Galenfeha (NGHI) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 16, 2016
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Trading Symbol	glfh
Entity Registrant Name	Galenfeha, Inc.
Entity Central Index Key	1,574,676
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		86,126,100
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well Known Seasoned Issuer	No
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash	$ 89,532	$ 47,333
Accounts receivable	102,771	107,424
Accounts receivable from related parties	9,017	336
Inventory	854,290	950,617
Prepaid inventory	14,829	0
Prepaid expenses	2,695	10,083
Total current assets	1,073,134	1,115,793
FIXED ASSETS, net of accumulated depreciation of $26,361 and $21,419, respectively	182,444	187,386
OTHER ASSETS
Goodwill	389,839	389,839
Customer list, net of accumulated amortization of $7,828 and $5,928, respectively	14,970	16,870
Deposits	1,000	1,000
Total other assets	405,809	407,709
TOTAL ASSETS	1,661,387	1,710,888
CURRENT LIABILITIES
Accounts payable and accrued liabilities	149,128	228,014
Accounts payable to related parties	91,562	123,282
Current maturities of long term debt	88,980	95,771
Line of credit	171,000	100,000
Related party convertible note, net of unamortized discounts of $0	125,000	125,000
Derivative liabilities	325,130	0
Total current liabilities	950,800	672,067
LONG TERM DEBT
Convertible notes, net of unamortized discount of $184,627 and $0, respectively	7,873	0
Total liabilities	958,673	672,067
STOCKHOLDERS' EQUITY
Common stock Authorized: 500,000,000 common shares, $0.001 par value, 86,126,100 issued and outstanding at March 31, 2016 and December 31, 2015	86,126	86,126
Additional paid-in capital	3,132,285	3,162,529
Treasury stock	0	0
Accumulated deficit	(2,515,697)	(2,209,834)
Total stockholders' equity	702,714	1,038,821
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,661,387	$ 1,710,888

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 26,361	$ 21,419
Accumulated Amortization, Customer list	7,828	5,928
Related Party Convertible Note, Unamortized Discount	0	0
Convertible Notes, Unamortized Discount	$ 184,627	$ 0
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares, Issued	86,126,100	86,126,100
Common Stock, Shares, Outstanding	86,126,100	86,126,100

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Third Parties	$ 286,039	$ 0
Related Parties	17,382	316,702
Cost of Sales	219,582	194,826
Gross Profit	83,839	121,876
Operating Expenses:
General and administrative	80,183	39,412
Payroll expenses	109,030	111,048
Professional fees	31,420	2,913
Engineering research and development	(21,174)	1,601
Depreciation and amortization expense	6,842	4,847
Total operating expenses	206,301	159,821
Loss from continuing operations	(122,462)	(37,945)
Other (expense) income
Interest income	3	15
Interest expense	(9,824)	(34,824)
Loss on derivative instruments	(173,580)	0
Total other (expense)	(183,401)	(34,809)
Net loss	$ (305,863)	$ (72,754)
Net loss per share, basic and diluted	$ 0	$ 0
Weighted average number of common shares outstanding, basic and diluted	86,126,100	78,442,000

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS EQUITY - 3 months ended Mar. 31, 2016 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Accumulated Treasury Deficit [Member]	Total
Beginning Balance at Dec. 31, 2015	$ 86,126	$ 3,162,529	$ (2,209,834)	$ 1,038,821
Beginning Balance (Shares) at Dec. 31, 2015	86,126,100
Reclass of conversion option to derivative liabilities		(6,175)		(6,175)
Options expense		24,703		24,703
Common shares issued for services		(22,027)		(22,027)
Non-vested options returned and cancelled		(26,745)		(26,745)
Net loss			(305,863)	(305,863)
Ending Balance at Mar. 31, 2016	$ 86,126	$ 3,132,285	$ (2,515,697)	$ 702,714
Ending Balance (Shares) at Mar. 31, 2016	86,126,100

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
OPERATING ACTIVITIES
Net loss	$ (305,863)	$ (72,754)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,842	4,847
Non-vested options forfeited	(26,745)	0
Common shares issued for services	(22,027)	0
Options expense	24,703	0
Loss on derivative instruments	173,580	0
Amortization of debt discounts on convertible notes	7,873	30,822
Changes in Operating Assets and Liabilities:
(Increase) Decrease in accounts receivable	4,653	(317,115)
(Increase) Decrease in accounts receivable from related party	(8,681)	0
(Increase) Decrease in inventory	96,327	(99,311)
(Increase) Decrease in prepaid expenses and other assets	(7,441)	0
Increase (Decrease) in accounts payable and accrued liabilities	(78,886)	45,682
Increase (Decrease) in accounts payable to related parties	(31,720)	0
Net cash used in operating activities	(167,385)	(407,829)
INVESTING ACTIVITIES
Purchase of fixed assets	0	(1,431)
Cash paid for acquisition of subsidiary	0	(53,000)
Net cash used in Investing activities	0	(54,431)
FINANCING ACTIVITIES
Proceeds from line of credit	71,000	0
Payments on notes payable	0	(1,167)
Proceeds from convertible debentures, net of original issue discounts	145,375	0
Payment of deferred financing costs	0	(125,000)
Payments on finance contracts	(6,791)	0
Proceeds from sale of common stock	0	1,087,200
Net cash provided by financing activities	209,584	961,033
INCREASE IN CASH	42,199	498,773
CASH AT BEGINNING OF PERIOD	47,333	94,668
CASH AT END OF PERIOD	89,532	593,441
Cash paid for:
Interest expense	6,901	0
Income taxes	0	0
NONCASH INVESTING AND FINANCING ACTIVITIES
Common stock issued for acquisition of subsidiary	0	191,750
Debt discount due to derivative liabilities	145,375	0
Reclass of conversion option from equity to derivative liabilities	$ 6,175	$ 0

