Kisses From Italy (KITL) 10-Q 9 Nov 18 2018 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 09, 2018
Document And Entity Information
Entity Registrant Name	KISSES FROM ITALY, INC.
Entity Central Index Key	1,608,092
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	No
Is Entity Emerging Growth Company?	true
Elected Not To Use the Extended Transition Period	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Common Stock, Shares Outstanding		81,780,170
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 20,935	$ 51,955
Other receivables	2,704	0
Total current assets	23,639	51,955
Property and equipment, net	100,287	130,102
Other Assets	1,093	1,093
Total assets	125,018	183,150
Current liabilities:
Accounts payable	37,494	13,482
Accrued liabilities	122,302	123,342
Loans payable	0	45,199
Total current liabilities	159,796	182,023
Total liabilities	159,796	182,023
Convertible Notes	208,150	0
Stockholders' Equity:
Preferred stock, $0.001 par value. 25,000,000 shares authorized; zero shares issued and outstanding	0	0
Common stock, $0.001 par value, 200,000,000 shares authorized; 81,780,170 and 81,780,170 shares issued and outstanding as of September 30, 2018 and December 31 2017, respectively	81,780	81,780
Additional paid-in capital	1,615,062	1,545,796
Retained earnings deficit	(1,972,843)	(1,679,183)
Total Kisses From Italy Stockholders' Equity	(276,001)	(51,607)
Non-controlling interest	33,073	52,734
Total stockholders' equity	(242,928)	1,127
Total liabilities and equity	$ 125,018	$ 183,150

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Preferred stock, par value	$ .001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ .001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	81,780,170	81,780,170
Common stock, shares outstanding	81,780,170	81,780,170

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Income Statement [Abstract]
Sales	$ 114,993	$ 135,836	$ 352,103	$ 673,868
Cost of goods sold	65,355	71,625	168,688	280,456
Gross margin	49,638	64,211	183,415	393,412
Operating expenses:
Depreciation and amortization	9,939	9,279	29,815	29,083
Executive compensation	0	6,310	16,953	26,717
Stock based compensation	0	75,000	0	75,000
Payroll and other expenses	59,489	50,552	140,557	214,864
Rent	12,630	10,047	56,214	60,479
Consulting and professional fees	64,825	5,024	106,492	24,619
General and administrative	40,951	35,818	99,644	83,914
Total operating expenses	187,833	192,030	449,673	514,676
Income (loss) from operations	(138,195)	(127,819)	(266,258)	(121,264)
Other income (expense)
Other income	33,732	0	33,732	0
Interest income (expense), net	(23,297)	(4,751)	(80,794)	(11,774)
Total other income (expense)	10,435	(4,751)	(47,062)	(11,774)
Income (loss) before income taxes	(127,760)	(132,570)	(313,320)	(133,038)
Provision for income taxes (benefit)	0	0	0	0
Net loss	(127,760)	(132,570)	(313,320)	(133,038)
Less: net gain(loss) attributable to non-controlling interests	(10,151)	(3,023)	(19,661)	(1,831)
Net loss attributable to Kisses From Italy, Inc.	$ (117,609)	$ (129,547)	$ (293,660)	$ (131,207)
Basic and diluted earnings (loss) per common share	$ 0	$ 0	$ 0	$ 0
Weighted-average number of common shares outstanding: Basic and diluted	81,780,170	75,815,255	81,780,170	75,768,522

