Processa Pharmaceuticals (PCSA) 10-Q 4 Oct 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2017shares
Document and Entity Information
Entity Registrant Name	Heatwurx, Inc.
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Entity Central Index Key	1,533,743
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	11,017,388
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
Trading Symbol	hwx

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 1,949	$ 3,237
Total current assets	1,949	3,237
Other assets:
Total assets	1,949	3,237
Current liabilities:
Accounts payable	91,187	166,165
Accrued liabilities	147,619	134,513
Interest payable	566,530	441,174
Income taxes payable	200	200
Senior secured notes payable	1,037,361	962,361
Unsecured notes payable	420,000	420,000
Revolving line of credit	229,980	229,980
Total current liabilities	2,492,877	2,354,393
Long-term liabilities:
Total liabilities	2,492,877	2,354,393
Commitments and contingencies
Stockholders' equity:
Preferred stock value	18	18
Common stock value	1,102	1,102
Additional paid-in capital	14,329,057	14,329,057
Accumulated deficit	(15,394,689)	(15,254,917)
Stockholders' equity from discontinued operations	(1,426,416)	(1,426,416)
Total stockholders' equity	(2,490,928)	(2,351,156)
Total liabilities and stockholders' equity	$ 1,949	$ 3,237

BALANCE SHEETS (Parenthetical)

BALANCE SHEETS (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	4,500,000	4,500,000
Preferred Stock, Issued	178,924	178,924
Common Stock, Par Value	$ 0.0001	$ 0.0001
Common Stock, Shares Authorized	20,000,000	20,000,000
Common Stock, Issued	11,017,388	11,017,388
Common Stock, Outstanding	11,017,388	11,017,388
Preferred Series B
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	1,500,000	1,500,000
Preferred Stock, Issued	0	0
Liquidation preference	$ 0	$ 0
Preferred Series C
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	760,000	760,000
Preferred Stock, Issued	0	0
Liquidation preference	$ 0	$ 0
Preferred Series D
Preferred Stock, Par Value	$ 0.0001	$ 0.0001
Preferred Stock, Shares Authorized	1,500,000	1,500,000
Preferred Stock, Issued	178,924	178,924
Liquidation preference	$ 886,037	$ 864,743

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement
Equipment sales				$ 5,000
Total revenue				5,000
Gross profit				5,000
Expenses:
Selling, general and administrative	$ 10,270	$ 3,284	$ 23,869	83,799
Research and development	83	5,697	166	5,697
Total expenses	10,353	8,981	24,035	89,496
Loss from continuing operations, before taxes	(10,353)	(8,981)	(24,035)	(84,496)
Other Income and Expense:
Gain (loss) on extinguishment of debt	30,912	25,155	30,912	25,155
Interest expense	63,410	62,634	125,355	118,740
Total other income and expense	(32,498)	(37,479)	(94,443)	(93,585)
Loss before income taxes	(42,851)	(46,460)	(118,478)	(178,081)
Net income (loss) from continuing operations	(42,851)	(46,460)	(118,478)	(178,081)
Net income (loss) from discontinued operations		3,260		1,256
Net loss	(42,851)	(43,200)	(118,478)	(176,825)
Preferred stock cumulative dividend and deemed dividend	(10,706)	(10,706)	(21,294)	(21,411)
Net loss available to common stockholders	$ (53,557)	$ (53,906)	$ (139,772)	$ (198,236)
Net loss per common share basic and diluted from continuing operations	$ 0	$ (0.01)	$ (0.01)	$ (0.02)
Net loss per common share basic and diluted from discontinued operations	0	0	0	0
Net loss per common share basic and diluted	$ 0	$ (0.01)	$ (0.01)	$ (0.02)
Weighted average shares outstanding basic and diluted	11,017,388	11,017,388	11,017,388	11,017,388