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2016
BASIS OF PRESENTATION [Text Block]	NOTE 1 - BASIS OF PRESENTATION The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at March 31, 2016, and for all periods presented herein, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. It is suggested that these unaudited interim financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2015 audited financial statements included in its Form 10-K filed with the Securities and Exchange Commission. The results of operations for the period ended March 31, 2016 and the same period last year are not necessarily indicative of the operating results for the full years.

GOING CONCERN

GOING CONCERN	3 Months Ended
	Mar. 31, 2016
GOING CONCERN [Text Block]	NOTE 2 - GOING CONCERN The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred net losses and net cash used in operations since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon the Company’s ability to achieve a level of profitability. The Company intends on financing its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including term notes until such time that funds provided by operations are sufficient to fund working capital requirements. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Text Block]	NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES CONCENTRATIONS During the three months ended March 31, 2016, 6% of sales were to a single related party customer. In addition, one other third party customer contributed to 64% of total revenue for three months ended March 31, 2016. For the three months ended March 31, 2015, 100% of sales were to a single related party customer. As of March 31, 2016, accounts receivable from one related party customer comprised 8% of total accounts receivable and accounts receivable from one third party customer comprised 50% of accounts receivable. As of December 31, 2015, accounts receivable from one third party customer comprised 81% of accounts receivable, while another third-party customer comprised 12% of accounts receivable. INVENTORIES Inventories are stated at the lower of cost, determined on a first-in, first-out basis (“FIFO”), or market, including direct material costs and direct and indirect manufacturing costs. Inventory consists of the following amounts as of March 31, 2016 and December 31, 2015. March 31, 2016 December 31, 2015 Raw Materials $ 270,652 $ 311,673 Work In Process - - Finished Goods 583,638 638,944 - Total Inventory $ 854,290 $ 950,617 FAIR VALUE ACCOUNTING As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The following table sets forth by level with the fair value hierarchy the Company’s assets and liabilities measured at fair value as of March 31, 2016: Level 1 Level 2 Level 3 Total Assets None $ — $ — $ — $ — Liabilities Derivative liabilities $ — $ — $ 325,130 $ 325,130

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2016
PROPERTY AND EQUIPMENT [Text Block]	NOTE 4 – PROPERTY AND EQUIPMENT Property and equipment are stated at cost, less accumulated depreciation. Depreciation is recorded using the straight-line method over the estimated useful lives of the related assets, ranging from three to forty years. A summary is as follows: March 31, 2016 December 31, 2015 Manufacturing assets $ 168,015 $ 168,015 Vehicles - - Furniture and equipment 19,318 19,318 Improvements 21,472 21,472 208,805 208,805 Less accumulated depreciation (26,361 ) (21,419 ) Property and equipment, net $ 182,444 $ 187,386 Depreciation expense related to property and equipment was $4,942 and $4,847 for the three months ended March 31, 2016 and 2015, respectively.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2016
NOTES PAYABLE [Text Block]	NOTE 5 – NOTES PAYABLE In 2015, the Company incurred a loan of $13,875 relating to commercial general liability insurance. The note has an interest rate of 8.00%, payable in payments of $1,439 for 10 months. Additionally in 2015, the Company incurred a loan of $6,721 relating to workers compensation, commercial property, and commercial automobile insurance. The note has an interest rate of 0.00%, payable in payments of $1,703 for two months and $663 for five months. The outstanding balance on these finance agreements was $0 and $6,791, as of March 31, 2016 and December 31, 2015, respectively. In August 2015, the Company incurred a loan of $78,593 that is secured by a customer purchase order. The loan has an interest rate of 4.75% payable in four payment of $19,843 with the first payment due on December 28, 2015. Since the prior customer purchase orders had been fulfilled and paid, the loan of $78,593 was repaid by a second loan of $88,980 on December 28, 2015 which was secured by current customer purchase orders. The second loan of $88,980 has an interest rate of 4.75% and is payable in one principal payment of $88,980 plus accrued interest on April 28, 2016. The outstanding balance on this loan was $88,980 as of March 31, 2016 and December 31, 2015. The Company also took out a line of credit of $100,000 on August 5, 2015 which is payable on demand. The line of credit is secured by all present and future inventory, all present and future accounts receivable, other receivables, contract rights, instruments, documents, notes, and all other similar obligation and indebtedness that may now and in the future be owed to the Company, and all general intangibles. On January 15, 2016 the Company’s line of credit was increased from $100,000 to $200,000. The Company withdrew an additional $70,000 in funds from the line of credit and paid loan origination and documentation fees of $1,000 at closing to bring the total outstanding line of credit balance to $171,000 as of January 15, 2016. Under the terms of the new agreement the loan is a fixed rate ( 4.75%) revolving line of credit loan to the Company for $200,000 due on January 15, 2017. Additionally, the line of credit is secured by a deposit account held at the Grantor’s institution which had a cash balance of $9,554 and $11,499 as of March 31, 2016 and December 31, 2015, respectively. Interest only payments were made during the three months ended March 31, 2016. The outstanding balance on the line of credit was $171,000 and $100,000 as of March 31, 2016 and December 31, 2015, respectively. The current maturities and five year debt schedule for the notes is as follows: 2016 $ 88,980 2017 171,000 2018 - 2019 - 2020 - Total current notes payable $ 259,980

