of the awards of restricted stock issued to non-employees under the 2013 Plan have vested. There was no unrecognized compensation expense for unvested non-employee RSUs at June 30, 2017.

8. ACQUISITION AGREEMENT

8. ACQUISITION AGREEMENT	6 Months Ended
	Jun. 30, 2017
Acquisition Agreement
8. ACQUISITION AGREEMENT	On June 5, 2017, the Company entered into the Acquisition Agreement with SAPL and the sole shareholder/member of SAPL. Under the Acquisition Agreement, upon closing, the Company will acquire all of the outstanding capital stock of SAPL consisting of 10,000 Ordinary Shares from the SAPL Shareholder in exchange for 45,211,047 post-split shares of the Company’s common stock (the “Acquisition Shares”), par value $0.001 per share. The Acquisition Agreement contemplates that the issuance of the Acquisition Shares to the SAPL Shareholder in connection with the acquisition will be exempt from the registration requirements of the Securities Act of 1933. as amended. After the acquisition SAPL will be a wholly owned subsidiary of the Company. SAPL has no outstanding securities other than the Ordinary Shares. As a condition of the Acquisition Agreement on June 9, 2017 we effected a 60:1 reverse split of our Common Stock and changed our name to Sincerity Applied Materials Holdings Corp. For financial reporting purposes, the acquisition will be treated as a recapitalization and reverse acquisition for the Company. SAPL will be considered the acquirer for accounting purposes, and our historical financial statements before the acquisition would be replaced with the historical financial statements of SAPL before the acquisition in future filings with the SEC. The acquisition is intended to be treated as a tax-free reorganization under Section 351(a) of the Internal Revenue Code of 1986, as amended. Consummation of the acquisition is subject to customary conditions, including, among others, the absence of any material adverse changes with respect to SAPL’s business and the Company’s business. There can be no assurance that the conditions will be satisfied that the acquisition will be completed. If the acquisition is not completed, we will continue our existing business. The Acquisition Agreement contains an automatic termination clause where if the closing does not take place by July 7, 2017; the Company or SAPL has the right to terminate the Acquisition Agreement under certain specified circumstances. The Acquisition Agreement was subsequently amended to extend the automatic termination date to August 15, 2017 (see Note 9). Simultaneous with the closing of the acquisition the Company will complete a private placement offering of a minimum of $250,000 and a maximum of $500,000 for units consisting of senior secured convertible notes and warrants at a purchase price of $10,000 per unit.

9. SUBSEQUENT EVENTS

9. SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
9. SUBSEQUENT EVENTS	On July 7, 2017, the Company entered into Amendment No. 1 to the June 5, 2017 Acquisition Agreement, with Sincerity Australia Pty Ltd. The Amendment revises (i) the number of shares of our common stock to be issued in the acquisition from 45,210,076 to 45,211,047; (ii) the approximate number of shares of our common stock to be issued and outstanding immediately prior to the effective time of the Acquisition from 3,122,259 to 3,122,287; and (iii) the automatic termination date under the Acquisition Agreement for failure to close by such automatic termination date from July 7, 2017 to July 21, 2017. All of the other terms of the Acquisition Agreement remain in full force and effect. On July 21, 2017, the Company entered into Amendment No. 2 to the June 5, 2017 Acquisition Agreement under which the automatic termination date for failure to close was extended from July 21, 2017 to August 15, 2017. All of the other terms of the Acquisition Agreement remain in full force and effect.