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities of continuing operations:
Net income (loss)	$ (293,660)	$ (131,207)
Net income loss attributable to non-controlling interest	(19,661)	(1,831)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization	29,815	29,083
Amortization of debt discount	69,266	0
Stock-based compensation	0	75,000
Changes in operating assets and liabilities:
Account receivable	(2,704)	0
Accounts payable	24,012	0
Accrued liabilities	(1,039)	4,999
Net cash provided by (used in) operating activities	(193,971)	(23,956)
Cash flows from investing activities:
Purchase of fixed assets	0	0
Net cash provided by (used in) investing activities	0	0
Cash flows from financing activities:
Payments against loans	(45,199)	(5,219)
Convertible notes	208,150	0
Proceeds from private placements	0	0
Net cash provided by (used in) financing activities	162,951	(5,219)
Net increase (decrease) in cash and cash equivalents	(31,020)	(29,174)
Cash and cash equivalents at beginning of period	51,955	32,692
Cash and cash equivalents at end of period	20,935	3,518
Supplemental disclosure of cash flow information:
Cash paid for interest	0	11,774
Cash paid for income taxes	$ 0	$ 0

1. Organization and Description

1. Organization and Description of Business	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Organization and Description of Business	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Kisses From Italy Inc. (the “Company””) was incorporated in Florida on March 7, 2013. The Company’s main focus is to develop a fast, casual food dining chain restaurant business of corporate owned restaurants by expanding it through a nationwide/international franchise and territory sales program. The Company commenced operations in May 2015 by opening its first location in Ft. Lauderdale, Florida. Three additional restaurants, which were located in various Wyndham Hotel properties in the Pompano Beach, Florida area, were then opened within the following 10 months. All locations which were in leased facilities were fully operational by April 2016. In December 2017, the Company vacated one of its restaurants. The Company’s accounting year end is December 31st.

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2018
Summary of Significant Accounting Policies	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Management’s Representation of Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements at December 31, 2017 and 2016 included in the Company’s Prospectus filed on August 1, 2018. Basis of Presentation and Principles of Consolidation The consolidated financial statements of the Company have been prepared in accordance with GAAP. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses or recognized when incurred. The consolidated financials include the accounts of the Company and its wholly owned subsidiaries; Kisses from Italy 9 th All intercompany accounts and transactions are eliminated in consolidation. Going Concern The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these financial statements. On a consolidated basis, the Company has incurred significant operating losses since inception. Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. Historically, the Company has raised capital through private placements, as an interim measure to finance working capital needs and may continue to raise additional capital through sale of common stock or other securities and obtaining some short-term loans. The Company will be required to continue to so until its consolidated operations become profitable. Also, the Company has, in the past, paid for consulting services with its common stock to maximize working capital, and intends to continue this practice where feasible. Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of 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. The most significant estimates relate to revenue recognition, valuation of accounts receivable and inventories, purchase price allocation of acquired businesses, impairment of long lived assets and goodwill, valuation of financial instruments, income taxes, and contingencies. The Company bases its estimates on historical experience, known or expected trends and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates. Revenue Recognition Sales, as presented in our consolidated statements of earnings, represents food and beverage product sold and is presented net of discounts, coupons, employee meals and complimentary meals. Revenue from restaurant sales is recognized when food and beverage products are sold. On January 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. As of and for the nine months ended September 30, 2018, the consolidated financial statements were not materially impacted as a result of the application of Topic 606 compared to Topic 605. Non-controlling interest Non-controlling interest represents third party ownership in the net assets of one of our consolidated subsidiaries. For financial reporting purposes, the assets and liabilities of our majority owned subsidiary consolidated with those of our own wholly owned subsidiaries, with any third-party investor’s interest shown as non-controlling interest. Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At September 30, 2018 and December 31, 2017, the Company cash equivalents totaled $20,935 and $51,955 respectively. Property and equipment Property and equipment are stated at cost or fair value if acquired as part of a business combination. Depreciation is computed by the straight-line method and is charged to operations over the estimated useful lives of the assets. Maintenance and repairs are charged to expense as incurred. The carrying amount and accumulated depreciation of assets sold or retired are removed from the accounts in the year of disposal and any resulting gain or loss is included in results of operations. The estimated useful lives of property and equipment are as follows: Computers, software and office equipment 1 – 5 years Machinery and equipment 3 – 5 years Leasehold improvements Lesser of lease term or estimated useful life Income taxes The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes” “Accounting for Uncertainty in Income Taxes” The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions on a quarterly basis to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability under audit. Stock-based Compensation The Company accounts for stock-based compensation using the fair value method following the guidance set forth in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service. Leases The Company follows the guidance in ASC 840 “ Leases Net Loss per Share Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share." Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations.
Computers, software and office equipment [Member]
Estimated useful life	1-5 years
Machinery and Equipment [Member]
Estimated useful life	3-5 years
Leasehold Improvements [Member]
Estimated useful life	Lesser of lease term or estimated useful life