CONSOLIDATED STATEMENT OF CASH

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (42,851)	$ (43,200)	$ (118,478)	$ (176,825)
Net income (loss) from discontinued operations		3,260		1,256
Net income (loss) from continuing operations	(42,851)	(46,460)	(118,478)	(178,081)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation expense				159
Gain (loss) on extinguishment of debt	30,912	25,155	30,912	25,155
Amortization of debt discount				967
Stock-based compensation				6,691
Changes in operating assets and liabilities
(Increase) decrease in receivables				(25,000)
(Increase) decrease in prepaid and other current assets				47,722
Increase (decrease) in accounts payable			(44,066)	17,829
Increase (decrease) in accrued liabilities			(8,188)	(2,840)
Increase (decrease) in interest payable			125,356	113,532
Cash used in operating activities from continuing operations			(76,288)	(44,176)
Cash used in operating activities from discontinued operations				(8,766)
Cash used in operating activities			(76,288)	(52,942)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sale of assets held for sale				42,000
Cash provided by (used in) investing activities from continuing operations				42,000
Cash provided by (used in) investing activities				42,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of senior secured notes payable			75,000	15,000
Cash provided by (used in) financing activities from continuing operations			75,000	15,000
Cash provided by (used in) financing activities			75,000	15,000
Net change in cash and cash equivalents			(1,288)	4,058
Cash and cash equivalents, beginning of period, including discontinued operations			3,237	14,440
Cash and cash equivalents, end of period	$ 1,949	$ 18,498	$ 1,949	$ 18,498

Principal Business Activities

Principal Business Activities	6 Months Ended
	Jun. 30, 2017
Notes
Principal Business Activities	1. PRINCIPAL BUSINESS ACTIVITIES Organization and Business

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Notes
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company’s consolidated financial statements include Dr. Pave, LLC and Dr. Pave Worldwide, LLC; both wholly-owned subsidiaries of the Company, which are represented in the Company’s discontinued operations (Note 3). All intercompany balances and transactions have been eliminated in the consolidated financial statements. Interim Financial Statements Use of estimates Going Concern and Management’s Plan The Company has previously relied exclusively on private placements with a small group of investors to finance its business and operations. The Company has had little revenue since inception. For the six months ended June 30, 2017, the Company incurred a net loss from continuing operations of approximately $118,478 and used approximately $76,288 in net cash from operating activities from continuing. The Company had total cash on hand of approximately $1,949 as of June 30, 2017. The Company is not able to obtain additional financing adequate to fulfill its commercialization activities, nor achieve a level of revenues adequate to support the Company’s cost structure. The Company does not currently have any revenue under contract nor does it have any immediate sales prospects. The Company has significantly reduced employees and overhead. The decision to cease operations of Dr. Pave, LLC and Dr. Pave Worldwide, LLC was made on December 31, 2015. These business components are captured within discontinued operations as of June 30, 2017 (Note 3). The Company has significantly scaled back operations to maintain only a minimal level of operations necessary to support our licensee and look for potential merger candidates. It is the Company’s intention to move forward as a public entity and to seek potential merger candidates. If the Company fails to merge or be acquired by another company, we will be required to terminate all operations. During the six months ended June 30, 2017, the Company received cash of $75,000 as part of the $2,000,000 senior secured debt offering commenced in February 2015. Based upon the Company’s current financial, the Company was not able to satisfy the mandatory principal payments in 2017 under the $2,000,000 senior secured debt. The Company will continue to work with the lenders to explore extension or conversion options, but there is no guarantee the lenders will agree to modify the repayment terms of the notes under conditions that will allow the Company to continue to repay the notes, if at all. As these notes are secured by all the assets of the Company, including intellectual property rights, the Company is in default in regard to interest payments on the notes, and the lenders may call the notes and foreclose on the Company’s assets. The issues described above raise substantial doubt about the Company’s ability to continue as a going concern. The Company has been solely reliant on raising debt and capital to maintain its operations. Previously the Company was able to raise debt and equity financing through the assistance of a small number of investors who have been substantial participants in its debt and equity offerings since the Company’s formation. These investors have chosen not to further assist the Company with its capital raising initiatives and, at this time, the Company is not able to obtain any alternative forms of financing and the Company will not be able to continue to satisfy its current or long term obligations. The Company needs to merge with or be acquired by another company. If a candidate is not identified, the Company will be forced to cease operations all together. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be different should the Company be unable to continue as a going concern. Cash and cash equivalents Net income (loss) per share Subsequent events Reclassification Recently Issued Accounting Pronouncements

