Starco Brands (STCB) 10-Q 8 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 27, 2017
Document And Entity Information
Entity Registrant Name	Insynergy Products, Inc
Entity Central Index Key	1,539,850
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		36,263,534
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,017

BALANCE SHEETS (Unaudited)

BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current Assets:
Cash	$ 4,214
Prepaid and other assets	6,636	6,601
Total Current Assets	10,850	6,601
Deposit	3,500	3,500
Total Assets	14,350	10,101
Current Liabilities:
Accounts payable	415,902	417,387
Other payable and accruals	276,275	270,988
Accrued compensation	148,500	87,850
Due to an officer	67,100	1,393
Notes payable	21,400	21,400
Total Current Liabilities	929,177	799,018
Total Liabilities	929,177	799,018
Stockholders' (Deficit):
Common Stock par value $0.001 300,000,000 shares authorized, 27,605,564 and 27,605,564 shares issued, respectively	27,607	27,607
Additional paid in capital	14,553,464	14,553,464
Accumulated deficit	(15,495,898)	(15,369,988)
Total Stockholders' (Deficit)	(914,827)	(788,917)
Total Liabilities and Stockholders' (Deficit)	$ 14,350	$ 10,101

BALANCE SHEETS (Unaudited) (Par

BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2017	Mar. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, Net Allowance		$ 2,300
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	27,605,564	26,296,868
Common stock, shares outstanding	27,605,564	26,296,868

STATEMENTS OF OPERATIONS (Unaud

STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Revenues		$ 22,070
Sales returns and allowances		(6,671)
Net revenue		15,399
Costs of goods sold		(91,601)
Gross margin		(76,202)
Operating Expenses:
Compensation expense	66,250	72,710
Advertising and promotion		2,664
Professional fees	21,384	41,044
General and administrative	37,412	81,714
Total operating expenses	125,046	198,132
Loss from operations	(125,046)	(274,334)
Other Income (Expense):
Interest expense	(864)	(752)
Gain on extinguishment of debt		1,639
Total other income (expense)	(864)	887
Net Loss	$ (125,910)	$ (273,447)
Loss per Share, Basic & Diluted	$ 0	$ (0.01)
Weighted Average Shares Outstanding	27,605,564	26,296,868

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOW FROM OPERATING ACTIVITES:
Net Loss for the Period	$ (125,910)	$ (273,447)
Adjustments to reconcile net loss to net cash used by operating activities:
Deferred compensation		16,324
Depreciation		6,644
Gain on extinguishment of debt		(1,639)
Loss on inventory		126,349
Changes in Operating Assets and Liabilities:
Accounts receivable		93,574
Prepaids & other assets	(35)	(22,258)
Inventory		(34,748)
Accounts payable	(1,485)	208,768
Product returns & allowances		(221,757)
Accrued expenses	65,938	67,107
Net Cash Used in Operating Activities	(61,492)	(35,083)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net Cash Used by Investing Activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Advances from officers	92,988	8,900
Repayment of officer advance	(27,282)	(2,100)
Proceeds from notes payable		36,843
Payments on notes payable		(46,480)
Net Cash Provided by Financing Activities	65,706	(2,837)
Net Increase (decrease) in Cash	4,214	(37,920)
Cash at Beginning of Period		40,485
Cash at End of Period	4,214	2,565
Cash paid during the year for:
Interest
Franchise and income taxes

ORGANIZATION AND DESCRIPTION OF

ORGANIZATION AND DESCRIPTION OF BUSINESS	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Insynergy Products, Inc. (the "Company") was incorporated in the State of Nevada on January 26, 2010, to engage in Direct Response marketing of consumer products with the goal of producing sales through television and/or retail.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to 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 the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. The accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending December 31, 2017. These unaudited condensed financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to 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 the reported amounts of revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates. Recently issued accounting pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN	NOTE 3 – GOING CONCERN As reflected in the accompanying financial statements, the Company has an accumulated deficit of $15,495,898 at March 31, 2017, had a net loss of $125,910 and net cash used in operating activities of $61,492 for the three months ended March 31, 2017. This raises substantial doubt about the Company’s ability to continue as a going concern. The Company currently has no revenue from current operations, with liabilities exceeding its assets. Management is analyzing new potential growth paths and the potential for a restructuring; however, there is still substantial doubt about the Company’s ability to continue as a going concern. The Company is currently performing its due diligence for a corporate reorganization. This due diligence phase, involving counsel and other qualified professionals is necessary in order to cautiously explore appropriate steps to restructure the Company for the purposes of executing a new business model within the Company’s core competencies.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
NOTES PAYABLE	NOTE 4 – NOTES PAYABLE As of March 31, 2017, the Company owes $21,400 on a loan payable. The loan is uncollateralized, non-interest bearing and is due on demand.