CONVERTIBLE LOANS

CONVERTIBLE LOANS	3 Months Ended
	Mar. 31, 2016
CONVERTIBLE LOANS [Text Block]	NOTE 6 – CONVERTIBLE LOANS At March 31, 2016 and December 31, 2015, convertible loans consisted on the following: March 31, 2016 December 31, 2015 February 2016 Note $ 82,500 - March 2016 Note 110,000 - Total notes payable 192,500 - Less: Unamortized debt discounts (184,627 ) - Total convertible loans, net 7,873 - Less: current portion of convertible loans - - Long-term convertible loans, net $ 7,873 - February 2016 Note Effective February 29, 2016 the Company entered into a Convertible Promissory Note (“Vista Note”) with Vista Capital Investments, LLC pursuant to which the Company issued Vista Capital Investments, LLC a convertible note in the amount of $275,000 with an original issue discount in the amount of $25,000. The principal amount due Vista Capital Investments, LLC is based on the consideration paid. The maturity date is two years from the effective date of each payment. On February 29, 2016 the Company received consideration of $75,000 for which an original issue discount of $7,500 was recorded. In addition, the Company recognized a discount of $5,625 on fees paid upon entering into this agreement. There were no additional borrowings under the Vista Note during the quarter ended March 31, 2016. The Vista Note carries an interest rate of 6% which shall be applied on the issuance date to the original principal amount. Accrued interest due under the Vista Note totaled $16,500 at March 31, 2016. The Vista Note provides Vista Capital Investments, LLC the right at any time, to convert the outstanding balance (including accrued and unpaid interest) into shares of the Company’s common stock at 70% of the lowest trade price in the 25 trading days previous to the conversion, additional discounts may apply in the case that conversion shares are not deliverable or if the shares are ineligible. As a result of the derivatives calculation (see Note 8) an additional discount of $52,875 was recorded. Amortization of the debt discount totaled $3,503 for the three months ended March 31, 2016. The principal balance due, net of the amortized discount under the Vista Note was $3,503 at March 31, 2016. March 2016 Note Effective March 2, 2016 the Company entered into a Convertible Promissory Note (“JMJ Note”) with JMJ Financial pursuant to which the Company issued JMJ Financial a convertible note in the amount of $500,000 with an original issue discount in the amount of $50,000. The principal amount due JMJ is based on the consideration paid. The maturity date is two years from the effective date of each payment. On March 2, 2016 the Company received consideration of $100,000 for which an original issue discount of $10,000 was recorded. In addition, the Company recognized a discount of $7,500 on fees paid upon entering into this agreement There were no additional borrowings under the JMJ Note during the quarter ended March 31, 2016. The Company has not currently made any principal payments on the JMJ Note. If the Company doesn’t repay the JMJ Note on or before 90 days from the effective date the Company may not make further payments on this JMJ Note prior to the maturity date and a one-time interest charge of 12% will be applied to the principal amount. No provision for accrued interest was recorded as of March 31, 2016. The JMJ Note provides JMJ Financial the right at any time, to convert the outstanding balance (including accrued and unpaid interest) into shares of the Company’s common stock at 60% of the lowest trade price in the 25 trading days previous to the conversion, additional discounts may apply in the case that conversion shares are not deliverable or if the shares are ineligible. As a result of the derivatives calculation (see Note 8) an additional discount of $92,500 was recorded. Amortization of the debt discount totaled $4,370 for the three months ended March 31, 2016. The principal balance due, net of the amortized discount under the JMJ Note was $4,370 at March 31, 2016.

CONVERTIBLE LOANS RELATED PARTY

CONVERTIBLE LOANS RELATED PARTY	3 Months Ended
	Mar. 31, 2016
CONVERTIBLE LOANS RELATED PARTY [Text Block]	NOTE 7 – CONVERTIBLE LOANS – RELATED PARTY The Company issued a convertible promissory note to a related party in 2014 for $250,000 (see Note 12). The note is convertible into common stock of the Company at $0.50 per share. The intrinsic value of the beneficial conversion feature was determined to be $125,000 at the commitment date and the discount is being amortized over the one year life of the promissory note. As of March 31, 2016, $125,000 of the discount has been amortized as interest expense. Interest amortized for the three months ended March 31, 2016 and 2015 was $0 and $30,822, respectively. The Company repaid $125,000 under this note during the twelve months ended December 31, 2015 and the outstanding balance was $125,000 as of March 31, 2016. This conversion option was accounted for as a derivative liability during the three months ended March 31, 2016 resulting in a reclassification of the fair value of the derivative liability of $6,175 from equity (see Note 8).

