Nodechain (NODC) 10-Q 15 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	6 Months Ended
	Jun. 30, 2017	Aug. 14, 2017
Document And Entity Information
Entity Registrant Name	Vapetek Inc.
Entity Central Index Key	1,580,485
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
Is Entity a Well-Known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 11,740,000
Entity Common Stock, Shares Outstanding		79,940,000

Balance Sheets (Unaudited for J

Balance Sheets (Unaudited for June 30, 2017) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash	$ 1,053	$ 2,848
Accounts receivable	447
Inventory	36,564	48,121
Total current assets	38,064	50,969
Computer, net		92
Total assets	38,064	51,061
Current liabilities:
Accounts payable and accrued liabilities	10,720	3,884
Due to related parties	20,000	29,500
Accrued rent – related party	11,000	6,600
Total current liabilities	41,720	39,984
Total liabilities	41,720	39,984
Stockholders' equity (deficit):
Preferred stock, ($.0001 par value, 5,000,000 shares authorized; none issued and outstanding)
Common stock, $0.0001 par value, 100,000,000 shares authorized; 79,480,000 and 77,520,000 shares issued and outstanding, respectively	7,948	7,752
Additional paid-in capital	643,758	643,758
Common stock payable	36
Accumulated deficit	(655,398)	(640,433)
Total stockholders' equity (deficit)	(3,656)	11,077
Total liabilities and stockholders' deficit	$ 38,064	$ 51,061

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Preferred stock, par value	$ .0001	$ .0001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ .0001	$ .0001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	79,480,000	77,520,000
Common stock, shares outstanding	79,480,000	77,520,000

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Sales	$ 7,252	$ 37,065	$ 25,081	$ 77,546
Sales - related party	11,953	565	35,142	9,171
Total sales	19,205	37,630	60,223	86,717
Cost of sales	3,175	22,071	11,074	38,915
Cost of sales, related party	3,379	62	23,335	869
Total cost of sales	6,554	22,133	34,409	39,784
Gross Profit	12,651	15,497	25,814	46,933
Operating expenses:
Professional fees	5,030	15,081	9,126	25,581
Rent expense, related party	6,600	6,600	13,200	13,200
General and administrative	1,477	10,138	18,453	19,826
Total operating expenses	13,107	31,819	40,779	58,607
Loss from operations	(456)	(16,322)	(14,965)	(311,674)
Other expense:
Loss on investment		(28,756)		(28,756)
Total other expense		(28,756)		(28,756)
Net loss	$ (456)	$ (45,078)	$ (14,965)	$ (40,430)
Basic loss per common share	$ 0	$ 0	$ 0	$ 0
Basic weighted average common shares outstanding	77,866,522	55,911,209	77,696,133	54,787,857

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net Income (Loss)	$ (14,965)	$ (40,430)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation	92	183
Loss on trading securities		28,756
Stock issued for services		6,250
Stock-based compensation - related party		183
Changes in operating assets and liabilities:
Accounts receivable	(447)
Inventory	11,557	(3,447)
Accounts payable and accrued liabilities	6,836	(23,797)
Accrued rent – related party	4,400
Net cash provided by (used in) operating activities	7,473	(32,485)
Cash Flows from Investing Activities
Investment		(35,000)
Net cash used in investing activities		(35,000)
Cash Flows from Financing activities:
Loans from related party
Repayments of related party loans	(9,500)	(5,000)
Proceeds from sale of common stock	232	73,000
Net cash provided by financing activities	(9,268)	68,000
Net change in cash	(1,795)	515
Cash, beginning of period	2,848	5,967
Cash, end of period	1,053	6,482
Supplemental Disclosures:
Cash paid for interest
Cash paid for taxes

