| Nature of Operations and Summary of Significant Accounting Policies | NOTE 1 - NATURE OF OPERATIONS AND SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES NATURE OF OPERATIONS Sunstock, Inc. (formerly known as Sandgate
Acquisition Corporation) (Sunstock or the Company) was incorporated on July 23, 2012 under the laws
of the State of Delaware to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions.
Sunstock operations to date have been limited to issuing shares of its common stock. Sunstock may attempt to locate and negotiate
with a business entity for the combination of that target company with Sunstock. The combination will normally take the form of
a merger, stock-for-stock exchange or stock-for-assets exchange. In most instances the target company will wish to structure the
business combination to be within the definition of a tax-free reorganization under Section 351 or Section 368 of the Internal
Revenue Code of 1986, as amended. No assurances can be given that Sunstock will be successful in locating or negotiating with any
target company. In December 2014, the Company purchased 100
ounces of silver. In 2015, the Company purchased additional precious metals for $302,429 and shifting more of its capital to the
acquisition of precious metals. The Company holds physical coins and bullion rather than contracts for delivery of precious metals
or certificates. In time of economic crisis, there may be no guarantee of the delivery of precious metals as contracts and certificates
may exceed available stock. Currently, the Company anticipates holding
its precious metals as a long term investment. Depending on market conditions, the Company anticipates holding its silver holdings
until the market price exceeds $50. Likewise, the Company does not plan to sell its gold holdings unless the market price exceeds
$2,500. BASIS OF PRESENTATION The condensed balance sheet as of December
31, 2015, which has been derived from audited financial statements and the interim unaudited condensed financial statements as
of June 30, 2016 and 2015 have been prepared in accordance with Accounting Principles Generally Accepted in the United States of
America (U.S. GAAP) for interim financial information and with the instructions to Securities and Exchange Commission (SEC)
Form 10-Q and Article 8 of SEC Regulation S-X. These condensed financial statements do not include all of the information and footnotes
required by U.S. GAAP for complete financial statements. Therefore, these unaudited condensed financial statements should be read
in conjunction with the Companys audited financial statements and notes thereto for the year ended December 31, 2015, included
in the Companys Form 10-K. The condensed financial statements included
herein as of and for the three and six months ended June 30, 2016 and 2015 are unaudited; however, they contain all normal recurring
accruals and adjustments that, in the opinion of the Companys management, are necessary to present fairly the condensed
financial position of the Company as of June 30, 2016, the condensed results of its operations for the three and six months ended
June 30, 2016 and 2015 and the condensed cash flows for the six months ended June 30, 2016 and 2015. The results of operations
for the six months ended June 30, 2016 are not necessarily indicative of the results to be expected for the full year or any future
interim periods. USE OF ESTIMATES The preparation of financial statements in
conformity with U.S. GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities, 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 could differ from those estimates. Significant estimates made
by the Companys management include but are not limited to valuation of marketable securities, realizability of inventories
and value of stock-based transactions. BUSSINESS SEGMENTS The Company currently operates in one segment
and in one geographic location in the United States of America. Although the Company has dollar store operations and holds quantities
of silver, the Company considers itself to operate in one segment. CONCENTRATION OF RISK Financial instruments that potentially subject
the Company to concentrations of credit risk consist principally of cash. The Company places its cash with high quality banking
institutions. The Company did not have cash balances in excess of the Federal Deposit Insurance Corporation limit as of June 30,
2016. INVENTORIES Inventories consist of merchandise for sale
and are stated at the lower of cost or market determined on a first-in, first-out (FIFO) method. When a purchase contains multiple
copies of the same item, they are stated at average cost. Inventories silver consists primarily
of silver and small amounts of gold held for sale and are stated at cost. Currently, the Company anticipates holding its precious
metals as a long term investment. Depending on market conditions, the Company anticipates holding its silver holdings until the
market price exceeds $50. Likewise, the Company does not plan to sell its gold holdings unless the market price exceeds $2,500. At each balance sheet date, the Company evaluates
its ending inventory quantities on hand and on order and records a provision for excess quantities and obsolescence. Among other
factors, the Company considers historical demand and forecasted demand in relation to the inventory on hand, competitiveness of
product offerings, market conditions and product life cycles when determining obsolescence and net realizable value. In addition,
the Company considers changes in the market value of components in determining the net realizable value of its inventory. Provisions
are made to reduce excess or obsolete inventories to their estimated net realizable values. Once established, write-downs are considered
permanent adjustments to the cost basis of the excess or obsolete inventories. PROPERTY AND EQUIPMENT Property and equipment are stated at cost.