DERIVATIVE LIABILITY

DERIVATIVE LIABILITY	3 Months Ended
	Mar. 31, 2016
DERIVATIVE LIABILITY [Text Block]	NOTE 8 – DERIVATIVE LIABILITY During the three months ended March 31, 2016, the Company identified conversion features embedded within its convertible debt. The Company has determined that the conversion feature of the Notes represents an embedded derivative since the Notes are convertible into a variable number of shares upon conversion. Accordingly, the embedded conversion feature must be bifurcated from the debt host and accounted for as a derivative liability. Therefore, the fair value of the derivative instruments have been recorded as liabilities on the balance sheet with the corresponding amount recorded as discounts to the Notes. Such discounts will be accreted from the issuance date to the maturity date of the Notes. The change in the fair value of the derivative liabilities will be recorded in other income or expenses in the statement of operations at the end of each period, with the offset to the derivative liabilities on the balance sheet. The fair value of the embedded derivative liabilities were determined using the Black-Scholes valuation model on the issuance dates with the assumptions in the table below. The change in fair value of the Company’s derivative liabilities for the three months ended March 31, 2016 is as follows: December 31, 2015 fair value $ - Additions recognized as derivative loss at inception 292,899 Additions recognized as note discount at inception 145,375 Reclass from equity to derivative liability 6,175 Gain on change in fair value (119,319 ) March 31, 2016 fair value $ 325,130 The loss on the change in fair value of derivative liabilities the three months ending March 31, 2016 totaled $173,580. The fair value at the issuance and remeasurement dates for the convertible debt treated as derivative liabilities are based upon the following estimates and assumptions made by management for the three months ended March 31, 2016: Exercise prices See Notes 6 and 7 Expected dividends 0% Expected volatility 188%- 400% Expected term See Notes 6 and 7 Discount rate .59%- .85%

SHAREHOLDERS EQUITY

SHAREHOLDERS EQUITY	3 Months Ended
	Mar. 31, 2016
SHAREHOLDERS EQUITY [Text Block]	NOTE 9 - SHAREHOLDERS’ EQUITY COMMON STOCK The authorized common stock of the Company consists of 500,000,000 shares with a par value of $0.001. As of March 31, 2016 and December 31, 2015, 86,126,100 shares of the Company’s common stock were issued and outstanding. In October 2014, the Company entered into an agreement for the issuance of 1,000,000 common shares for CAD/CAM Engineering Design Services for GLFH1200 series battery development. The shares vest in equal installments of 250,000 each year following the date of the agreement. On May 1, 2015, the Company issued 250,000 shares under this award. Since inception through March 31, 2016, $119,325 was expensed under this award and $21,425 remains to be expensed over the remaining service period. This nonemployee award is valued upon completion of services. The fair value of the award as of the reporting date of March 31, 2016 resulted in a reduction to expense during the three months ended March 31, 2016 of $22,027.