Note 1 - Organization and Descr

Note 1 - Organization and Description of Business	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS VAPETEK Inc., f/k/a, ALPINE 2 Inc. (the “Company”), was incorporated under the laws of the State of Delaware on June 18, 2013. VAPETEK Inc. designs, markets, and distributes electronic cigarettes, vaporizers, e-liquids, and accessories. The Company’s products are designed to look like traditional cigarettes, are battery-powered products that enable users to inhale nicotine vapor without smoke, tar, ash, or carbon monoxide. On March 6, 2014, the Board of Directors and majority stockholder of the Company approved an amendment to the Company’s Certificate of Incorporation to change the name of the Company from ALPINE 2 Inc. to On that date, the Company filed a Certificate of Amendment with the State of Delaware. On April 1, 2014, the Company entered into a product distribution agreement with West Coast Vape Supply Inc. to supply West Coast Vape Supply Inc. is a related party and owned 100% by the management of Vapetek Inc. On September 23, 2014, the Company filed its Form 8-K (“Super 8-K”) outlining its discussion on its asset acquisition license with PennyGrab Inc., its entry into a product distribution agreement with West Coast Vape Supply Inc. to supply products its corporate website and sales from its line of products that it now offers. As a fully-operating entity, the Super 8-K disclosed that it had exited its shell company status pursuant to Item 5.06, Change in Shell Company Status. On August 11, 2014, the Company entered into a Licensing Agreement (the “Agreement”) with PennyGrab Inc. (“PennyGrab”). PennyGrab, a company owned 100% by our Chairman, Alham Benyameen, is the owner of technology, including software code, relating a website designed for wholesale, retail, and online auction compatible products a PHP website script that is 100% customizable and is SEO friendly that improves site search engines rankings. Pursuant to the Agreement, PennyGrab granted to the Company an exclusive, transferable (including sublicensable) worldwide perpetual license of the Licensed Technology, to make, use, lease, and sell products incorporating the Licensed Technology. The Company is required to pay to PennyGrab royalty payments equal to $100 (One Hundred Dollars) per year. The term of the Agreement is ongoing and effective as of August 11, 2014.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and footnotes for the year ended December 31, 2016 included on the Company’s Form 10-K filed on April 12, 2017. The results of the six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year ending December 31, 2017. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. Revenue Recognition Revenue is only recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the price to the buyer is fixed or determinable, and (4) collectability is reasonably assured. On occasion the Company may receive payment for a sale in advance of shipping the product. When this occurs the funds received are considered to not yet be earned and are reported as a liability on the financial statements as deferred revenue. Returns, Repairs and Exchange Policy It is the policy of the Company to issue no refunds once an order has been shipped unless due to product defects or Company error. The default warranty for all products is 14 days unless otherwise specified. Eligibility for refunds, repairs or exchanges are limited to products determined to have manufacturing defects or premature failure. Products that are damaged through misuse, negligence, and abuse or modified or repaired by anyone other than Vapetek, Inc. are not eligible for exchange. Shipping fees are non-refundable. The Company records shipping costs in accordance with EITF 00-10 Accounting for Shipping and Handling Fees and Costs. Accordingly, the shipping costs is shown in the financial statements to be included with general and administrative expense. If fulfillment errors occur, requests to correct mistakes that are made by the Company resulting in a customer’s receipt of incorrect or missing items in the order will be accepted for 14 days after the receipt of the order. Requests for missing or incorrect items will not be accepted after 14 days from the date the order has been received. Recently issued accounting pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Note 3 - Going Concern

Note 3 - Going Concern	6 Months Ended
	Jun. 30, 2017
Going Concern [Abstract]
GOING CONCERN	NOTE 3. GOING CONCERN The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred losses since inception and has an accumulated a deficit of $655,398 as of June 30, 2017. The Company requires capital for its contemplated operational and marketing activities. The Company’s ability to raise additional capital through the future issuances of common stock is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. The ability to successfully resolve these factors raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.

Note 4 - Related Party Transact

Note 4 - Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 4. RELATED PARTY TRANSACTIONS On July 2, 2014, the Company executed another Consolidated Loan Agreement for $4,500 to West Coast Vape Supply Inc., The note is unsecured, non-interest bearing, payable on demand and is due no later than July 2, 2019. The note also contains a conversion feature that allows West Coast Vape Supply, Inc. to convert into shares of restricted common stock at any time after the first year’s anniversary of the date of the Loan Agreement, at the price based upon either: a) the price of its most recent private placement offering, closest to the time of conversion, b) if publicly -traded, then the bid price of its common stock on the closing day of conversion. The loan agreement was amended on April 1, 2015 to eliminate the conversion clause. All other terms remained the same. This loan was repaid in full on June 2, 2017. On March 10, 2015, the Company executed another Consolidated Loan Agreement for $20,000 to West Coast Vape Supply Inc., The note is unsecured, non-interest bearing, payable on demand and is due no later than March 10, 2020. The note also contains a conversion feature that allows West Coast Vape Supply, Inc. to convert into shares of restricted common stock at any time after the first year’s anniversary of the date of the Loan Agreement, at the price based upon either: a) the price of its most recent private placement offering, closest to the time of conversion, b) if publicly -traded, then the bid price of its common stock on the closing day of conversion at. This loan agreement has been amended on April 1, 2015 to eliminate the conversion clause. All other terms remain the same. On August 1, 2016, $5,000 was repaid on the loan. As of June 30, 2017, $15,000 is still outstanding. On April 17, 2015, West Coast Vape Supply loaned the Company $5,000 for general operating expenses. The loan is unsecured, non-interest bearing, payable on demand, and due no later than April 17, 2020. This loan was repaid in full in May 2017. On June 1, 2015, the Company entered into a Lease Agreement (“Lease”) with West Coast Vape Supply, Inc. (“West Coast”) a company owned 100% by the Company’s management. The term of the lease is one year commencing June 1, 2015 and ending March 31, 2017. The Company shall pay West Coast rent of $26,400 per year in equal monthly installments of $2,200 payable in advance on the 1 st On July 17, 2015, West Coast Vape Supply loaned the Company $5,000 for general operating expenses. The loan is unsecured, non-interest bearing, payable on demand, and due no later than April 17, 2020. As of June 30, 2017, this loan is still outstanding. The Company recognized $35,142 and $9,171 in revenue from West Coast Vape Supply, a related party, for the six months ended June 30, 2017 and 2016, respectively. This revenue consisted of approximately 58.4% and 10.6%, respectively of the Company’s total sales. Sales made to West Coast Vape Supply are not recognized unless they are then sold on to a third party in an arm’s length transaction.