COMMITMENTS & CONTIGENCIES

COMMITMENTS & CONTIGENCIES	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
COMMITMENTS & CONTIGENCIES	NOTE 5 – COMMITMENTS & CONTIGENCIES The Company currently occupies office space in Burbank, California. The Company signed a three-year lease starting January 1, 2016. Current monthly lease payments are $3,527 with yearly increases. The lease required a deposit of $3,500 which was paid on December 10, 2015. Minimum lease payments over the next two years are as follows: Year Amount 2017 $ 42,330 2018 43,596 Total $ 127,023 Investment Agreement On July 9, 2014, the Board of Directors approved an investment arrangement with an individual. Per the terms of the agreement the investor has transferred $150,000 to the Company for which he is now entitled to the following: $1 per unit sold through all retail outlets including online and retail shopping shows until the investment is paid back in full. Once the original investment is recouped the investor shall then receive a 2% royalty in perpetuity on all future retail sales of the fitness product. The investment remains with the Company and is disclosed as an accrued liability on the balance sheet. This agreement is currently being renegotiated.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
RELATED PARTY TRANSACTIONS	NOTE 6 – RELATED PARTY TRANSACTIONS During the three months ended March 31, 2017, Sanford Lang, CEO advanced the company $91,453 to pay for general operating expenses; $27,142 of which was paid back. The advances are uncollateralized, non-interest bearing and due on demand. As of March 31, 2017 $64,311 is due to Mr. Lang. During the three months ended March 31, 2017, Marty Goldrod, COO advanced the company $340 to pay for general operating expenses. The advance is uncollateralized, non-interest bearing and due on demand. As of March 31, 2017 $340 is due to Mr. Goldrod. As of March 31, 2017, the Company owed its officers $2,449 for expense reimbursement.

STOCK WARRANTS

STOCK WARRANTS	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
STOCK WARRANTS	NOTE 7 – STOCK WARRANTS Pursuant to a binding Letter of Intent with Ross Sklar (“Sklar”), a related party, dated August 13, 2015, the Company granted warrants to purchase 35,000,000 shares of common stock to Sklar on September 15, 2015. The warrants have an exercise price of $0.23 and a term of ten years. The aggregate fair value of the warrants totaled $6,501,715 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.23, 2.28% risk free rate, 65.24% volatility and expected life of the options of 10 years. Mr. Sklar was also appointed to the Board of Directors designating him a related party. A summary of the status of the Company’s outstanding stock warrants and changes during the periods is presented below: Shares available to purchase with warrants Weighted Average Price Weighted Average Fair Value Outstanding, December 31, 2016 51,000,000 $ 0.23 $ 0.186 Issued - $ - $ - Exercised - $ - $ - Forfeited - $ - $ - Expired - $ - $ - Outstanding, March 31, 2017 51,000,000 $ 0.23 $ 0.186 Exercisable, March 31, 2017 35,000,000 $ 0.23 $ 0.186 Range of Exercise Prices Number Outstanding 3/31/2017 Weighted Average Remaining Contractual Life Weighted Average Exercise Price $0.23 51,000,000 8.38 years $ 0.23

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 8– SUBSEQUENT EVENTS Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855, from the balance sheet date through the date the financial statements were issued, and has determined that no material subsequent events exist other than the following. On April 4, 2017, the Company’s Board of Directors determined it was in the best interest of the Company to issue additional shares to Paul Bershin and Alan Diamante in consideration for funds previously loaned to the Company. Accordingly, the Company issued 3,811,594 shares of common stock to Paul Bershin at $0.03 per share and issued 4,846,376 shares of common stock to Alan Diamante at $0.03 per share.