3. Property and Equipment

3. Property and Equipment	9 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Property and Equipment	NOTE 3 – PROPERTY AND EQUIPMENT The following table sets forth the components of the Company’s property and equipment at September 30, 2018 and December 31, 2017: September 30, 2018 December 31, 2017 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Capital assets subject to depreciation: Furniture and equipment $ 52,868 (32,583 ) 20,285 $ 52,868 $ (24,733 ) $ 28,135 Leasehold improvements 175,716 (95,714 ) 80,002 175,716 (73,749 ) 101,967 Total fixed assets $ 228,584 (128,297 ) 100,287 $ 228,584 $ (98,482 ) $ 130,102 For the three and months ended September 30, 2018 the Company recorded depreciation and amortization of leasehold expenses of $9,939 and $29,815, respectively; compared to $9,279 and $29,083, respectively for the same three and nine month periods ended September 30, 2017.

4. Accrued and Other Liabilitie

4. Accrued and Other Liabilities	9 Months Ended
	Sep. 30, 2018
Payables and Accruals [Abstract]
Accrued and Other Liabilities	NOTE 4 -ACCRUED AND OTHER LIABILITIES The following table sets forth the components of the Company’s accrued liabilities at September 30, 2018 and December 31, 2017. September 30, December 31, Sales tax payable $ 15,379 $ 42,462 Accrued interest payable 4,641 – Payroll tax liabilities 102,283 80,880 Total accrued liabilities $ 122,302 $ 123,342 The Company is in arrears on its payroll tax payments as of September 30, 2018. Included in the “payroll tax liabilities” as of September 30, 2018 is approximately $22,000 in interest and penalties.

5. Loans Payable_Other Receivab

5. Loans Payable/Other Receivable	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Loans Payable/Other Receivable	NOTE 5 – LOANS PAYABLE/OTHER RECEIVABLE The Company has two asset-based lines of credit of $25,000, each with two separate lenders. The amount of credit available to be accessed is dependent on the amount of documented credit receipts received by the Company’s restaurants. The due dates on these credit advances are typically between 90 and 180 days. The interest rate on the facilities are approximately 38% and 31%, respectively, plus additional processing fees of approximately 5%. As of September 30, 2018, and December 31 2017, loan payable balances were $-0- and $45,119 respectively. The amount of loans outstanding was significantly reduced due to proceeds from less expensive (in terms of interest rate) convertible debt that was applied against loan balances. During the three month period ended September 30, 2018, the Company over paid one of the asset based loans creating a receivable balance of $2,704. This amount has been classified an “other receivable” on the Company’s balance sheet and was repaid to the Company in October 2018.

6. Convertible Notes

6. Convertible Notes	9 Months Ended
	Sep. 30, 2018
Debt Disclosure [Abstract]
Convertible Notes	NOTE 6 – CONVERTIBLE NOTES As of September 30, 2018, and December 31, 2017, the balance of convertible notes was $208,150 and $-0- respectively. In April 2018, the Company commenced a private offering of up to $250,000 in convertible debenture (the “Debentures”), to non-residents of the US. These notes accrue interest at the rate of 8% per annum and are convertible into shares of the Company’s Common Stock and are only convertible until such time as the Company’s Common Stock is approved for trading, of which there is no assurance, at a conversion rate of $0.0667 per share. Interest is payable annually, on or before February 15 of each year. The Debentures mature three years after the issuance date. As of the date hereof, an aggregate of $208,150 in Debentures have been issued. None have been converted. Since the Company’s shares were sold in private placement at a price of $0.10 per share, the difference in price is considered a beneficial conversion feature. Since the holders of the Notes have the right to convert immediately, the beneficial conversion feature of $69,314 has been immediately expensed and recorded as interest expense.

