Pazoo (PZOO) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	9 Months Ended
	Sep. 30, 2013
Document and Entity Information	'
Entity Registrant Name	'Pazoo, Inc.
Document Type	'10-Q
Document Period End Date	30-Sep-13
Amendment Flag	'false
Entity Central Index Key	'0001533427
Current Fiscal Year End Date	'--12-31
Entity Common Stock, Shares Outstanding	92,309,500
Entity Public Float	$92,310
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	'2013
Document Fiscal Period Focus	'Q3

BALANCE_SHEETS_Unaudited_for_S

BALANCE SHEETS (Unaudited for September 30, 2013) (USD $)	Sep. 30, 2013		Dec. 31, 2012
Current assets:	'		'
Cash and cash equivalents	$5,060		$130,556
Accounts receivable	9,734		'
Accounts receivable from related party	32,000	[1]	45,060	[1]
Inventories	4,196		3,536
Prepaid expenses	2,765		6,808
Total current assets	53,755		185,960
Total assets	53,755		185,960
Current liabilities:	'		'
Accounts payable and accrued liabilities	67,337		22,491
Loans payable to related party	9,000		18,302
Total current liabilities	76,337		40,793
Stockholders' (deficit) equity:	'		'
Series A convertible preferred stock	6,941		5,543
Series B preferred stock	1,187		1,375
Common stock	92,310		72,142
Additional paid-in capital	2,050,512		1,862,082
Accumulated deficit	-2,173,532		-1,795,975
Total stockholders' (deficit) equity	-22,582		145,167
Total liabilities and stockholders' (deficit) equity	$53,755		$185,960
[1]	Net of allowance $13,300.

Statement_of_Financial_Positio

Statement of Financial Position - Parenthetical (USD $)	Sep. 30, 2013	Dec. 31, 2012
Common Stock, Par Value	$0.00	$0.00
Common Stock, Shares Authorized	980,000,000	980,000,000
Common Stock, Shares Issued	92,309,500	72,142,000
Common Stock, Shares Outstanding	92,309,500	72,142,000
Warrants Issued	7,000,000	2,400,000
Warrants Outstanding	7,000,000	2,400,000
Preferred Stock Series A	'	'
Preferred Stock, Par Value	$0.00	$0.00
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	6,940,894	5,542,814
Preferred Stock, Shares Outstanding	6,940,894	5,542,814
Preferred Stock Series B	'	'
Preferred Stock, Par Value	$0.00	$0.00
Preferred Stock, Shares Authorized	2,500,000	2,500,000
Preferred Stock, Shares Issued	1,187,500	1,375,000
Preferred Stock, Shares Outstanding	1,187,500	1,375,000
Preferred Stock Series C	'	'
Preferred Stock, Par Value	$0.00	$0.00
Preferred Stock, Shares Authorized	7,500,000	7,500,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

STATEMENTS_OF_OPERATIONS_Unaud

STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:	'	'	'	'
Service revenue	'	$45,000	'	$90,000
Advertising sales	16,052	'	21,517	'
Merchandise sales - revenues	867	4,497	9,503	10,806
Total revenues	16,919	49,497	31,020	100,806
Cost of goods sold	'	'	'	'
Merchandise sales - cost	690	4,262	8,369	11,225
Total cost of goods sold	690	4,262	8,369	11,225
Gross profit	16,229	45,235	22,651	89,581
Operating expenses:	'	'	'	'
Selling, general and administrative expenses	110,152	647,249	269,024	719,520
Business advisory	'	'	'	35,000
Professional fees	24,478	438,459	83,937	490,077
Equipment	'	'	961	910
Website setup	19,171	33,643	46,261	60,358
Total operating expenses	153,801	1,119,351	400,183	1,305,865
Loss from operations	-137,572	-1,074,116	-377,532	-1,216,284
Other expenses:	'	'	'	'
Interest expense	'	-15	-25	-45
Net loss	-137,572	-1,074,131	-377,557	-1,216,329
Series A preferred stock dividend	-27,134	-33,058	-68,755	-79,185
Net loss attributable to common stockholders	($164,706)	($1,107,189)	($446,312)	($1,295,514)
Net loss per common share - basic and diluted	$0	($0.02)	($0.01)	($0.02)
Weighted average common shares outstanding - basic and diluted	88,491,647	69,389,690	81,549,436	57,524,144