2. SUMMARY OF SIGNIFICANT ACC16

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2017
Significant Accounting Policies
Principles of Consolidation	The accompanying condensed consolidated financial statements include the accounts of the Company and its significant subsidiaries on a consolidated basis. The Company also includes subsidiaries over which a direct or indirect legal or effective control exists and for which the Company is deemed to direct the significant activities and has the obligation to absorb the losses or benefits of the entities. All intercompany accounts, balances and transactions with other consolidated entities have been eliminated. The condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States, and include the Company’s accounts as well as those of a variable interest entity (“VIE”) for which the Company was the primary beneficiary.
Reclassifications	Certain reclassifications have been made to the 2016 financial statements to conform to the consolidated 2017 financial statement presentation. These reclassifications had no effect on net earnings or cash flows as previously reported.
Use of Estimates	The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Noncontrolling Interests	The Company presents noncontrolling interests as a component of equity. Changes in a parent’s ownership interest while the parent retains its controlling interest will be accounted for as equity transactions, and upon loss of control, retained ownership interest will be re-measured at fair value, with any gain or loss recognized in earnings. Income and losses attributable to the noncontrolling interests are presented separately in the Company’s consolidated statement of operations.
Revenue Recognition	Revenue related to licensing is recognized on a monthly basis determined by the contracted monthly license fee. If the monthly license fee is not paid, the Company is entitled to set the platform offline. Revenues from URL services are based on a fixed annual fee and recognized ratably over the contract period, typically one year.
Share Based Compensation	ASC Topic 718, Compensation – Stock Compensation The Company accounts for the granting of equity based awards to employees using the fair value method, whereby all awards to employees will be recorded at fair value on the date of grant. The fair value of all equity based awards is expensed over their vesting period with a corresponding increase to additional paid in capital. The fair value of equity based awards is estimated using the most recent securities offering of the same or similar share classes. Compensation costs for stock- based payments to employees with graded vesting are recognized on a straight line basis. Based on guidance in ASC 505, Equity
Fair Value of Financial Instruments	The accounting standard for fair value establishes a framework for measuring fair value and enhances fair value measurement disclosure. Under the provisions of the pronouncement, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. The Company’s current financial assets and liabilities approximate fair value due to their short term nature and include cash accounts.
Concentrations of Credit Risk	Cash Held in Banks The Company has cash balances at financial institutions located in the Netherlands. Balances at financial institutions in the Netherlands may, from time to time, exceed insured limits. Currently the insured limit amounts to $114,230.
Foreign Currency Translation	The Company uses the United States dollar (“U.S. dollars” or “USD”) for financial reporting purposes and to maintain its books and records. The Company’s former subsidiaries maintained their books and records in their functional currency, the Euro (“EUR”), the currency of the Netherlands. In connection with the cessation of platform operations in 2016, and in accordance with ASC 830-30, “Foreign Currency Matters – Translation of Financial Statements”, the cumulative foreign currency translation adjustment was released into loss during 2016. In general, for consolidation purposes, the Company translates its assets and liabilities into U.S. dollars using the applicable exchange rates prevailing at the balance sheet date, the statements of operations and cash flows are translated at average exchange rates during the reporting period. As a result, amounts related to assets and liabilities reported on the statement of cash flows will not necessarily agree with changes in the corresponding balances on the balance sheet. Equity accounts are translated at historical rates. Adjustments resulting from the translation of the financial statements are recorded as accumulated other comprehensive income or loss. As of December 31, 2016, the balance sheet accounts, with the exception of equity, were translated at 1 EUR to $1.0525 USD. The average translation rates applied to the statements of operations for the three months ended June 30, 2017 and 2016 were at 1 EUR to $1.0996 and 1 EUR to $1.1292, respectively. The average translation rates applied to the statements of operations and cash flows for the six months ended June 30, 2017 and 2016 were at 1 EUR to $1.0826 and 1 EUR to $ 1.1161, respectively.
Income Taxes	Income taxes have been determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the future tax consequences expected to occur when the reported amounts of assets and liabilities are recovered or paid. Deferred taxes result from differences between the financial statement and tax bases of the Company’s assets and liabilities and are adjusted for changes in tax rates and tax laws when changes are enacted. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The assessment of whether or not a valuation allowance is required often requires significant judgment.
Net Loss Per Common Share	Basic and diluted net loss per share is presented in conformity with ASC Topic 260, Earnings per Share, for all periods presented. In accordance with this guidance, basic and diluted net loss per share was determined by dividing net loss applicable to common stockholders by the weighted- average common shares outstanding during the period. In a period where there is a net loss position, diluted weighted average shares are the same as basic weighted average shares. Shares used in the diluted net loss per common share calculation exclude potentially dilutive share equivalents as the effect would be antidilutive.
Comprehensive Loss	Comprehensive loss refers to revenues, expenses, gains and losses that under U.S. GAAP are included in comprehensive loss but are excluded from net loss as these amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s other comprehensive loss is comprised of foreign currency translation adjustments.
Cost Method Investments	Direct and or indirect investments in business entities in which the Company does not have a controlling financial interest and has no ability to exercise significant influence over operating and financial policies (generally 0-20 percent ownership), are accounted for by the cost method.
Recent Accounting Pronouncements	As compared to the recent accounting pronouncements described in the Company’s 2016 Annual Report on Form 10-K, there are no recently issued accounting pronouncements or changes to accounting pronouncements .