7. Stockholders Equity

7. Stockholders Equity	9 Months Ended
	Sep. 30, 2018
Equity [Abstract]
Stockholders Equity	NOTE 7 – STOCKHOLDERS EQUITY Common Stock At September 30, 2018 and December 31, 2017, there were 81,780,170 shares of Common Stock issued and outstanding, with a $0.001 par value. 25,000,000 shares of Preferred Stock, with a par value $0.01 per share, are authorized, none of which has been issued or is outstanding as of September 30, 2018 and December 31, 2017, respectively. In May 2018, the Company’s Board of Directors and Shareholders approved an amendment to the Company’s Articles of Incorporation, increasing the number of authorized Common Shares to 200,000,000, par value $0.01 per share. Common Stock Issued in Private Placements During the nine months ended September 30, 2018, the Company did not accept any subscription agreements to purchase its common stock. During the year ended December 31, 2017, the Company accepted subscription agreements from 9 investors and issued 1,350,000 shares of its common stock at a price of $0.10 per shares for gross proceeds totaling $135,000. Common Stock Issued in Exchange for Services During the nine months ended September 30, 2018, the Company did not issue any shares of its common stock for services. During the year ended December 31, 2017, the Company issued 4,685,000 shares of its common stock for services valued at $0.10 per share valued at $468,500. These shares were issued to an aggregate of 13 persons. The price of $0.10 represented the Company’s share price in its private placement throughout all of 2017.

8. Commitments and Contingencie

8. Commitments and Contingencies	9 Months Ended
	Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 8 – COMMITMENTS AND CONTINGENCIES As of September 30, 2018, and December 31, 2017, the Company had three operating store locations. The Company leases these spaces based upon the following schedules: · Kisses From Italy 9 th · Kisses From Italy-Palm Aire based in Pompano Beach, Florida leases approximately 2,300 square feet of space at a cost of $3,600 per month. The lease ends on May 1, 2019. The Company has a one-year automatic renewal provision for this lease but is not obligated to exercise this renewal provision. · Kisses From Italy -Sea Gardens based in Pompano Beach, Florida leases approximately 600 square feet of space at a cost of $546 per month. The lease ends on August 1, 2018. The Company has a one-year automatic renewal provision for this lease, but is not obligated to exercise this renewal provision. In addition to the above, Kisses from Royal Vista, which closed in August 2017, had been paying $1,800 per month in rent for approximately 950 square feet of space. The Company also rents professional and furnished space on a month to month basis in Miami, Florida at a cost of $223 per month, which has been designated the Company’s principal place of business.

9. Subsequent Events

9. Subsequent Events	9 Months Ended
	Sep. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	NOTE 9 – SUBSEQUENT EVENTS None.