STATEMENT_OF_CASH_FLOWS_Unaudi

STATEMENT OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'
Net loss	($377,557)	($1,216,329)
Common stock issued for services	72,885	2,053,674
Accounts receivable (increase/decrease)	3,326	-43,360
Inventories (increase/decrease)	2,612	-2,063
Prepaid expenses and other current assets	771	-568,176
Accounts payable and accrued liabilities (increase/decrease)	56,467	25,756
Net cash (used in) provided by operating activities	-241,496	249,502
Cash flows from financing activities:	'	'
Issuance of preferred stock for cash	82,500	'
Borrowings on related party debt	33,500	'
Net cash provided by financing activities	116,000	'
Net change in cash and cash equivalents	-125,496	249,502
Cash and cash equivalents beginning of period	130,556	3,022
Cash and cash equivalents end of period	5,060	252,524
Noncash Investing and Financing Activities:	'	'
Common stock issued for the conversion of Series A preferred stock	20,250	80,500
Preferred stock dividend	'	4,765
Cancellation of preferred stock	188	'
Preferred stock and common stock warrants issued for related party debt	54,423	1,130,000
Cancellation of common stock	$2,000	'

Note_1Description_of_Business_

Note 1-Description of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Notes	'
Note 1-Description of Business and Basis of Presentation	'
	Note 1—DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
	Basis of Presentation
	The accompanying unaudited interim financial statements of Pazoo, Inc. (“we”, “our”, “Pazoo” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with Pazoo’s audited 2012 annual financial statements and notes thereto filed on Form 10-K with the SEC. In the opinion of management, all adjustments, consisting of normal reoccurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods present have been reflected herein. The results of operation for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially duplicate the disclosure required in Pazoo’s fiscal 2012 financial statements have been omitted.
	Description of Business
	Pazoo, Inc. (the “Company”) was originally incorporated in Nevada as IUCSS, Inc., with our operating headquarters in Cedar Knolls, New Jersey as a leading health and wellness social community to provide information, services, and online products for improvement of everyday living through our website.  We changed our name on May 9, 2011 to take advantage of unique branding and website opportunities in the health improvement field. The Company has devoted substantially all of its efforts to business planning and development, as well as allocating a substantial portion of its time and resources in bringing unique product offerings to the market.  The Company began commercial operations during 2012.
	Reclassifications
	Certain prior period amounts have been reclassified to conform to current period presentation.

Note_2Going_Concern

Note 2-Going Concern	9 Months Ended
	Sep. 30, 2013
Notes	'
Note 2-Going Concern	'
	Note 2—GOING CONCERN
	From inception of November 16, 2010 through September 30, 2013, the Company incurred net losses of $2,173,532    This factor, among others, raises significant doubt about the Company’s ability to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification of assets or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.  The Company’s continuation as a going concern is dependent upon our ability to generate sufficient cash flow to meet our obligations on a timely basis and ultimately attain profitability.  Management believes that we can alleviate the facts and circumstances which indicate a going concern by expanding our services, increasing advertising revenue, adding valuable expert advice and increasing online product selection. We aim to become more than a web based company by providing information, services and products through direct response, retail, and advertising revenue, in addition to our website.

