TurnKey Capital (TKCI) 10-Q 25 Oct 19 2019 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2019	Oct. 25, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	TurnKey Capital, Inc.
Entity Central Index Key	0001567503
Document Type	10-Q
Entity Shell Company	true
Amendment Flag	false
Document Period End Date	Sep. 30, 2019
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding		422,699
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity File Number	333-186282
Entity Incorporation	NV

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)		Sep. 30, 2019	Dec. 31, 2018
Current Assets
Cash		$ 321	$ 3,398
Total current assets		321	3,398
Computer equipment, net		1,430	1,805
Total assets		1,751	5,203
Current Liabilities
Accounts payable and accrued expenses		4,317	10,565
Advances payable		200,000	200,000
Accounts payable - related parties	[1]	477,984	302,483
Advances - related party	[2]	364,003	312,113
Total Current Liabilities		1,046,304	825,161
Long Term Liabilities
Commitments and Contingencies (Note 1)
Stockholders' Deficit
Preferred stock, $0.001 par value, 5,000,000 shares authorized; 600,000 shares issued and outstanding		600	600
Common stock, $0.001 par value, 750,000,000 shares authorized; 422,699 shares issued and outstanding		423	423
Additional paid-in capital		1,202,147	1,202,147
Accumulated deficit		(2,247,723)	(2,023,128)
Total stockholders' deficit		(1,044,553)	(819,958)
Total liabilities and stockholders' deficit		$ 1,751	$ 5,203
[1]	The accounts payable - related parties represents (a) amounts owed to R3 Accounting for accounting related services and are payable on demand and (b) amounts owed to TBG for management and consulting services such as corporate strategic planning and financial strategy and are payable on demand. Effective July 1, 2019 the Company revised its existing agreement with TBG to increase the monthly fee from $10,000 to $25,000.
[2]	Represents advances of cash from TBG to us which are payable on demand and are non-interest bearing.

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value per share	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	600,000	600,000
Preferred stock, shares outstanding	600,000	600,000
Common stock, par value per share	$ 0.001	$ 0.001
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	422,699	422,699
Common stock, shares outstanding	422,699	422,699

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Income
Revenue - related party				$ 60,000
Operating Expenses
General and administrative	1,851	2,983	14,975	17,191
Other operations expense				21,598
Professional fees - related party	90,000	52,500	180,000	158,350
Legal and professional	2,332	8,500	29,620	29,075
Total operating expenses	94,183	63,983	224,595	226,214
Loss from operations	(94,183)	(63,983)	(224,595)	(166,214)
Other Expenses
Settlement expense				(129,070)
Loss before income taxes	(94,183)	(63,983)	(224,595)	(295,284)
Provision for income taxes
Net loss	$ (94,183)	$ (63,983)	$ (224,595)	$ (295,284)
Net loss per common share basic and diluted	$ (0.22)	$ (0.15)	$ (0.53)	$ (0.74)
Weighted average common shares outstanding basic and diluted	422,699	420,210	422,699	401,617