Discontinued Operations, Disclo

Discontinued Operations, Disclosure	6 Months Ended
	Jun. 30, 2017
Notes
Discontinued Operations, Disclosure	3. DISCONTINUED OPERATIONS In efforts to streamline operations and expenses the Company elected to discontinue the Dr. Pave and Dr. Pave Worldwide entities during 2015. The financial results of these events are represented in the discontinued operations included in the June 30, 2017 and 2016 financial statements. The operating results of discontinued operations of Dr. Pave and Dr. Pave Worldwide for the three and six months ended June 30, 2017 and 2016 are summarized below: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Revenue $ -- $ -- $ -- $ -- Expense -- 48 -- (1,792) Net Loss, before Other income and expense and taxes -- (48) -- (1,792) Other income (expense) -- 3,308 -- (536) Income tax benefit -- -- -- -- Net Income (Loss), net of tax $ -- $ 3,260 $ -- $ 1,256 The were no assets or liabilities from discontinued operations as of June 30, 2017 and December 31, 2016.

Notes Payable, Disclosure

Notes Payable, Disclosure	6 Months Ended
	Jun. 30, 2017
Notes
Notes Payable, Disclosure	4. NOTES PAYABLE Notes consisted of the following as of June 30, 2017 Principal Balance Interest Rate Accrued Interest Warrants issued Warrant Fair Value - Discount Unamortized Discount Unsecured notes payable $ 420,000 12% $ 113,280 139,997 $ 115,159 $ -- Secured notes payable $ 1,037,361 12% - 18% $ 379,381 -- $ -- $ -- Revolving line of credit $ 229,980 12% - 18% $ 73,869 -- $ -- $ -- $ 1,687,341 $ 566,530 139,997 $ 115,159 $ -- Based upon the Company’s financial position, the Company does not believe it will be able to satisfy the mandatory principal payments in 2017. The Company will work with the lenders to explore extension or conversion options. There is no guarantee the lenders will accommodate our requests. The Company is in default in regard to interest payments on the notes, the Company’s assets may be foreclosed upon.

Stockholders' Equity, Disclosur

Stockholders' Equity, Disclosure	6 Months Ended
	Jun. 30, 2017
Notes
Stockholders' Equity, Disclosure	5. STOCKHOLDERS’ EQUITY Stock Options Number of Options Weighted Average Exercise Price Weighted Average Remaining Life (Years) Balance, December 31, 2016 269,500 $ 1.88 2.04 Granted -- $ -- -- Exercised -- $ -- -- Cancelled (32,000) $ 1.75 -- Balance, June 30, 2017 237,500 $ 1.89 1.78 Exercisable, June 30, 2017 237,500 $ 1.89 1.78 The Company recognized no stock-based compensation expense during the three and six months ended June 30, 2017 and $1,629 and $6,691 during the three and six months ended June 30, 2016, respectively. As of June 30, 2017, there is no unrecognized compensation expense related to the issuance of the stock options. Performance Stock Options There were no performance stock options granted during the three and six months ended June 30, 2017 and 2016. Number of Options Weighted Average Exercise Price Balance, December 31, 2016 40,000 $ 2.00 Granted -- -- Exercised -- -- Cancelled -- -- Balance, June 30, 2017 40,000 $ 2.00 Exercisable, June 30, 2017 40,000 $ 2.00 Warrants There were no warrants issued during the three and six months ended June 30, 2017. Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Life (Years) Balance, December 31, 2016 2,000,304 $ 2.36 0.63 Granted -- -- -- Exercised -- -- -- Cancelled (523,326) $ 3.00 -- Balance, June 30, 2017 1,476,978 $ 2.13 0.30