Note_3Stockholders_Equity

Note 3-Stockholders' Equity	9 Months Ended
	Sep. 30, 2013
Notes	'
Note 3-Stockholders' Equity	'
	Note 3—STOCKHOLDERS’ EQUITY
	Common Stock
	During the nine months ended September 30, 2013, 2,025,000 Series A Preferred shares were converted into 20,250,000 common shares.
	During the nine months ended September 30, 2013, we issued an aggregate of 1,917,500 common shares for services performed valued at $72,885.  This included shares issued to individuals who are affiliated with the “Our Experts” section of our Company website. Experts have signed contract to provide services which includes a certain number of shares issued upon signing and further shares earned over the first year of the contract. During the nine months ended September 30, 2013, an aggregate of $72,885 was expensed under these “Expert” contracts. As of September 30, 2013, there were 2,365,000 common shares that will be earned through 2014 of which $40,946 remains to be expensed.
	During the nine months ended September 30, 2013, 2,000,000 common shares previously issued to Gotham Capital for services were returned to the Company and cancelled.
	Preferred Stock
	Pazoo, Inc. entered into a new Investment Agreement with ICPI whereby up to $250,000 will be invested into Pazoo through the sale of units of Series A Preferred shares and Series A preferred warrants to be used for the furtherance of the business and the financial improvement of Pazoo. During the nine months ended September 30, 2013, we issued 2,062,500 Series A Preferred Shares and 2,062,500 Series A preferred share warrants to ICPI at $0.04 per unit for cash of $82,500 and we issued 1,360,580 Series A preferred shares and 1,360,580 Series A preferred warrants for the conversion of related party debt totaling $54,423. The Series A preferred stock warrants are exercisable at $0.05 per share for 5 years.
	During the nine months ended September 30, 2013, 187,500 shares of Series B preferred stock were returned to the Company and cancelled.
	Warrants
	The following table presents the Series A preferred stock warrant activity during the nine months ended September 30, 2013:
		Warrants	Weighted Average Exercise Price
	Outstanding - December 31, 2012	2,000,000	$     0.75
	Granted	3,423,080	0.05
	Forfeited/Canceled	-	-
	Exercised	-	-
	Outstanding - September 30, 2013	5,423,080	0.31
	Exercisable- September 30, 2013	5,423,080	$   0.31
	The weighted average remaining life of the outstanding Series A preferred stock warrants as of September 30, 2013 and December 31, 2012 was 3.67 and 2.54 years, respectively.
	On January 23, 2013, Pazoo modified the exercise price of 600,000 warrants previously sold for cash along with shares of Series A preferred stock in January 2012. The exercise price was modified from $0.05 to $0.03.
	The following table presents the common stock warrant activity during the nine months ended September 30, 2013:
		Warrants	Weighted
			Average
			Exercise Price
	Outstanding - December 31, 2012	7,000,000	$0.04
	Granted	-	-
	Forfeited/Canceled	2,000,000	0.05
	Exercised	-	-
	Outstanding - September 30, 2013	5,000,000	0.05
	Exercisable- September 30, 2013	5,000,000	$0.05
	The weighted average remaining life of the outstanding common stock warrants as of September 30, 2013 and December 31, 2012 was 1.52 and 2.55 years, respectively.

Note_4Related_Party_Transactio

Note 4-Related Party Transactions	9 Months Ended
	Sep. 30, 2013
Notes	'
Note 4-Related Party Transactions	'
	Note 4—RELATED PARTY TRANSACTIONS
	David Cunic has an equity ownership interest in Pazoo and is a Board Member and the CEO of Pazoo.  He is also an owner of DMC Athletics & Rehabilitation, Inc. (“DMC”). In April 2012 Pazoo entered into a consulting agreement with DMC. Due to the effects of Hurricane Sandy, DMC was no longer in a position to continue to perform the under the consulting agreement, and the parties mutually agreed to terminate the consulting agreement in November 2012. The Company generated $105,000 in revenues pursuant to this agreement during 2012. Of this amount, $45,300 is still outstanding in accounts receivable and $13,300 is recorded in allowance for doubtful accounts as of September 30, 2013.
	Steve Basloe has an equity ownership interest in Pazoo and is the Chairman of the Board and the President of Pazoo.  He is also the owner of SMB Marketing.  SMB Marketing signed a consulting agreement with Pazoo in September 2013 to create strategy and execute against this plan to roll out the design and production of Pazoo.com and the content for Pazoo.com. The agreement is for a term of two years and requires weekly compensation on $1,000. During the nine months ended September 30, 2013, he received $3,000 in relation to this agreement.
	The Company has outstanding notes payable to Integrated Capital Partners, Inc. (ICPI) who is a Series A Preferred stockholder. The notes are secured by the assets of the Company, have interest rates between 0.16% and 0.56%, and are due on demand. As of September 30, 2013 and December 31, 2012, the outstanding principal balance under these notes was $9,000 and $18,302, respectively.