OPTIONS

OPTIONS	3 Months Ended
	Mar. 31, 2016
OPTIONS [Text Block]	NOTE 10 - OPTIONS During the year ended December 31, 2015, the Company granted an aggregate of 2,050,000 options to a military sales representative and three employees. Col. Ashton Naylor (Ret) received 100,000 options exercisable at $0.25 per share, Chris Watkins received 750,000 options exercisable at $0.25 per share, Jeff Roach received 1,000,000 options exercisable at $0.20 per share, and Brian Nallin received 200,000 options exercisable at $0.20 per share. These options expire on April 1, 2016; June 11, 2020, February 1, 2017, and December 31, 2017 respectively. The options granted to Brian Nallin vest immediately and the other options vest in equal tranches over periods ranging from 2 to 5 years. The aggregate fair value of the option grants was determined to be $430,839 using the Black-Scholes Option Pricing Model and the following assumptions: volatilities between 218% and 396%, risk free rates between . 27% and 1.74%, expected terms between 1 and 5 years and zero expected dividends. The fair value of the award is being expensed over the vesting periods. $295,553 was expensed during the year ended December 31, 2015 and $24,703 was expensed during the three months ended March 31, 2016. $ Jeff Roach and Brian Nallin both voluntarily terminated employment with the Company on February 12, 2016 resulting in Jeff returning non-vested options back to the Company. This resulted in a reversal of prior period share based compensation and option expense of $26,745 during the three months ended March 31, 2016. As of March 31, 2016, $93,407 remains to be expensed over the remaining vesting period. As of March 31, 2016, there were 1,800,000 options outstanding of which 1,200,000 were exercisable. The range of exercise prices and remaining weighted average life of the options outstanding at March 31, 2016 were $0.20 to $0.25 and 2.37 years, respectively. The aggregate intrinsic value of the outstanding options at March 31, 2016 was $0.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
COMMITMENTS AND CONTINGENCIES [Text Block]	NOTE 11 - COMMITMENTS AND CONTINGENCIES The Company entered into a lease agreement for office and research facilities in Louisiana. One lease is for $10,200 per year for 24 months beginning May 1, 2014. Beginning in May of 2016 this lease is now month to month and is $850 per month. The second lease is $2,600 per month for 24 months beginning on November 1, 2014. Additionally, the Company leases space in Fort Worth, Texas for corporate facilities for $99 monthly or $1,188 per year. The terms of this lease are also month to month. Year Ended Amount 2016 $ 18,200 2017 - 2018 - 2019 - 2020 - $ 18,200 From time to time the Company may be a party to litigation matters involving claims against the Company. Management believes that there are no current matters that would have a material effect on the Company’s financial position or results of operations.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2016
RELATED PARTY TRANSACTIONS [Text Block]	NOTE 12 – RELATED PARTY TRANSACTIONS On November 1, 2014, the Company entered into a Convertible Promissory Note Agreement with Ray Moore Sr., a related party, in the amount of $250,000. The note bears an interest rate of 7% per annum until paid in full. Repayment of the loan is due on or before November 7, 2015. The lender shall have the right to convert this indebtedness to equity shares of Galenfeha at the rate of one share per $.50 of indebtedness for a total of 500,000 shares upon the expiration date, or at any time the Lender desired for the relieve of indebtedness of Maker. As of March 31, 2016, the principal and interest due on the note is $136,699 (the accrued interest of $11,699 is presented as accounts payable to related parties in the consolidated balance sheet). Falcon Resources, LLC & MarionAv, LLC are two companies owned by Board Member, Trey Moore, and CEO/President, Lucien Marioneaux, Jr., respectively. These related party entities provide flight services to employees and directors of the Company. The total amount paid for flight services to Falcon Resources and MarionAv, LLC for the three months ending March 31, 2016 totaled $6,600 and $0, respectively. As of March 31, 2016, the Company had an outstanding accounts payable balance to Falcon Resources, LLC totaling $6,600. Galenfeha sells a portion of its finished goods to Fleaux Services, LLC, a company owned by Board Member, Trey Moore. During the three months ended March 31, 2016, sales to the related company totaled $17,382. As of March 31, 2016, the Company had outstanding receivables from the related party company of $9,017. As of March 31, 2016, the Company had an outstanding accounts payable balance to Fleaux Services, LLC totaling $31,009. During the first quarter of 2016, the Company paid Fleaux Services, LLC $16,152 for inventory and shop supply purchases. Galenfeha purchases component parts used in the assembly of inventory items from River Cities Machine, LLC, a company owned by CEO/President, Lucien Marioneaux, Jr. During the three months ended March 31, 2016 purchases from the related company totaled $960. As of March 31, 2016, the Company had an outstanding accounts payable balance to River Cities Machine, LLC totaling $38,847. Other outstanding accounts payable balances to related parties totaled $3,407 as of March 31, 2016. The amounts are unsecured, due on demand and bear no interest.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
SUBSEQUENT EVENTS [Text Block]	NOTE 13 – SUBSEQUENT EVENTS Effective April 22, 2016 the Company entered into a Convertible Promissory Note (“Auctus Fund Note”) with Auctus Fund, LLC pursuant to which the Company issued Auctus Fund, LLC a convertible note in the amount of $75,000 with an interest rate of 10%. The maturity date is January 22, 2017, upon which both principal and interest are due. The Auctus Fund Note provides Auctus Fund, LLC the right at any time, to convert the outstanding balance (including accrued and unpaid interest) into shares of the Company’s common stock at 60% of the lowest trade price in the 25 trading days previous to the conversion, additional discounts may apply in the case that conversion shares are not deliverable or if the shares are ineligible. Effective April 18, 2016 the Company entered into a Convertible Promissory Note (“Adar Bay Note”) with Adar Bays, LLC pursuant to which the Company issued Adar Bays, LLC a convertible note in the amount of $50,000 with an interest rate of 8% and a 5% original issue discount totaling $2,500. The maturity date is April 18, 2017, upon which both principal, including the original issue discount, and interest are due. The Adar Bay Note provides Adar Bays, LLC the right at any time, to convert the outstanding balance (including accrued and unpaid interest) into shares of the Company’s common stock at 60% of the lowest trade price in the 20 trading days previous to the conversion, additional discounts may apply in the case that conversion shares are not deliverable or if the shares are ineligible. On May 11, 2016, Mark Warren tendered his resignation from the board of directors, as well as the position of chairman. The board accepted Mr. Warren’s resignation, effective on said date, and is actively seeking a replacement.