Net Loss Per Common Share, Disc

Net Loss Per Common Share, Disclosure	6 Months Ended
	Jun. 30, 2017
Notes
Net Loss Per Common Share, Disclosure	6. NET LOSS PER COMMON SHARE The Company computes loss per share of common stock using the two-class method required for participating securities. The Company’s participating securities include all series of its convertible preferred stock. Undistributed earnings allocated to these participating securities are added to net loss in determining net loss applicable to common stockholders. Basic and Diluted loss per share are computed by dividing net loss applicable to common stockholder by the weighted-average number of shares of common stock outstanding. Outstanding options and warrants underlying 1,754,478 shares do not assume conversion, exercise or contingent exercise in the computation of diluted loss per share because the effect would be anti-dilutive. The calculation of the numerator and denominator for basic and diluted net loss per common share is as follows: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Net loss from continuing operations $ (42,851) $ (46,460) $ (118,478) $ (178,081) Net loss from discontinued operations -- 3,260 -- 1,256 Net Loss (42,851) (43,200) (118,478) (176,825) Basic and diluted: Preferred stock cumulative dividend - Series D (10,706) (10,706) (21,294) (21,411) Income applicable to preferred stockholders (10,706) (10,706) (21,294) (21,411) Net loss applicable to common stockholders $ (53,557) $ (53,906) $ (139,772) $ (198,236) Weighted average shares outstanding used in calculating net loss per common share 11,017,388 11,017,388 11,017,388 11,017,388

Commitments and Contingencies,

Commitments and Contingencies, Disclosure	6 Months Ended
	Jun. 30, 2017
Notes
Commitments and Contingencies, Disclosure	7. COMMITMENTS AND CONTINGENCIES Vendors and Debt

Related Party Transactions, Dis

Related Party Transactions, Disclosure	6 Months Ended
	Jun. 30, 2017
Notes
Related Party Transactions, Disclosure	8. RELATED PARTY TRANSACTIONS Dividend and Interest activity Justin Yorke is the manager of the JMW Fund, LLC, the San Gabriel Fund, LLC, and the Richland Fund, LLC; and is a director of the Company. Mr. McGrain, our Interim Chief executive officer and Interim Chief financial officer is also a member of the JMW Fund, LLC, the San Gabriel Fund, LLC, and the Richland Fund, LLC. These funds own 4,725,721 shares of common stock and holds warrants to purchase 1,278,186 common shares in the aggregate. The Company had secured notes payable with the JMW Fund, LLC, the San Gabriel Fund, LLC and the Richland Fund, LLC in the aggregate amount of $1,037,361 as of June 30, 2017 and $962,361 as of December 31, 2016. The funds had an aggregate outstanding balance of $138,000 on the revolving line of credit as of June 30, 2017 and December 31, 2016. Mr. Yorke, as the manager of these funds, earned interest from loans payable for the three and six months ended June 30, 2017 of $48,093 and $94,889, respectively; and for the three and six months ended June 30, 2016 of $47,316 and $97,055, respectively. Total accrued interest as of June 30, 2017 and 2016 was $427,455 and $332,566, respectively.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information, Disclosure	6 Months Ended
	Jun. 30, 2017
Notes
Supplemental Cash Flow Information, Disclosure	9. SUPPLEMENTAL CASH FLOW INFORMATION Six Months ended June 30, 2017 2016 Cash paid for interest $ -- $ 6,723 Cash paid for income taxes $ -- $ -- Non-cash investing and financing transactions Series D Dividend payable in accrued expenses $ 21,294 $ 21,411

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Notes
Subsequent Events	10. SUBSEQUENT EVENTS We have evaluated all events that occurred after the balance sheet date through the date when our financial statements were issued to determine if they must be reported. Management has determined that other than as disclosed below, there were no additional reportable subsequent events to be disclosed. Debt offerings The Company entered into Secured notes under the senior secured loan agreement in the aggregate amount of $15,000 on July 26, 2017; $105,000 on August 7, 2017 and $132,000 on September 21, 2017. Other On July 17, 2017, the Company issued a press release entitled “Heatwurx Announces Letter of Intent with Promet Therapeutics, LLC Relating to a Reverse Merger” in which the Company disclosed that it has entered into a non-binding letter of intent to engage in a reverse merger with Promet Therapeutics, LLC. Board of Directors On August 24, 2017, Mr. Justin Yorke and Mr. Christopher Bragg were appointed to the Board of Directors of the Company.