Condensed Consolidated Statem_2

Condensed Consolidated Statement Stockholders' Equity Deficit - USD ($)		Preferred Stock [Member]	Common Stock [Member]		Additional Paid-in Capital [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2017		$ 600	$ 393		$ 1,073,107	$ (1,672,371)	$ (598,271)
Balance, shares at Dec. 31, 2017		600,000	392,699	[1]
Net loss (unaudited)						(162,217)	(162,217)
Balance (unaudited) at Mar. 31, 2018		$ 600	$ 393		1,073,107	(1,834,588)	(760,488)
Balance, shares at Mar. 31, 2018		600,000	392,699	[1]
Balance at Dec. 31, 2017		$ 600	$ 393		1,073,107	(1,672,371)	(598,271)
Balance, shares at Dec. 31, 2017		600,000	392,699	[1]
Net loss (unaudited)							(295,284)
Balance (unaudited) at Sep. 30, 2018		$ 600	$ 423		1,202,147	(1,967,655)	(764,485)
Balance, shares at Sep. 30, 2018		600,000	422,699	[1]
Balance at Mar. 31, 2018		$ 600	$ 393		1,073,107	(1,834,588)	(760,488)
Balance, shares at Mar. 31, 2018		600,000	392,699	[1]
Net loss (unaudited)						(69,084)	(69,084)
Balance (unaudited) at Jun. 30, 2018		$ 600	$ 393		1,073,107	(1,903,672)	(829,572)
Balance, shares at Jun. 30, 2018		600,000	392,699	[1]
Stock issued for settlement of legal action			$ 30		129,040		129,070
Stock issued for settlement of legal action, shares	[1]		30,000
Net loss (unaudited)						(63,983)	(63,983)
Balance (unaudited) at Sep. 30, 2018		$ 600	$ 423		1,202,147	(1,967,655)	(764,485)
Balance, shares at Sep. 30, 2018		600,000	422,699	[1]
Balance at Dec. 31, 2018		$ 600	$ 423		1,202,147	(2,023,128)	(819,958)
Balance, shares at Dec. 31, 2018		600,000	422,699	[1]
Net loss (unaudited)						(71,847)	(71,847)
Balance (unaudited) at Mar. 31, 2019		$ 600	$ 423		1,202,147	(2,094,975)	(891,805)
Balance, shares at Mar. 31, 2019		600,000	422,699	[1]
Balance at Dec. 31, 2018		$ 600	$ 423		1,202,147	(2,023,128)	(819,958)
Balance, shares at Dec. 31, 2018		600,000	422,699	[1]
Net loss (unaudited)							(224,595)
Balance (unaudited) at Sep. 30, 2019		$ 600	$ 423		1,202,147	(2,247,723)	(1,044,553)
Balance, shares at Sep. 30, 2019		600,000	422,699	[1]
Balance at Mar. 31, 2019		$ 600	$ 423		1,202,147	(2,094,975)	(891,805)
Balance, shares at Mar. 31, 2019		600,000	422,699	[1]
Net loss (unaudited)						(58,565)	(58,565)
Balance (unaudited) at Jun. 30, 2019		$ 600	$ 423		1,202,147	(2,153,540)	(950,370)
Balance, shares at Jun. 30, 2019		600,000	422,699	[1]
Net loss (unaudited)						(94,183)	(94,183)
Balance (unaudited) at Sep. 30, 2019		$ 600	$ 423		$ 1,202,147	$ (2,247,723)	$ (1,044,553)
Balance, shares at Sep. 30, 2019		600,000	422,699	[1]
[1]	Shares have been restated, as appropriate, to reflect 1-for-100 reverse stock split.

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net loss	$ (224,595)	$ (295,284)
Adjustments to reconcile net loss to net cash (used in operating activities:
Depreciation	375	175
Changes in assets and liabilities:
(Decrease) increase in accounts payable and accrued expenses	(6,248)	109,892
Increase in accounts payable - related party	175,501	129,092
Net cash used in operating activities	(54,967)	(56,125)
Cash flows from investing activities -
Purchase of furniture and equipment		(2,105)
Cash flows from financing activities -
Increase in advances - related parties	51,890	56,205
Net decrease in cash	(3,077)	(2,025)
Cash at beginning of period	3,398	2,025
Cash at end of period	321
Supplemental disclosures of cash flow information
Cash paid during the period for: Taxes paid
Cash paid during the period for: Interest paid
Noncash transaction -
Reclassification of settlement expense from other liabilities to common stock (see Note 5)		$ 129,070