SUMMARY OF SIGNIFICANT ACCOUN14

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of presentation	Basis of presentation The Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to 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 the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. The accompanying unaudited condensed financial statements reflect all adjustments, consisting of only normal recurring items, which, in the opinion of management, are necessary for a fair statement of the results of operations for the periods shown and are not necessarily indicative of the results to be expected for the full year ending December 31, 2017. These unaudited condensed financial statements should be read in conjunction with the financial statements and related notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.
Use of estimates	Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to 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 the reported amounts of revenues and expenses during the reporting period. Significant estimates include the estimated useful lives of property and equipment. Actual results could differ from those estimates.
Recently issued accounting pronouncements	Recently issued accounting pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

COMMITMENTS & CONTIGENCIES (Tab

COMMITMENTS & CONTIGENCIES (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments Contigencies Tables
Schedule of Operating lease	Year Amount 2017 $ 42,330 2018 43,596 Total $ 127,023

STOCK WARRANTS (Tables)

STOCK WARRANTS (Tables)	3 Months Ended
	Mar. 31, 2017
Notes to Financial Statements
Schedule of Outstanding Stock Warrants	A summary of the status of the Company’s outstanding stock warrants and changes during the periods is presented below: Shares available to purchase with warrants Weighted Average Price Weighted Average Fair Value Outstanding, December 31, 2016 51,000,000 $ 0.23 $ 0.186 Issued - $ - $ - Exercised - $ - $ - Forfeited - $ - $ - Expired - $ - $ - Outstanding, March 31, 2017 51,000,000 $ 0.23 $ 0.186 Exercisable, March 31, 2017 35,000,000 $ 0.23 $ 0.186 Range of Exercise Prices Number Outstanding 3/31/2017 Weighted Average Remaining Contractual Life Weighted Average Exercise Price $0.23 51,000,000 8.38 years $ 0.23

GOING CONCERN (Details Narrativ

GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Going Concern Details Narrative
Accumulated Deficit	$ 15,495,898		$ 15,369,988
Net Loss	$ 125,910	$ 273,447

COMMITMENTS & CONTIGENCIES (Det

COMMITMENTS & CONTIGENCIES (Details)	Mar. 31, 2017USD ($)
Commitments Contigencies Details
2,017	$ 42,330
2,018	43,596
Total	$ 127,023

COMMITMENTS & CONTIGENCIES (D19

COMMITMENTS & CONTIGENCIES (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 10, 2015
Commitments Contigencies Details Narrative
Current Lease payment	$ 3,527
Lease required a deposit		$ 3,500

STOCK WARRANTS (Details)

STOCK WARRANTS (Details)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Shares
Exercisable-end of year (in shares) | shares	51,000,000
Weighted Average Exercise Price
Exercisable-end of year (in dollars per share)	$ 0.23
Weighted Average Fair Value
Exercisable-end of year (in dollars per share)	$ 0.186
Stock Warrants [Member]
Shares
Outstanding-beginning of year (in shares) | shares	51,000,000
Issued | shares
Exercised | shares
Forfieted | shares
Expired | shares
Outstanding-end of year (in shares) | shares	51,000,000
Exercisable-end of year (in shares) | shares	51,000,000
Weighted Average Exercise Price
Outstanding-beginning of year (in dollars per share)	$ 0.23
Issued
Exercised
Forfieted
Expired
Outstanding-end of year (in dollars per share)	0.23
Exercisable-end of year (in dollars per share)	.23
Weighted Average Fair Value
Outstanding-beginning of year (in dollars per share)	0.186
Issued
Exercised
Forfeited
Expired
Outstanding-end of year (in dollars per share)	$ 0.186

STOCK WARRANTS (Details 2)

STOCK WARRANTS (Details 2)	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Shares Outstanding | shares	51,000,000
Weighted Average Exercise Price | $ / shares	$ 0.23
Stock Warrants [Member]
Shares Outstanding | shares	51,000,000
Weighted Average Remaining Contractual Life	8 years 4 months 17 days
Weighted Average Exercise Price | $ / shares	$ .23