Note_5Subsequent_Events

Note 5-Subsequent Events	9 Months Ended
	Sep. 30, 2013
Notes	'
Note 5-Subsequent Events	'
	Note 5—SUBSEQUENT EVENTS
	In October 2013, we issued 362,500 Series A preferred shares and 362,500 Series A preferred warrants to ICPI at a price of $0.04 per share for $14,500 pursuant to the Investment Agreement dated May 31, 2013. The Series A preferred stock warrants exercisable at $0.05 per share for 5 years.
	Also, in October 2013, ICPI converted 450,000 shares of Series A convertible preferred stock into 4,500,000 shares of common stock.

Note_1Description_of_Business_1

Note 1-Description of Business and Basis of Presentation: Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Basis of Presentation	'
	Basis of Presentation
	The accompanying unaudited interim financial statements of Pazoo, Inc. (“we”, “our”, “Pazoo” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with Pazoo’s audited 2012 annual financial statements and notes thereto filed on Form 10-K with the SEC. In the opinion of management, all adjustments, consisting of normal reoccurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods present have been reflected herein. The results of operation for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially duplicate the disclosure required in Pazoo’s fiscal 2012 financial statements have been omitted.

Note_1Description_of_Business_2

Note 1-Description of Business and Basis of Presentation: Description of Business (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Description of Business	'
	Description of Business
	Pazoo, Inc. (the “Company”) was originally incorporated in Nevada as IUCSS, Inc., with our operating headquarters in Cedar Knolls, New Jersey as a leading health and wellness social community to provide information, services, and online products for improvement of everyday living through our website.  We changed our name on May 9, 2011 to take advantage of unique branding and website opportunities in the health improvement field. The Company has devoted substantially all of its efforts to business planning and development, as well as allocating a substantial portion of its time and resources in bringing unique product offerings to the market.  The Company began commercial operations during 2012.

Note_1Description_of_Business_3

Note 1-Description of Business and Basis of Presentation: Reclassifications (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Reclassifications	'
	Reclassifications
	Certain prior period amounts have been reclassified to conform to current period presentation.

Note_3Stockholders_Equity_Comm

Note 3-Stockholders' Equity: Common Stock (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Common Stock	'
	Common Stock
	During the nine months ended September 30, 2013, 2,025,000 Series A Preferred shares were converted into 20,250,000 common shares.
	During the nine months ended September 30, 2013, we issued an aggregate of 1,917,500 common shares for services performed valued at $72,885.  This included shares issued to individuals who are affiliated with the “Our Experts” section of our Company website. Experts have signed contract to provide services which includes a certain number of shares issued upon signing and further shares earned over the first year of the contract. During the nine months ended September 30, 2013, an aggregate of $72,885 was expensed under these “Expert” contracts. As of September 30, 2013, there were 2,365,000 common shares that will be earned through 2014 of which $40,946 remains to be expensed.
	During the nine months ended September 30, 2013, 2,000,000 common shares previously issued to Gotham Capital for services were returned to the Company and cancelled.

Note_3Stockholders_Equity_Pref

Note 3-Stockholders' Equity: Preferred Stock (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Preferred Stock	'
	Preferred Stock
	Pazoo, Inc. entered into a new Investment Agreement with ICPI whereby up to $250,000 will be invested into Pazoo through the sale of units of Series A Preferred shares and Series A preferred warrants to be used for the furtherance of the business and the financial improvement of Pazoo. During the nine months ended September 30, 2013, we issued 2,062,500 Series A Preferred Shares and 2,062,500 Series A preferred share warrants to ICPI at $0.04 per unit for cash of $82,500 and we issued 1,360,580 Series A preferred shares and 1,360,580 Series A preferred warrants for the conversion of related party debt totaling $54,423. The Series A preferred stock warrants are exercisable at $0.05 per share for 5 years.
	During the nine months ended September 30, 2013, 187,500 shares of Series B preferred stock were returned to the Company and cancelled.