Summary of Significant Accoun20

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
CONCENTRATIONS [Policy Text Block]	CONCENTRATIONS During the three months ended March 31, 2016, 6% of sales were to a single related party customer. In addition, one other third party customer contributed to 64% of total revenue for three months ended March 31, 2016. For the three months ended March 31, 2015, 100% of sales were to a single related party customer. As of March 31, 2016, accounts receivable from one related party customer comprised 8% of total accounts receivable and accounts receivable from one third party customer comprised 50% of accounts receivable. As of December 31, 2015, accounts receivable from one third party customer comprised 81% of accounts receivable, while another third-party customer comprised 12% of accounts receivable.
INVENTORIES [Policy Text Block]	INVENTORIES Inventories are stated at the lower of cost, determined on a first-in, first-out basis (“FIFO”), or market, including direct material costs and direct and indirect manufacturing costs. Inventory consists of the following amounts as of March 31, 2016 and December 31, 2015. March 31, 2016 December 31, 2015 Raw Materials $ 270,652 $ 311,673 Work In Process - - Finished Goods 583,638 638,944 - Total Inventory $ 854,290 $ 950,617
FAIR VALUE ACCOUNTING [Policy Text Block]	FAIR VALUE ACCOUNTING As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC, fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. The three levels of the fair value hierarchy are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity). The following table sets forth by level with the fair value hierarchy the Company’s assets and liabilities measured at fair value as of March 31, 2016: Level 1 Level 2 Level 3 Total Assets None $ — $ — $ — $ — Liabilities Derivative liabilities $ — $ — $ 325,130 $ 325,130

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2016
Schedule of Inventory, Current [Table Text Block]	March 31, 2016 December 31, 2015 Raw Materials $ 270,652 $ 311,673 Work In Process - - Finished Goods 583,638 638,944 - Total Inventory $ 854,290 $ 950,617
Schedule of Fair Value, by Balance Sheet Grouping [Table Text Block]	Level 1 Level 2 Level 3 Total Assets None $ — $ — $ — $ — Liabilities Derivative liabilities $ — $ — $ 325,130 $ 325,130

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2016
Schedule of Property, Plant and Equipment [Table Text Block]	March 31, 2016 December 31, 2015 Manufacturing assets $ 168,015 $ 168,015 Vehicles - - Furniture and equipment 19,318 19,318 Improvements 21,472 21,472 208,805 208,805 Less accumulated depreciation (26,361 ) (21,419 ) Property and equipment, net $ 182,444 $ 187,386

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2016
Schedule of Debt [Table Text Block]	2016 $ 88,980 2017 171,000 2018 - 2019 - 2020 - Total current notes payable $ 259,980

CONVERTIBLE LOANS (Tables)

CONVERTIBLE LOANS (Tables)	3 Months Ended
	Mar. 31, 2016
Schedule of Convertible Debt [Table Text Block]	March 31, 2016 December 31, 2015 February 2016 Note $ 82,500 - March 2016 Note 110,000 - Total notes payable 192,500 - Less: Unamortized debt discounts (184,627 ) - Total convertible loans, net 7,873 - Less: current portion of convertible loans - - Long-term convertible loans, net $ 7,873 -

DERIVATIVE LIABILITY (Tables)

DERIVATIVE LIABILITY (Tables)	3 Months Ended
	Mar. 31, 2016
Schedule of Derivative Liabilities at Fair Value [Table Text Block]	December 31, 2015 fair value $ - Additions recognized as derivative loss at inception 292,899 Additions recognized as note discount at inception 145,375 Reclass from equity to derivative liability 6,175 Gain on change in fair value (119,319 ) March 31, 2016 fair value $ 325,130
Schedule of Derivative Instruments [Table Text Block]	Exercise prices See Notes 6 and 7 Expected dividends 0% Expected volatility 188%- 400% Expected term See Notes 6 and 7 Discount rate .59%- .85%

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2016
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	Year Ended Amount 2016 $ 18,200 2017 - 2018 - 2019 - 2020 - $ 18,200

SUMMARY OF SIGNIFICANT ACCOUN27

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016
Summary Of Significant Accounting Policies 1	6.00%
Summary Of Significant Accounting Policies 2	64.00%
Summary Of Significant Accounting Policies 3	100.00%
Summary Of Significant Accounting Policies 4	8.00%
Summary Of Significant Accounting Policies 5	50.00%
Summary Of Significant Accounting Policies 6	81.00%
Summary Of Significant Accounting Policies 7	12.00%

PROPERTY AND EQUIPMENT (Narrati

PROPERTY AND EQUIPMENT (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Property And Equipment 1	$ 4,942
Property And Equipment 2	$ 4,847

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)mo
Notes Payable 1	$ 13,875
Notes Payable 2	8.00%
Notes Payable 3	$ 1,439
Notes Payable 4 | mo	10
Notes Payable 5	$ 6,721
Notes Payable 6	0.00%
Notes Payable 7	$ 1,703
Notes Payable 8	663
Notes Payable 9	0
Notes Payable 10	6,791
Notes Payable 11	$ 78,593
Notes Payable 12	4.75%
Notes Payable 13	$ 19,843
Notes Payable 14	78,593
Notes Payable 15	88,980
Notes Payable 16	$ 88,980
Notes Payable 17	4.75%
Notes Payable 18	$ 88,980
Notes Payable 19	88,980
Notes Payable 20	100,000
Notes Payable 21	100,000
Notes Payable 22	200,000
Notes Payable 23	70,000
Notes Payable 24	1,000
Notes Payable 25	$ 171,000
Notes Payable 26	4.75%
Notes Payable 27	$ 200,000
Notes Payable 28	9,554
Notes Payable 29	11,499
Notes Payable 30	171,000
Notes Payable 31	$ 100,000