GENERAL

GENERAL	9 Months Ended
	Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	NOTE 1- GENERAL Organization TurnKey Capital, Inc. (“TKCI”, “the Company,” “we,”, “our”, or “us”) was incorporated under the laws of the State of Nevada under the name of Vanell, Corp. on September 7, 2012 (“Inception”). The Company changed its name to Train Travel Holdings, Inc. on March 20, 2014 and to TurnKey Capital, Inc. on January 15, 2016 as a result of changes in its line of business. We are a shell company as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended. Our wholly owned subsidiaries are Remote Office Management, Inc. (“ROM”), which was formed in 2016 and is discussed below, and Turnkey Home Buyers USA, Inc., which was formed in 2014 and was inactive in 2019 and 2018. The Company does not have any paid employees; however, the Company’s officers and directors continue to work to further the Company’s business objectives. ROM Business ROM was formed to market bundled accounting and computer/information technology (“IT”) services. Simultaneously, ROM entered into a professional services agreement with R3 Accounting (an accounting firm owned by Timothy Hart, a director, secretary and CFO of the Company) (“R3 Accounting”), and PC Lauderdale (an unrelated computer/IT company). The purpose of the agreement was to form a joint venture whereby these entities would cross-market professional services under ROM for one stop computer/IT and accounting services. ROM was inactive during 2019 and did not generate any revenue. Through ROM, we generated revenues of $60,000 for the nine month period ended September 30, 2018 from accounting services. These services were provided to MediXall Group, Inc. (“MediXall”). MediXall is a public reporting company. Each of Mr. Swartz, our President, CEO and director, and Mr. Hart, our CFO and director, is a significant stockholder of MediXall. Mr. Swartz is MediXall’s Interim CEO and Chairman of the Board, and Mr. Hart is MediXall’s CFO and a member of MediXall’s board of directors. In addition, TBG Holdings, Inc. (“TBG”) is a significant stockholder of MediXall. Messrs. Swartz and Hart are both officers and major shareholders of TBG. As such, Messrs. Swartz and Hart may be deemed to be beneficial holders of the MediXall shares held by TBG. Basis of Presentation The accompanying unaudited, condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s condensed consolidated financial position as of September 30, 2019 and the consolidated results of operations and cash flows for the periods presented. The condensed consolidated results of operations for interim periods are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2019. The accompanying unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on April 17, 2019. On August 28, 2019, the Company’s Board of Directors approved a 1-for-100 reverse stock split (“the reverse stock split). On September 13, 2019, the Company effected the reverse stock split, reducing the number of common shares outstanding from 42,264,665 to 422,699, of which approximately 27% was controlled by related parties. As a result of the reverse stock split, every 100 shares of issued and outstanding common stock were combined into one issued and outstanding share of common stock, without any change in the par value per share. All prior year share amounts and per share calculations have been retrospectively adjusted to reflect the impact of this reverse stock split and to provide data on comparable basis. Such restatements include calculations regarding the Company’s weighted average shares and loss per share. Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. As of September 30, 2019, the Company had $321 of cash and an accumulated deficit of $2,247,723 and further losses are anticipated in the development of its business, raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company developing profitable operations in the future and/or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. There is no assurance that these events will be satisfactorily completed. We expect TBG to continue to provide support services and advances until sufficient capital is raised. The advances are due on demand and are non-interest bearing. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty. Income Taxes The Company accounts for income taxes using the liability method prescribed by GAAP. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset the deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. Pursuant to accounting standards related to the accounting for uncertainty in income taxes, the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. The accounting standard also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. The Company assessed its earning history, trends and estimates of future earnings and determined that the deferred tax asset could not be realized as of September 30, 2019. Accordingly, a valuation allowance was recorded against the net deferred tax asset. Revenue Recognition The Company records revenue when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) service delivery has occurred, (3) the sales price to the customer is fixed and determinable, and (4) collectability is reasonably assured. Revenue is recognized at point of sale, with no further obligations. Fair Value Measurement The Company measures fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The Company utilizes a three-tier hierarchy which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: Level 1. Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. The Company has no assets or liabilities valued with Level 1 inputs. Level 2. Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. The Company has no assets or liabilities valued with Level 2 inputs. Level 3. Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company has no assets or liabilities valued with Level 3 inputs. Fair Value of Financial Instruments The carrying value of cash, accounts payable, accrued liabilities and related party advances approximates their fair values because of the short-term nature of these instruments and their liquidity. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments. Loss Per Share The computation of basic loss per share (“LPS”) is based on the weighted-average number of shares of common stock that were outstanding during the period, including shares of common stock that are issuable at the end of the reporting period. The computation of diluted LPS is based on the number of basic weighted-average shares of common stock outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares of common stock outstanding using the treasury stock method. The computation of diluted net loss per share does not assume conversion, exercise or contingent issuance of securities that would have an antidilutive effect on loss per share. Therefore, when calculating LPS if the Company experienced a loss, there is no inclusion of dilutive securities as their inclusion in the LPS calculation is antidilutive. Following is the computation of basic and diluted net loss per share for the three and nine month periods ended September 30, 2019 and 2018 (as amended for a 1-for-100 reverse stock split): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Basic and Diluted LPS Computation Numerator: Loss available to common stockholders $ (94,183 ) (63,983 ) $ (224,595 ) $ (295,284 ) Denominator: Weighted average number of common shares outstanding 422,699 420,210 422,699 401,617 Basic and diluted LPS $ (0.22 ) $ (0.15 ) $ (0.53 ) $ (0.74 ) Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares): Preferred stock (convertible) 291,000 291,000 291,000 291,000 Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, “Compensation – Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting,” to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this update took effect in 2019. The adoption of this guidance did not have a material impact on the Company's condensed consolidated financial statements.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 2 – RELATED PARTY TRANSACTIONS Amounts due to related parties at September 30, 2019 and December 31, 2018 are detailed below: September 30, December 31, 2019 2018 Accounts payable - related parties $ 477,984 (1) $ 302,483 (1) Advances - related parties $ 364,003 (2) $ 312,113 (2) ——————— (1) The accounts payable – related parties represents (a) amounts owed to R3 Accounting for accounting related services and are payable on demand and (b) amounts owed to TBG for management and consulting services such as corporate strategic planning and financial strategy and are payable on demand. Effective July 1, 2019 the Company revised its existing agreement with TBG to increase the monthly fee from $10,000 to $25,000. (2) Represents advances of cash from TBG to us which are payable on demand and are non-interest bearing. During the three and nine month periods ended September 30, 2019, the Company incurred $75,000 and $135,000 of expense related to TBG management fees and $15,000 and $45,000 of accounting fees owed to R3 Accounting, respectively. During the three and nine month periods ended September 30, 2018, the Company incurred $30,000 and $90,000 of expense related to TBG Holdings management fees and $22,500 and $68,350 of accounting fees owed to R3 Accounting, respectively. ROM was inactive during 2019 and did not generate any revenue. Through ROM, we generated revenues of $0 and $60,000 during the three and nine month periods ended September 30, 2018, respectively. These services were provided to affiliates. All of the revenues were from MediXall, a related party.