Note_3Stockholders_Equity_Warr

Note 3-Stockholders' Equity: Warrants (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Warrants	'
	Warrants
	The following table presents the Series A preferred stock warrant activity during the nine months ended September 30, 2013:
		Warrants	Weighted Average Exercise Price
	Outstanding - December 31, 2012	2,000,000	$     0.75
	Granted	3,423,080	0.05
	Forfeited/Canceled	-	-
	Exercised	-	-
	Outstanding - September 30, 2013	5,423,080	0.31
	Exercisable- September 30, 2013	5,423,080	$   0.31
	The weighted average remaining life of the outstanding Series A preferred stock warrants as of September 30, 2013 and December 31, 2012 was 3.67 and 2.54 years, respectively.
	On January 23, 2013, Pazoo modified the exercise price of 600,000 warrants previously sold for cash along with shares of Series A preferred stock in January 2012. The exercise price was modified from $0.05 to $0.03.
	The following table presents the common stock warrant activity during the nine months ended September 30, 2013:
		Warrants	Weighted
			Average
			Exercise Price
	Outstanding - December 31, 2012	7,000,000	$0.04
	Granted	-	-
	Forfeited/Canceled	2,000,000	0.05
	Exercised	-	-
	Outstanding - September 30, 2013	5,000,000	0.05
	Exercisable- September 30, 2013	5,000,000	$0.05
	The weighted average remaining life of the outstanding common stock warrants as of September 30, 2013 and December 31, 2012 was 1.52 and 2.55 years, respectively.

Note_3Stockholders_Equity_Warr1

Note 3-Stockholders' Equity: Warrants: Schedule of Redeemable Preferred Stock (Tables)	9 Months Ended
	Sep. 30, 2013
Tables/Schedules	'
Schedule of Redeemable Preferred Stock	'
		Warrants	Weighted Average Exercise Price
	Outstanding - December 31, 2012	2,000,000	$     0.75
	Granted	3,423,080	0.05
	Forfeited/Canceled	-	-
	Exercised	-	-
	Outstanding - September 30, 2013	5,423,080	0.31
	Exercisable- September 30, 2013	5,423,080	$   0.31

Note_3Stockholders_Equity_Warr2

Note 3-Stockholders' Equity: Warrants: Schedule of Stockholders' Equity Note, Warrants or Rights (Tables)	9 Months Ended
	Sep. 30, 2013
Tables/Schedules	'
Schedule of Stockholders' Equity Note, Warrants or Rights	'
		Warrants	Weighted
			Average
			Exercise Price
	Outstanding - December 31, 2012	7,000,000	$0.04
	Granted	-	-
	Forfeited/Canceled	2,000,000	0.05
	Exercised	-	-
	Outstanding - September 30, 2013	5,000,000	0.05
	Exercisable- September 30, 2013	5,000,000	$0.05

Note_2Going_Concern_Details

Note 2-Going Concern (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Details	'	'
Accumulated deficit	$2,173,532	$1,795,975

Note_3Stockholders_Equity_Comm1

Note 3-Stockholders' Equity: Common Stock (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Details	'	'
Conversion of Stock, Shares Converted	20,250,000	'
Stock Issued During Period, Shares, Issued for Services	1,917,500	'
Common stock issued for services	$72,885	$2,053,674

Note_3Stockholders_Equity_Pref1

Note 3-Stockholders' Equity: Preferred Stock (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Details	'	'
Issuance of preferred stock for cash	$82,500	'
Preferred stock and common stock warrants issued for related party debt	$54,423	$1,130,000

Note_4Related_Party_Transactio1

Note 4-Related Party Transactions (Details) (USD $)	9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Details	'	'
Accounts Receivable, Gross	$45,300	'
Allowance for Doubtful Accounts Receivable, Current	13,300	'
Increase (Decrease) in Accounts Payable, Related Parties	3,000	'
Loans payable to related party	$9,000	$18,302