Depreciation is computed using the straight-line method over the estimated useful lives of 3 to 5 years. Any leasehold improvements
are depreciated at the lesser of the useful life of the asset or the lease term. LONG-LIVED ASSETS The Company reviews the carrying values of
its long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount may
not be recoverable. If the expected future cash flow from the use of the asset and its eventual disposition is less than the carrying
amount of the asset, a impairment loss is recognized and measured using the fair value of the related asset. No impairment charges
were incurred for the six months ended June 30, 2016. There can be no assurance, however, that market conditions will not change
or demand for the Companys services will continue, which could result in impairment of long-lived assets in the future. REVENUE RECOGNITION The Company recognizes revenues in accordance
with the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic
605. Accordingly, the Company recognizes revenues when there is persuasive evidence that an arrangement exists, product delivery
and acceptance have occurred, the sales price is fixed or determinable, and collectability of the transaction is assured. INCOME TAXES The Company accounts for income taxes and the
related accounts under the liability method. Deferred tax assets and liabilities are determined based on the differences between
the financial statement carrying amounts and the income tax bases of assets and liabilities. A valuation allowance is applied against
any net deferred tax asset if, based on available evidence, it is more likely than not that some or all of the deferred tax assets
will not be realized. Therefore, the Company has recorded a full valuation allowance against the net deferred tax assets. The Companys
income tax provision consists of state minimum taxes. EARNINGS (LOSS) PER COMMON SHARE Basic earnings (loss) per share represent income
(loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period,
which excluded unvested restricted stock. Diluted earnings (loss) per share reflects additional common shares that would have been
outstanding if dilutive potential common shares had been issued, as well as any adjustment to income (loss) that would result from
the assumed issuance. The potential common shares that may be issued by the Company relate to outstanding stock options and have
been excluded from the computation of diluted earnings (loss) per share because they would reduce the reported loss per share and
therefore have an anti-dilutive effect. As of June 30, 2016, there were no potentially
dilutive shares that were excluded from the diluted earnings (loss) per share as their effect would have been antidilutive for
each of the periods presented. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company measures the fair value of certain
of its financial assets on a recurring basis. A fair value hierarchy is used to rank the quality and reliability of the information
used to determine fair values. Financial assets and liabilities carried at fair value will be classified and disclosed in one of
the following three categories: Level 1 Quoted
prices (unadjusted) in active markets for identical assets or liabilities; Level 2 Inputs other than
Level 1 that are observable, either directly or indirectly, such as unadjusted quoted prices for similar assets and liabilities,
unadjusted quoted prices in the markets that are not active, or other inputs that are observable or can be corroborated by observable
market data for substantially the full term of the assets or liabilities; and Level 3 Unobservable inputs
that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. As of June 30, 2016, the Companys financial
instruments include cash, investments in precious metals, accounts payable and accrued litigation. The carrying amount of cash,
accounts payable, and accrued litigation approximates fair value due to the short-term maturities of these instruments. The fair
value of the marketable securities and investments in precious metals as determined based on quoted prices in active markets for
identical assets are level 1 inputs. STOCK BASED COMPENSATION ASC 718 "Compensation - Stock Compensation"
prescribes accounting and reporting standards for all stock-based payment awards to employees, including employee stock options,
restricted stock, employee stock purchase plans and stock appreciation rights, may be classified as either equity or liabilities.
The Company determines if a present obligation to settle the share-based payment transaction in cash or other assets exists. A
present obligation to settle in cash or other assets exists if: (a) the option to settle by issuing equity instruments lacks commercial
substance or (b) the present obligation is implied because of an entity's past practices or stated policies. If a present obligation
exists, the transaction is recognized as a liability; otherwise, the transaction is recognized as equity. The Company accounts for stock-based compensation
issued to non-employees and consultants in accordance with the provisions of ASC 505-50 "Equity - Based Payments to Non-Employees."
Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable:
(a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction
is determined at the earlier of performance commitment date or performance completion date. |