ADVANCES PAYABLE

ADVANCES PAYABLE	9 Months Ended
	Sep. 30, 2019
Advances Payable
ADVANCES PAYABLE	NOTE 3 – ADVANCES PAYABLE During 2015, the Company received proceeds of $200,000 that were contingent upon completion of a business transaction. During 2016, it became clear that the transaction would not be consummated. The Board of Directors is considering various alternatives to satisfy this liability and has proposed to issue 20,000 (as amended for a 1-for-100 reverse stock split) shares of common stock at $10 per share (as amended for a 1-for-100 reverse stock split). As of September 30, 2019, the liability is still unpaid. The advances payable have no stated maturity and bear no interest.

PREFERRED STOCK

PREFERRED STOCK	9 Months Ended
	Sep. 30, 2019
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
PREFERRED STOCK	NOTE 4– PREFERRED STOCK The 600,000 outstanding preferred shares are convertible into 291,000 common shares. The preferred shares are held by Timothy Hart, CFO, and Neil Swartz, CEO, who are also members of the Company’s board of directors. The preferred shares do not pay dividends. The number of votes for the preferred shares shall be the same as the amount of shares of common shares that would be issued upon conversion.

DEFINITIVE AGREEMENT

DEFINITIVE AGREEMENT	9 Months Ended
	Sep. 30, 2019
Commitments and Contingencies Disclosure [Abstract]
DEFINITIVE AGREEMENT	NOTE 5 – DEFINITIVE AGREEMENT On September 13, 2019, the Company entered into a Definitive Acquisition Agreement (the “ EGG is a brand new model for healthcare and wellness that brings together top physicians and wellness professionals into co-practicing communities with shared access to a full-stack technology platform – scheduling, billing, client acquisition, and telemedicine – and flexible access to beautiful office space designed to optimize both the physician and client experience. This model creates a compelling new option for re-tenanting traditional shopping centers and mixed-use space that landlords see as a true traffic generator.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 6 – SUBSEQUENT EVENTS The Company has evaluated subsequent events through the filing of this Current Report on Form 10-Q, and determined that there have been no events that have occurred that would require adjustment or disclosure in the unaudited condensed consolidated financial statements.