CONVERTIBLE LOANS (Narrative) (

CONVERTIBLE LOANS (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)d
Convertible Loans 1	$ 275,000
Convertible Loans 2	25,000
Convertible Loans 3	75,000
Convertible Loans 4	7,500
Convertible Loans 5	$ 5,625
Convertible Loans 6	6.00%
Convertible Loans 7	$ 16,500
Convertible Loans 8	70.00%
Convertible Loans 9 | d	25
Convertible Loans 10	$ 52,875
Convertible Loans 11	3,503
Convertible Loans 12	3,503
Convertible Loans 13	500,000
Convertible Loans 14	50,000
Convertible Loans 15	100,000
Convertible Loans 16	10,000
Convertible Loans 17	$ 7,500
Convertible Loans 18 | d	90
Convertible Loans 19	12.00%
Convertible Loans 20	60.00%
Convertible Loans 21 | d	25
Convertible Loans 22	$ 92,500
Convertible Loans 23	4,370
Convertible Loans 24	$ 4,370

CONVERTIBLE LOANS RELATED PAR31

CONVERTIBLE LOANS RELATED PARTY (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)$ / shares
Convertible Loans Related Party 1	$ 250,000
Convertible Loans Related Party 2 | $ / shares	$ 0.50
Convertible Loans Related Party 3	$ 125,000
Convertible Loans Related Party 4	125,000
Convertible Loans Related Party 5	0
Convertible Loans Related Party 6	30,822
Convertible Loans Related Party 7	125,000
Convertible Loans Related Party 8	125,000
Convertible Loans Related Party 9	$ 6,175

DERIVATIVE LIABILITY (Narrative

DERIVATIVE LIABILITY (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Derivative Liability 1	$ 173,580

SHAREHOLDERS EQUITY (Narrative)

SHAREHOLDERS EQUITY (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)shares
Shareholders Equity 1 | shares	500,000,000
Shareholders Equity 2 | $	$ 0.001
Shareholders Equity 3 | shares	86,126,100
Shareholders Equity 4 | shares	1,000,000
Shareholders Equity 5	250,000
Shareholders Equity 6 | shares	250,000
Shareholders Equity 7 | $	$ 119,325
Shareholders Equity 8 | $	21,425
Shareholders Equity 9 | $	$ 22,027

OPTIONS (Narrative) (Details)

OPTIONS (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)yr$ / sharesshares
Options 1 | shares	2,050,000
Options 2 | shares	100,000
Options 3 | $ / shares	$ 0.25
Options 4 | shares	750,000
Options 5 | $ / shares	$ 0.25
Options 6 | shares	1,000,000
Options 7 | $ / shares	$ 0.20
Options 8 | shares	200,000
Options 9 | $ / shares	$ 0.20
Options 10	2
Options 11 | yr	5
Options 12	$ 430,839
Options 13	218.00%
Options 14	396.00%
Options 15	27.00%
Options 16	1.74%
Options 17	1
Options 18 | yr	5
Options 19	$ 295,553
Options 20	24,703
Options 21	26,745
Options 22	$ 93,407
Options 23 | shares	1,800,000
Options 24	1,200,000
Options 25	$ 0.20
Options 26	$ 0.25
Options 27 | yr	2.37
Options 28	$ 0

COMMITMENTS AND CONTINGENCIES35

COMMITMENTS AND CONTINGENCIES (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)mo$ / yr$ / mo
Commitments And Contingencies 1 | $ / yr	10,200
Commitments And Contingencies 2 | mo	24
Commitments And Contingencies 3 | $ / mo	850
Commitments And Contingencies 4 | $ / mo	2,600
Commitments And Contingencies 5 | mo	24
Commitments And Contingencies 6 | $	$ 99
Commitments And Contingencies 7 | $ / yr	1,188

RELATED PARTY TRANSACTIONS (Nar

RELATED PARTY TRANSACTIONS (Narrative) (Details) - 3 months ended Mar. 31, 2016	USD ($)shares	CADshares
Related Party Transactions 1	$ 250,000
Related Party Transactions 2	7.00%	7.00%
Related Party Transactions 3	$ 0.50
Related Party Transactions 4 | shares	500,000	500,000
Related Party Transactions 5	$ 136,699
Related Party Transactions 6	11,699
Related Party Transactions 7	6,600
Related Party Transactions 8	0
Related Party Transactions 9	6,600
Related Party Transactions 10	17,382
Related Party Transactions 11	9,017
Related Party Transactions 12	31,009
Related Party Transactions 13 | CAD		CAD 16,152
Related Party Transactions 14	960
Related Party Transactions 15	38,847
Related Party Transactions 16	$ 3,407