Note 5 - Common Stock

Note 5 - Common Stock	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
COMMON STOCK	NOTE 5. COMMON STOCK During the six months ended June 30, 2017 the Company sold 2,320,000 shares of common stock at par value of $0.0001 for total cash proceeds of $232. As of June 30, 2017, 360,000 shares had not yet been issued by the transfer agent so were credited to common stock payable. On June 19, 2017, the Company executed a consulting agreement with CorporateAds.com in connection with the 360,000 shares that they purchased. The agreement is for marketing and other activities to promote the Company. The initial term is for fifteen days but can be automatically extended for an additional 165 days, and then for one additional year. On June 17, 2017, the Company executed a consulting agreement with I-Business Management LLC in connection with the 360,000 shares that they purchased. The agreement is for investor relation services for a period of six months.

Note 6 - Commitments and Contin

Note 6 - Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 6. COMMITMENTS AND CONTINGENCIES On April 1, 2017, the Company entered into a Lease Agreement (“Lease”) with West Coast Vape Supply, Inc. (“West Coast”) a company owned 100% by the Company’s management. The term of the lease begins April 1, 2017 and ends March 31, 2019. The Company shall pay West Coast rent of $12,000 per year in equal monthly installments of $1,000 payable in advance on the 1 st Years ending December 31, 2017: $15,600 2018: $12,000 2019: $3,000 Total: $30,600

Note 7 - Subsequent Events

Note 7 - Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 7. SUBSEQUENT EVENTS Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855, from the balance sheet date through the date the financial statements were issued, and has determined that no material subsequent events exist other than the following. On July 10, 2017, the 360,000 shares credited to common stock payable as of June 30, 2017 were issued by the transfer agent. On July 14, 2017, the Company sold 100,000 shares of common stock for cash proceeds of $10.

Summary of Significant Accounti

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The Company’s unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These unaudited condensed financial statements should be read in conjunction with the audited financial statements and footnotes for the year ended December 31, 2016 included on the Company’s Form 10-K filed on April 12, 2017. The results of the six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the full year ending December 31, 2017.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and judgments that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. These estimates and judgments are based on historical information, information that is currently available to the Company and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.
Revenue recognition	Revenue Recognition Revenue is only recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) delivery has occurred or services have been rendered, (3) the price to the buyer is fixed or determinable, and (4) collectability is reasonably assured.
Returns, repairs and exchange policy	Returns, Repairs and Exchange Policy It is the policy of the Company to issue no refunds once an order has been shipped unless due to product defects or Company error. The default warranty for all products is 14 days unless otherwise specified. Eligibility for refunds, repairs or exchanges are limited to products determined to have manufacturing defects or premature failure. Products that are damaged through misuse, negligence, and abuse or modified or repaired by anyone other than Vapetek, Inc. are not eligible for exchange. Shipping fees are non-refundable. The Company records shipping costs in accordance with EITF 00-10 Accounting for Shipping and Handling Fees and Costs. Accordingly, the shipping costs is shown in the financial statements to be included with general and administrative expense. If fulfillment errors occur, requests to correct mistakes that are made by the Company resulting in a customer’s receipt of incorrect or missing items in the order will be accepted for 14 days after the receipt of the order. Requests for missing or incorrect items will not be accepted after 14 days from the date the order has been received.
Recently issued accounting pronouncements	Recently issued accounting pronouncements The Company has implemented all new accounting pronouncements that are in effect. These pronouncements did not have any material impact on the financial statements unless otherwise disclosed, and the Company does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Details Textual) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Summary Of Significant Accounting Policies Textual [Abstract]
Inventory	$ 36,564	$ 48,121

Going Concern (Details)

Going Concern (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Going concern (Textual)
Accumulated deficit	$ (655,398)	$ (640,433)