GENERAL (Policies)

GENERAL (Policies)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Organization	Organization TurnKey Capital, Inc. (“TKCI”, “the Company,” “we,”, “our”, or “us”) was incorporated under the laws of the State of Nevada under the name of Vanell, Corp. on September 7, 2012 (“Inception”). The Company changed its name to Train Travel Holdings, Inc. on March 20, 2014 and to TurnKey Capital, Inc. on January 15, 2016 as a result of changes in its line of business. We are a shell company as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended. Our wholly owned subsidiaries are Remote Office Management, Inc. (“ROM”), which was formed in 2016 and is discussed below, and Turnkey Home Buyers USA, Inc., which was formed in 2014 and was inactive in 2019 and 2018. The Company does not have any paid employees; however, the Company’s officers and directors continue to work to further the Company’s business objectives. ROM Business ROM was formed to market bundled accounting and computer/information technology (“IT”) services. Simultaneously, ROM entered into a professional services agreement with R3 Accounting (an accounting firm owned by Timothy Hart, a director, secretary and CFO of the Company) (“R3 Accounting”), and PC Lauderdale (an unrelated computer/IT company). The purpose of the agreement was to form a joint venture whereby these entities would cross-market professional services under ROM for one stop computer/IT and accounting services. ROM was inactive during 2019 and did not generate any revenue. Through ROM, we generated revenues of $60,000 for the nine month period ended September 30, 2018 from accounting services. These services were provided to MediXall Group, Inc. (“MediXall”). MediXall is a public reporting company. Each of Mr. Swartz, our President, CEO and director, and Mr. Hart, our CFO and director, is a significant stockholder of MediXall. Mr. Swartz is MediXall’s Interim CEO and Chairman of the Board, and Mr. Hart is MediXall’s CFO and a member of MediXall’s board of directors. In addition, TBG Holdings, Inc. (“TBG”) is a significant stockholder of MediXall. Messrs. Swartz and Hart are both officers and major shareholders of TBG. As such, Messrs. Swartz and Hart may be deemed to be beneficial holders of the MediXall shares held by TBG.
Basis of Presentation	Basis of Presentation The accompanying unaudited, condensed consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information, and the Securities and Exchange Commission (“SEC”) rules for interim financial reporting. Certain information and footnote disclosures normally included in the condensed consolidated financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations. However, in the opinion of management, the accompanying interim condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the Company’s condensed consolidated financial position as of September 30, 2019 and the consolidated results of operations and cash flows for the periods presented. The condensed consolidated results of operations for interim periods are not necessarily indicative of the results of operations to be expected for any subsequent interim period or for the fiscal year ending December 31, 2019. The accompanying unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2018 included in the Company’s Annual Report on Form 10-K, which was filed with the SEC on April 17, 2019. On August 28, 2019, the Company’s Board of Directors approved a 1-for-100 reverse stock split (“the reverse stock split). On September 13, 2019, the Company effected the reverse stock split, reducing the number of common shares outstanding from 42,264,665 to 422,699, of which approximately 27% was controlled by related parties. As a result of the reverse stock split, every 100 shares of issued and outstanding common stock were combined into one issued and outstanding share of common stock, without any change in the par value per share. All prior year share amounts and per share calculations have been retrospectively adjusted to reflect the impact of this reverse stock split and to provide data on comparable basis. Such restatements include calculations regarding the Company’s weighted average shares and loss per share.
Going Concern	Going Concern The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. As of September 30, 2019, the Company had $321 of cash and an accumulated deficit of $2,247,723 and further losses are anticipated in the development of its business, raising substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon the Company developing profitable operations in the future and/or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. There is no assurance that these events will be satisfactorily completed. We expect TBG to continue to provide support services and advances until sufficient capital is raised. The advances are due on demand and are non-interest bearing. The unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Income Taxes	Income Taxes The Company accounts for income taxes using the liability method prescribed by GAAP. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset the deferred tax assets if, based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date. Pursuant to accounting standards related to the accounting for uncertainty in income taxes, the evaluation of a tax position is a two-step process. The first step is to determine whether it is more likely than not that a tax position will be sustained upon examination, including the resolution of any related appeals or litigation based on the technical merits of that position. The second step is to measure a tax position that meets the more-likely-than-not threshold to determine the amount of benefit to be recognized in the financial statements. A tax position is measured at the largest amount of benefit that is greater than 50% likelihood of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent period in which the threshold is met. Previously recognized tax positions that no longer meet the more-likely-than not criteria should be de-recognized in the first subsequent financial reporting period in which the threshold is no longer met. The accounting standard also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosures and transition. The Company assessed its earning history, trends and estimates of future earnings and determined that the deferred tax asset could not be realized as of September 30, 2019. Accordingly, a valuation allowance was recorded against the net deferred tax asset.
Revenue Recognition	Revenue Recognition The Company records revenue when all of the following have occurred: (1) persuasive evidence of an arrangement exists, (2) service delivery has occurred, (3) the sales price to the customer is fixed and determinable, and (4) collectability is reasonably assured. Revenue is recognized at point of sale, with no further obligations.
Fair Value Measurement	Fair Value Measurement The Company measures fair value as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. The Company utilizes a three-tier hierarchy which prioritizes the inputs used in the valuation methodologies in measuring fair value as follows: Level 1. Valuations based on quoted prices in active markets for identical assets or liabilities that an entity has the ability to access. The Company has no assets or liabilities valued with Level 1 inputs. Level 2. Valuations based on quoted prices for similar assets or liabilities, quoted prices for identical assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities. The Company has no assets or liabilities valued with Level 2 inputs. Level 3. Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company has no assets or liabilities valued with Level 3 inputs.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The carrying value of cash, accounts payable, accrued liabilities and related party advances approximates their fair values because of the short-term nature of these instruments and their liquidity. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.
Loss Per Share	Loss Per Share The computation of basic loss per share (“LPS”) is based on the weighted-average number of shares of common stock that were outstanding during the period, including shares of common stock that are issuable at the end of the reporting period. The computation of diluted LPS is based on the number of basic weighted-average shares of common stock outstanding plus the number of common shares that would be issued assuming the exercise of all potentially dilutive common shares of common stock outstanding using the treasury stock method. The computation of diluted net loss per share does not assume conversion, exercise or contingent issuance of securities that would have an antidilutive effect on loss per share. Therefore, when calculating LPS if the Company experienced a loss, there is no inclusion of dilutive securities as their inclusion in the LPS calculation is antidilutive. Following is the computation of basic and diluted net loss per share for the three and nine month periods ended September 30, 2019 and 2018 (as amended for a 1-for-100 reverse stock split): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Basic and Diluted LPS Computation Numerator: Loss available to common stockholders $ (94,183 ) (63,983 ) $ (224,595 ) $ (295,284 ) Denominator: Weighted average number of common shares outstanding 422,699 420,210 422,699 401,617 Basic and diluted LPS $ (0.22 ) $ (0.15 ) $ (0.53 ) $ (0.74 ) Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares): Preferred stock (convertible) 291,000 291,000 291,000 291,000
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2018-07, “Compensation – Stock Compensation (Topic 718) - Improvements to Nonemployee Share-Based Payment Accounting,” to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost (that is, the period of time over which share-based payment awards vest and the pattern of cost recognition over that period). The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, Revenue from Contracts with Customers. The amendments in this update took effect in 2019. The adoption of this guidance did not have a material impact on the Company's condensed consolidated financial statements.