SUBSEQUENT EVENTS (Narrative) (

SUBSEQUENT EVENTS (Narrative) (Details)	3 Months Ended
	Mar. 31, 2016USD ($)d
Subsequent Events 1	$ 75,000
Subsequent Events 2	10.00%
Subsequent Events 3	60.00%
Subsequent Events 4 | d	25
Subsequent Events 5	$ 50,000
Subsequent Events 6	8.00%
Subsequent Events 7	5.00%
Subsequent Events 8	$ 2,500
Subsequent Events 9	60.00%
Subsequent Events 10 | d	20

Schedule of Inventory, Current

Schedule of Inventory, Current (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 1	$ 270,652
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 2	311,673
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 3	0
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 4	0
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 5	583,638
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 6	638,944
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 7	0
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 8	854,290
Summary Of Significant Accounting Policies Schedule Of Inventory, Current 9	$ 950,617

Schedule of Fair Value, by Bala

Schedule of Fair Value, by Balance Sheet Grouping (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 1	$ 0
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 2	0
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 3	0
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 4	0
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 5	0
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 6	0
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 7	325,130
Summary Of Significant Accounting Policies Schedule Of Fair Value, By Balance Sheet Grouping 8	$ 325,130

Schedule of Property, Plant and

Schedule of Property, Plant and Equipment (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Property And Equipment Schedule Of Property, Plant And Equipment 1	$ 168,015
Property And Equipment Schedule Of Property, Plant And Equipment 2	168,015
Property And Equipment Schedule Of Property, Plant And Equipment 3	0
Property And Equipment Schedule Of Property, Plant And Equipment 4	0
Property And Equipment Schedule Of Property, Plant And Equipment 5	19,318
Property And Equipment Schedule Of Property, Plant And Equipment 6	19,318
Property And Equipment Schedule Of Property, Plant And Equipment 7	21,472
Property And Equipment Schedule Of Property, Plant And Equipment 8	21,472
Property And Equipment Schedule Of Property, Plant And Equipment 9	208,805
Property And Equipment Schedule Of Property, Plant And Equipment 10	208,805
Property And Equipment Schedule Of Property, Plant And Equipment 11	(26,361)
Property And Equipment Schedule Of Property, Plant And Equipment 12	(21,419)
Property And Equipment Schedule Of Property, Plant And Equipment 13	182,444
Property And Equipment Schedule Of Property, Plant And Equipment 14	$ 187,386

Schedule of Debt (Details)

Schedule of Debt (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Notes Payable Schedule Of Debt 1	$ 88,980
Notes Payable Schedule Of Debt 2	171,000
Notes Payable Schedule Of Debt 3	0
Notes Payable Schedule Of Debt 4	0
Notes Payable Schedule Of Debt 5	0
Notes Payable Schedule Of Debt 6	$ 259,980

Schedule of Convertible Debt (D

Schedule of Convertible Debt (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Convertible Loans Schedule Of Convertible Debt 1	$ 82,500
Convertible Loans Schedule Of Convertible Debt 2	0
Convertible Loans Schedule Of Convertible Debt 3	110,000
Convertible Loans Schedule Of Convertible Debt 4	0
Convertible Loans Schedule Of Convertible Debt 5	192,500
Convertible Loans Schedule Of Convertible Debt 6	0
Convertible Loans Schedule Of Convertible Debt 7	(184,627)
Convertible Loans Schedule Of Convertible Debt 8	0
Convertible Loans Schedule Of Convertible Debt 9	7,873
Convertible Loans Schedule Of Convertible Debt 10	0
Convertible Loans Schedule Of Convertible Debt 11	0
Convertible Loans Schedule Of Convertible Debt 12	0
Convertible Loans Schedule Of Convertible Debt 13	7,873
Convertible Loans Schedule Of Convertible Debt 14	$ 0

Schedule of Derivative Liabilit

Schedule of Derivative Liabilities at Fair Value (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Derivative Liability Schedule Of Derivative Liabilities At Fair Value 1	$ 0
Derivative Liability Schedule Of Derivative Liabilities At Fair Value 2	292,899
Derivative Liability Schedule Of Derivative Liabilities At Fair Value 3	145,375
Derivative Liability Schedule Of Derivative Liabilities At Fair Value 4	6,175
Derivative Liability Schedule Of Derivative Liabilities At Fair Value 5	(119,319)
Derivative Liability Schedule Of Derivative Liabilities At Fair Value 6	$ 325,130

Schedule of Derivative Instrume

Schedule of Derivative Instruments (Details)	3 Months Ended
	Mar. 31, 2016
Derivative Liability Schedule Of Derivative Instruments 1	0.00%
Derivative Liability Schedule Of Derivative Instruments 2	188.00%
Derivative Liability Schedule Of Derivative Instruments 3	400.00%
Derivative Liability Schedule Of Derivative Instruments 4	0.59%
Derivative Liability Schedule Of Derivative Instruments 5	0.85%

Schedule of Future Minimum Rent

Schedule of Future Minimum Rental Payments for Operating Leases (Details)	3 Months Ended
	Mar. 31, 2016USD ($)
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 1	$ 18,200
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 2	0
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 3	0
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 4	0
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 5	0
Commitments And Contingencies Schedule Of Future Minimum Rental Payments For Operating Leases 6	$ 18,200