Summary of Significant Accoun16

Summary of Significant Accounting Policies: Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
Basis of Presentation	Basis of Presentation The Company’s consolidated financial statements include Dr. Pave, LLC and Dr. Pave Worldwide, LLC; both wholly-owned subsidiaries of the Company, which are represented in the Company’s discontinued operations (Note 3). All intercompany balances and transactions have been eliminated in the consolidated financial statements.

Summary of Significant Accoun17

Summary of Significant Accounting Policies: Use of Estimates, Policy (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
Use of Estimates, Policy	Use of estimates

Summary of Significant Accoun18

Summary of Significant Accounting Policies: Going Concern and Management's Plan (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
Going Concern and Management's Plan	Going Concern and Management’s Plan The Company has previously relied exclusively on private placements with a small group of investors to finance its business and operations. The Company has had little revenue since inception. For the six months ended June 30, 2017, the Company incurred a net loss from continuing operations of approximately $118,478 and used approximately $76,288 in net cash from operating activities from continuing. The Company had total cash on hand of approximately $1,949 as of June 30, 2017. The Company is not able to obtain additional financing adequate to fulfill its commercialization activities, nor achieve a level of revenues adequate to support the Company’s cost structure. The Company does not currently have any revenue under contract nor does it have any immediate sales prospects. The Company has significantly reduced employees and overhead. The decision to cease operations of Dr. Pave, LLC and Dr. Pave Worldwide, LLC was made on December 31, 2015. These business components are captured within discontinued operations as of June 30, 2017 (Note 3). The Company has significantly scaled back operations to maintain only a minimal level of operations necessary to support our licensee and look for potential merger candidates. It is the Company’s intention to move forward as a public entity and to seek potential merger candidates. If the Company fails to merge or be acquired by another company, we will be required to terminate all operations. During the six months ended June 30, 2017, the Company received cash of $75,000 as part of the $2,000,000 senior secured debt offering commenced in February 2015. Based upon the Company’s current financial, the Company was not able to satisfy the mandatory principal payments in 2017 under the $2,000,000 senior secured debt. The Company will continue to work with the lenders to explore extension or conversion options, but there is no guarantee the lenders will agree to modify the repayment terms of the notes under conditions that will allow the Company to continue to repay the notes, if at all. As these notes are secured by all the assets of the Company, including intellectual property rights, the Company is in default in regard to interest payments on the notes, and the lenders may call the notes and foreclose on the Company’s assets. The issues described above raise substantial doubt about the Company’s ability to continue as a going concern. The Company has been solely reliant on raising debt and capital to maintain its operations. Previously the Company was able to raise debt and equity financing through the assistance of a small number of investors who have been substantial participants in its debt and equity offerings since the Company’s formation. These investors have chosen not to further assist the Company with its capital raising initiatives and, at this time, the Company is not able to obtain any alternative forms of financing and the Company will not be able to continue to satisfy its current or long term obligations. The Company needs to merge with or be acquired by another company. If a candidate is not identified, the Company will be forced to cease operations all together. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of recorded assets, or the amounts and classification of liabilities that might be different should the Company be unable to continue as a going concern.

Summary of Significant Accoun19

Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
Cash and Cash Equivalents, Policy	Cash and cash equivalents

Summary of Significant Accoun20

Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
Earnings Per Share, Policy	Net income (loss) per share

Summary of Significant Accoun21

Summary of Significant Accounting Policies: Subsequent Events, Policy (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
Subsequent Events, Policy	Subsequent events

Summary of Significant Accoun22

Summary of Significant Accounting Policies: Reclassification, Policy (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
Reclassification, Policy	Reclassification

Summary of Significant Accoun23

Summary of Significant Accounting Policies: Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2017
Policies
Recent Accounting Pronouncements	Recently Issued Accounting Pronouncements

Discontinued Operations, Disc24

Discontinued Operations, Disclosure: Schedules of Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedules of Discontinued Operations	Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Revenue $ -- $ -- $ -- $ -- Expense -- 48 -- (1,792) Net Loss, before Other income and expense and taxes -- (48) -- (1,792) Other income (expense) -- 3,308 -- (536) Income tax benefit -- -- -- -- Net Income (Loss), net of tax $ -- $ 3,260 $ -- $ 1,256