GENERAL (Tables)

GENERAL (Tables)	9 Months Ended
	Sep. 30, 2019
Accounting Policies [Abstract]
Schedule of computation of basic and diluted net loss per share	Following is the computation of basic and diluted net loss per share for the three and nine month periods ended September 30, 2019 and 2018 (as amended for a 1-for-100 reverse stock split): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Basic and Diluted LPS Computation Numerator: Loss available to common stockholders $ (94,183 ) (63,983 ) $ (224,595 ) $ (295,284 ) Denominator: Weighted average number of common shares outstanding 422,699 420,210 422,699 401,617 Basic and diluted LPS $ (0.22 ) $ (0.15 ) $ (0.53 ) $ (0.74 )
Schedule of potentially dilutive securities not included in the calculation of diluted net loss per share	Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares): Preferred stock (convertible) 291,000 291,000 291,000 291,000

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	9 Months Ended
	Sep. 30, 2019
Related Party Transactions [Abstract]
Schedule of amounts due from and to related parties	Amounts due to related parties at September 30, 2019 and December 31, 2018 are detailed below: September 30, December 31, 2019 2018 Accounts payable - related parties $ 477,984 (1) $ 302,483 (1) Advances - related parties $ 364,003 (2) $ 312,113 (2) ——————— (1) The accounts payable – related parties represents (a) amounts owed to R3 Accounting for accounting related services and are payable on demand and (b) amounts owed to TBG for management and consulting services such as corporate strategic planning and financial strategy and are payable on demand. Effective July 1, 2019 the Company revised its existing agreement with TBG to increase the monthly fee from $10,000 to $25,000. (2) Represents advances of cash from TBG to us which are payable on demand and are non-interest bearing.

GENERAL (Details)

GENERAL (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Numerator:
Loss available to common stockholders'	$ (94,183)	$ (63,983)	$ (224,595)	$ (295,284)
Denominator:
Weighted average number of common shares outstanding	422,699	420,210	422,699	401,617
Basic and diluted LPS	$ (0.22)	$ (0.15)	$ (0.53)	$ (0.74)

GENERAL (Details 1)

GENERAL (Details 1) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Potentially dilutive securities not included in the calculation of diluted net loss per share attributable to common stockholders because to do so would be anti-dilutive are as follows (in common stock equivalent shares):
Convertible Preferred Stock	291,000	291,000	291,000	291,000

GENERAL (Details Narrative)

GENERAL (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 13, 2019	Sep. 12, 2019	Dec. 31, 2018
Accounting Policies [Abstract]
Common stock, shares outstanding	422,699		422,699		422,699	42,264,665	422,699
Cash on hand	$ 321		$ 321				$ 3,398
Accumulated deficit	(2,247,723)		(2,247,723)				$ (2,023,128)
Revenue - related party				$ 60,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)		Sep. 30, 2019	Dec. 31, 2018
Related Party Transactions [Abstract]
Accounts payable - related parties	[1]	$ 477,984	$ 302,483
Advances payable - related parties	[2]	$ 364,003	$ 312,113
[1]	The accounts payable - related parties represents (a) amounts owed to R3 Accounting for accounting related services and are payable on demand and (b) amounts owed to TBG for management and consulting services such as corporate strategic planning and financial strategy and are payable on demand. Effective July 1, 2019 the Company revised its existing agreement with TBG to increase the monthly fee from $10,000 to $25,000.
[2]	Represents advances of cash from TBG to us which are payable on demand and are non-interest bearing.

RELATED PARTY TRANSACTIONS (D_2

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Sep. 30, 2018
Revenue - related party				$ 60,000
TBG Holdings Corporation [Member]
Related party expenses	75,000	30,000	135,000	90,000
R3 Accounting [Member]
Related party expenses	15,000	22,500	45,000	68,350
Remote Office Management, Inc. [Member]
Revenue - related party	$ 0	$ 0	$ 0	$ 60,000

ADVANCES PAYABLE (Details Narra

ADVANCES PAYABLE (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2019	Dec. 31, 2015
Advances Payable
Amount received from anticipated business transaction not consummated		$ 200,000
Number of shares being considered to satisfy liability	20,000
Price per share for shares being considered to satisfy liability	$ 10

PREFERRED STOCK (Details Narrat

PREFERRED STOCK (Details Narrative) - shares	Sep. 30, 2019	Dec. 31, 2018
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Preferred stock, shares outstanding	600,000	600,000
Number of common stock issuable for total shares of convertible preferred stock	291,000

DEFINITIVE AGREEMENT (Details)

DEFINITIVE AGREEMENT (Details)	Sep. 30, 2019shares
Commitments and Contingencies Disclosure [Abstract]
Shares expected to be issued for Definitive Agreement	70,000,000