3. PREPAID EXPENSES AND OTHER17

3. PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
PREPAID EXPENSES AND OTHER CURRENT ASSETS	June 30, December 31, 2017 2016 Revenues to be invoiced - 1,370 Wage tax refund - 3,602 Other prepaid expenses - 6,996 Insurance premiums - 13,484 Intercompany balance Symbid Coöperatie UA and Symbid Crowdfunding B.V. - 7,092 $ - $ 32,544

5. ACCRUED EXPENSES AND OTHER18

5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	June 30, December 31, 2017 2016 Advisory costs $ - $ 3,786 Holiday pay allowance/Net salary - 8,647 Penalty waiver 14,633 14,630 VAT return Q4 2017/2015 - 7,028 Other current liabilities - 2,986 $ 14,633 $ 37,077

1. BUSINESS, ORGANIZATION AND19

1. BUSINESS, ORGANIZATION AND LIQUIDITY (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Net losses	$ 11,274	$ 1,335,460	$ 100,434	$ 2,005,751
Working capital deficit	15,000		15,000		$ 11,000
Cash on hand	$ 0		$ 0		$ 9,677
Equidam Holding B.V. [Member]
Ownership interest					7.00%
Kredietpaspoort U.A. [Member]
Ownership interest					7.57%

2. SUMMARY OF SIGNIFICANT ACC20

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	Jun. 30, 2017USD ($)
Cash, FDIC Insured Amount	$ 114,230

3. PREPAID EXPENSES AND OTHER21

3. PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Prepaid expenses and other current assets
Revenues to be invoiced	$ 0	$ 1,370
Wage tax refund	0	3,602
Other prepaid expenses	0	6,996
Insurance premiums	0	13,484
Intercompany balance Symbid Coöperatie UA and Symbid Crowdfunding B.V.	0	7,092
Prepaid expenses and other current assets	$ 0	$ 32,544

5. ACCRUED EXPENSES AND OTHER22

5. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Accrued Expenses And Other Current Liabilities Details
Advisory costs	$ 0	$ 3,786
Holiday pay allowance/Net salary	0	8,647
Penalty waiver	14,633	14,630
VAT return Q4 2017/2015	0	7,028
Other current liabilities	0	2,986
Accrued expenses and other current liabilities	$ 14,633	$ 37,077

6. CAPITAL STOCK (Details Narra

6. CAPITAL STOCK (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Capital Stock Details Narrative
Expenses paid by CKR under SPA	$ 96,078	$ 0

7. SHARE BASED COMPENSATION P24

7. SHARE BASED COMPENSATION PLANS (Details Narrative) - 2013 Stock Incentive Plan [Member] - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Jun. 30, 2017
Shares available for issuance			62,074
Employee [Member]
Share based compensation expense		$ 43,000
Non-employee [Member]
Restricted stock released	142	283
Share based compensation expense	$ 1,500	$ 4,000