Notes Payable, Disclosure_ Sche

Notes Payable, Disclosure: Schedule of Notes Payable (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Notes Payable	Principal Balance Interest Rate Accrued Interest Warrants issued Warrant Fair Value - Discount Unamortized Discount Unsecured notes payable $ 420,000 12% $ 113,280 139,997 $ 115,159 $ -- Secured notes payable $ 1,037,361 12% - 18% $ 379,381 -- $ -- $ -- Revolving line of credit $ 229,980 12% - 18% $ 73,869 -- $ -- $ -- $ 1,687,341 $ 566,530 139,997 $ 115,159 $ --

Stockholders' Equity, Disclos26

Stockholders' Equity, Disclosure: Schedule of Stock Option Activity (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Stock Option Activity	Number of Options Weighted Average Exercise Price Weighted Average Remaining Life (Years) Balance, December 31, 2016 269,500 $ 1.88 2.04 Granted -- $ -- -- Exercised -- $ -- -- Cancelled (32,000) $ 1.75 -- Balance, June 30, 2017 237,500 $ 1.89 1.78 Exercisable, June 30, 2017 237,500 $ 1.89 1.78

Stockholders' Equity, Disclos27

Stockholders' Equity, Disclosure: Schedule of Performance Stock Options (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Performance Stock Options	Number of Options Weighted Average Exercise Price Balance, December 31, 2016 40,000 $ 2.00 Granted -- -- Exercised -- -- Cancelled -- -- Balance, June 30, 2017 40,000 $ 2.00 Exercisable, June 30, 2017 40,000 $ 2.00

Stockholders' Equity, Disclos28

Stockholders' Equity, Disclosure: Schedule of Stockholders' Equity Note, Warrants (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Stockholders' Equity Note, Warrants	Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Life (Years) Balance, December 31, 2016 2,000,304 $ 2.36 0.63 Granted -- -- -- Exercised -- -- -- Cancelled (523,326) $ 3.00 -- Balance, June 30, 2017 1,476,978 $ 2.13 0.30

Net Loss Per Common Share, Di29

Net Loss Per Common Share, Disclosure: Schedule of Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Earnings Per Share	Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Net loss from continuing operations $ (42,851) $ (46,460) $ (118,478) $ (178,081) Net loss from discontinued operations -- 3,260 -- 1,256 Net Loss (42,851) (43,200) (118,478) (176,825) Basic and diluted: Preferred stock cumulative dividend - Series D (10,706) (10,706) (21,294) (21,411) Income applicable to preferred stockholders (10,706) (10,706) (21,294) (21,411) Net loss applicable to common stockholders $ (53,557) $ (53,906) $ (139,772) $ (198,236) Weighted average shares outstanding used in calculating net loss per common share 11,017,388 11,017,388 11,017,388 11,017,388

Supplemental Cash Flow Inform30

Supplemental Cash Flow Information, Disclosure: Schedule of Cash Flow, Supplemental Disclosures (Tables)	6 Months Ended
	Jun. 30, 2017
Tables/Schedules
Schedule of Cash Flow, Supplemental Disclosures	Six Months ended June 30, 2017 2016 Cash paid for interest $ -- $ 6,723 Cash paid for income taxes $ -- $ -- Non-cash investing and financing transactions Series D Dividend payable in accrued expenses $ 21,294 $ 21,411

Summary of Significant Accoun31

Summary of Significant Accounting Policies: Going Concern and Management's Plan (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Details
Net loss from continuing operations	$ 42,851	$ 46,460	$ 118,478	$ 178,081
Net cash used in operating activities from continuing operations			76,288	44,176
Cash and cash equivalents	$ 1,949		1,949		$ 3,237
Proceeds from issuance of senior secured notes payable			$ 75,000	$ 15,000

Discontinued Operations, Disc32

Discontinued Operations, Disclosure: Schedules of Discontinued Operations (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Details
Expense related to discontinued operations	$ 48	$ (1,792)
Other income (expense) related to discontinued operations	3,308	(536)
Net income (loss) from discontinued operations	$ 3,260	$ 1,256

