| SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE
1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature
of Operations and Organization Indoor
Harvest Corp (the “Company” or “Indoor Harvest”) is a Texas corporation formed on November 23, 2011. Our principal
executive office was located at 7401 W. Slaughter Lane #5078, Austin, Texas 78739, and such address is used in the interim. We are in
the process of establishing new offices. On
August 14, 2019, the Company established a wholly owned subsidiary, IHC Consulting, Inc. (“IHC”), in the State of New York
of the United States of America. IHC Consulting will provide consulting and other services to the Company and others on a contracted
basis. The
Company incorporates development of proprietary technology, mergers, acquisitions, strategic partnerships, and joint ventures as part
of a broad integration strategy. As a platform, Indoor Harvest Corp. cultivates synergistic partnerships within related industries, providing
an opportunity to be part of a more significant play, sharing intellectual capital, technology, access to new capital markets, and liquidity
for owners. Basis
of Presentation The
accompanying unaudited condensed consolidated financial statements have been prepared on the accrual basis of accounting in accordance
with accounting principles generally accepted in the United States of America (“GAAP”) and the requirements of Form 10-Q
and Rule 8-03 of Regulation S-X of the U.S. Securities and Exchange Commission. Accordingly, they may not include all of the information
and disclosures required by accounting principles generally accepted in the United States of America for complete financial statements.
Interim results are not necessarily indicative of results for a full year. In the opinion of management, all adjustments considered necessary
for a fair presentation of the financial position and the results of operations and cash flows for the interim periods have been included.
These interim financial statements should be read in conjunction with the audited financial statements for the year ended December 31,
2022, as not all disclosures required by generally accepted accounting principles for annual financial statements may be presented. Use
of Estimates The
preparation of financial statements in conformity with GAAP 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 could differ from those estimates. Significant
estimates include, but are not limited to, the estimate of percentage of completion on construction contracts in progress at each reporting
period which we rely on as a primary basis of revenue recognition, estimated useful lives of equipment for purposes of depreciation and
the valuation of common shares issued for services, equipment and the liquidation of liabilities. Principles
of Consolidation The
consolidated financial statements include the accounts of the Company and its wholly owned subsidiary. All significant inter-company
accounts and transactions have been eliminated in consolidation. Reclassification Certain
accounts from prior periods have been reclassified to conform to the current period presentation. Net
Loss Per Common Stock Net
loss per share of common stock requires presentation of basic earnings per share on the face of the statements of operations for all
entities with complex capital structures and requires a reconciliation of the numerator and denominator of the basic earnings per share
computation. In the accompanying financial statements, basic loss per share is computed by dividing net loss by the weighted average
number of shares of common stock outstanding during the year. Diluted earnings per share is computed by dividing net income by the weighted
average number of shares of common stock and potentially dilutive outstanding shares of common stock during the period to reflect the
potential dilution that could occur from common shares issuable through contingent share arrangements, stock options and warrants unless
the result would be antidilutive. The
dilutive effect of warrants and stock options subject to vesting and other share-based payment awards is calculated using the “treasury
stock method,” which assumes that the “proceeds” from the exercise of these instruments are used to purchase common
shares at the average market price for the period. The dilutive effect of convertible securities is calculated using the “if-converted
method.” Under the if-converted method, securities are assumed to be converted at the beginning of the period, and the resulting
common shares are included in the denominator of the diluted calculation for the entire period being presented. For
the three months ended June 30, 2023, and 2022, respectively, the following common stock equivalents were excluded from the computation
of diluted net loss per share as the result of the computation was anti-dilutive. SCHEDULE
OF ANTI DILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE
Six Months Ended
June 30,
2023 2022
(shares) (shares)
Series A Preferred Stock - -
Convertible notes - -
Warrant 457,753,846 -
Stock option 854,000,000 820,000,000
Anti dilutive Securities 1,196,753,846 820,000,000 As
defined in ASC 820” Fair Value Measurements,” fair value is the price that would be received to sell an asset or paid to
transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes
market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and
the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally
unobservable. The Company classifies fair value balances based on the observability of those inputs. ASC 820 establishes a fair value
hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices
in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). The
following table summarizes fair value measurements by level at June 30, 2023 and December 31, 2022, measured at fair value on a recurring
basis: SCHEDULE
OF FAIR VALUE OF ASSETS AND LIABILITIES MEASURED ON RECURRING BASIS
June 30, 2023 Level 1 Level 2 Level 3 Total
Assets:
Notes receivables, net $ - $ - $ - $ -
Liabilities:
None $ - $ - $ - $ -
December 31, 2022 Level 1 Level 2 Level 3 Total
Assets:
None $ - $ - $ 163,588 $ 163,588
Assets $ - $ - $ 163,588 $ 163,588
Liabilities:
None $ - $ - $ - $ -
Liabilities $ - $ - $ - $ - |