Notes Payable, Disclosure_ Sc33

Notes Payable, Disclosure: Schedule of Notes Payable (Details) - USD ($)	12 Months Ended
	Dec. 31, 2015	Jun. 30, 2017	Dec. 31, 2016
Notes payable, principal balance		$ 1,687,341
Accrued interest		566,530	$ 441,174
Warrants issued	139,997
Warrants fair value - discount	$ 115,159
Unsecured Notes Payable
Notes payable, principal balance		420,000
Accrued interest		113,280
Warrants issued	139,997
Warrants fair value - discount	$ 115,159
Secured Notes Payable
Notes payable, principal balance		1,037,361
Accrued interest		379,381
Revolving line of credit
Notes payable, principal balance		229,980
Accrued interest		$ 73,869

Stockholders' Equity, Disclos34

Stockholders' Equity, Disclosure: Schedule of Stock Option Activity (Details) - $ / shares	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Details
Number of options outstanding	237,500	269,500
Weighted average exercise price, options outstanding	$ 1.89	$ 1.88
Number of options cancelled	(32,000)
Weighted average exercise price, options cancelled	$ 1.75
Number of options exercisable	237,500
Weighted average exercise price, options exercisable	$ 1.89

Stockholders' Equity, Disclos35

Stockholders' Equity, Disclosure (Details)	6 Months Ended
	Jun. 30, 2016USD ($)
Details
Stock-based compensation	$ 6,691

Stockholders' Equity, Disclos36

Stockholders' Equity, Disclosure: Schedule of Performance Stock Options (Details) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Details
Performance Stock options outstanding	40,000	40,000
Weighted average exercise price, performance stock options outstanding	$ 2	$ 2
Performance Stock options exercisable	40,000

Stockholders' Equity, Disclos37

Stockholders' Equity, Disclosure: Schedule of Stockholders' Equity Note, Warrants (Details) - $ / shares	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Details
Warrants outstanding	1,476,978	2,000,304
Weighted average exercise price, warrants	$ 2.13	$ 2.36
Warrants cancelled	(523,326)

Net Loss Per Common Share, Di38

Net Loss Per Common Share, Disclosure: Schedule of Earnings Per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net loss from continuing operations	$ (42,851)	$ (46,460)	$ (118,478)	$ (178,081)
Net income (loss) from discontinued operations		3,260		1,256
Net loss	(42,851)	(43,200)	(118,478)	(176,825)
Net income (loss) available to preferred stockholders	(10,706)	(10,706)	(21,294)	(21,411)
Net loss applicable to common stockholders	$ (53,557)	$ (53,906)	$ (139,772)	$ (198,236)
Weighted average shares outstanding	11,017,388	11,017,388	11,017,388	11,017,388
Series D Dividend
Dividends paid or accrued on preferred stock	$ (10,706)	$ (10,706)	$ (21,294)	$ (21,411)

Commitments and Contingencies39

Commitments and Contingencies, Disclosure (Details)	Jun. 30, 2017USD ($)
Details
Accounts payable and accrued expenses from continuing operations	$ 238,806
Debt and accrued interest from continuing operations	$ 2,253,871

Related Party Transactions, D40

Related Party Transactions, Disclosure (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Accrued interest	$ 566,530		$ 566,530		$ 441,174
Secured notes payable - Mr. Yorke
Due to related party	1,037,361		1,037,361		$ 962,361
Revolving line of credit - Mr. Yorke
Due to related party	138,000		138,000
Mr. Yorke (Director)
Interest and/or dividends earned	48,093	$ 47,316	94,889	$ 97,055
Accrued interest	$ 427,455	$ 332,566	$ 427,455	$ 332,566

Supplemental Cash Flow Inform41

Supplemental Cash Flow Information, Disclosure: Schedule of Cash Flow, Supplemental Disclosures (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Details
Cash paid for interest		$ 6,723
Series D Dividend payable in accrued expenses	$ 21,294	$ 21,411

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Sep. 21, 2017	Aug. 07, 2017	Jul. 26, 2017	Jun. 30, 2017	Jun. 30, 2016
Secured note entered into				$ 75,000	$ 15,000
July 26, 2017
Secured note entered into			$ 15,000
August 7, 2017
Secured note entered into		$ 105,000
September 21, 2017
Secured note entered into	$ 132,000