2. Summary of Significant Acc_2

2. Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Management's Representation of Interim Financial Statements	Management’s Representation of Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared by the Company without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted as allowed by such rules and regulations, and management believes that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements include all of the adjustments, which in the opinion of management are necessary to a fair presentation of financial position and results of operations. All such adjustments are of a normal and recurring nature. Interim results are not necessarily indicative of results for a full year. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements at December 31, 2017 and 2016 included in the Company’s Prospectus filed on August 1, 2018.
Basis of Presentation and Principles of Consolidation	Basis of Presentation and Principles of Consolidation The consolidated financial statements of the Company have been prepared in accordance with GAAP. This basis of accounting involves the application of accrual accounting and consequently, revenues and gains are recognized when earned, and expenses and losses or recognized when incurred. The consolidated financials include the accounts of the Company and its wholly owned subsidiaries; Kisses from Italy 9 th All intercompany accounts and transactions are eliminated in consolidation.
Going Concern	Going Concern The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business for the twelve-month period following the date of these financial statements. On a consolidated basis, the Company has incurred significant operating losses since inception. Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. Historically, the Company has raised capital through private placements, as an interim measure to finance working capital needs and may continue to raise additional capital through sale of common stock or other securities and obtaining some short-term loans. The Company will be required to continue to so until its consolidated operations become profitable. Also, the Company has, in the past, paid for consulting services with its common stock to maximize working capital, and intends to continue this practice where feasible.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of 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. The most significant estimates relate to revenue recognition, valuation of accounts receivable and inventories, purchase price allocation of acquired businesses, impairment of long lived assets and goodwill, valuation of financial instruments, income taxes, and contingencies. The Company bases its estimates on historical experience, known or expected trends and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.
Revenue Recognition	Revenue Recognition Sales, as presented in our consolidated statements of earnings, represents food and beverage product sold and is presented net of discounts, coupons, employee meals and complimentary meals. Revenue from restaurant sales is recognized when food and beverage products are sold. On January 1, 2018, we adopted Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC 606”), using the modified retrospective method applied to those contracts which were not completed as of January 1, 2018. Results for reporting periods beginning after January 1, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under ASC 605. As of and for the nine months ended September 30, 2018, the consolidated financial statements were not materially impacted as a result of the application of Topic 606 compared to Topic 605.
Non-controlling interest	Non-controlling interest Non-controlling interest represents third party ownership in the net assets of one of our consolidated subsidiaries. For financial reporting purposes, the assets and liabilities of our majority owned subsidiary consolidated with those of our own wholly owned subsidiaries, with any third-party investor’s interest shown as non-controlling interest.
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. At September 30, 2018 and December 31, 2017, the Company cash equivalents totaled $20,935 and $51,955 respectively.
Property and equipment	Property and equipment Property and equipment are stated at cost or fair value if acquired as part of a business combination. Depreciation is computed by the straight-line method and is charged to operations over the estimated useful lives of the assets. Maintenance and repairs are charged to expense as incurred. The carrying amount and accumulated depreciation of assets sold or retired are removed from the accounts in the year of disposal and any resulting gain or loss is included in results of operations. The estimated useful lives of property and equipment are as follows: Computers, software and office equipment 1 – 5 years Machinery and equipment 3 – 5 years Leasehold improvements Lesser of lease term or estimated useful life
Income taxes	Income taxes The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes” “Accounting for Uncertainty in Income Taxes” The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions on a quarterly basis to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability under audit.
Stock-based Compensation	Stock-based Compensation The Company accounts for stock-based compensation using the fair value method following the guidance set forth in Section 718-10 of the FASB Accounting Standards Codification for disclosure about Stock-Based Compensation. This section requires a public entity to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost will be recognized over the period during which an employee is required to provide service in exchange for the award- the requisite service period (usually the vesting period). No compensation cost is recognized for equity instruments for which employees do not render the requisite service.
Leases	Leases The Company follows the guidance in ASC 840 “ Leases
Net Loss per Share	Net Loss per Share Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, "Earnings per Share." Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding.
Recent Accounting Pronouncements	Recent Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new pronouncements that have been issued that might have a material impact on its financial position or results of operations.

2. Summary of Significant Acc_3

2. Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2018
Accounting Policies [Abstract]
Estimated useful lives of property	Computers, software and office equipment 1 – 5 years Machinery and equipment 3 – 5 years Leasehold improvements Lesser of lease term or estimated useful life

3. Property and Equipment (Tabl

3. Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2018
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	September 30, 2018 December 31, 2017 Cost Accumulated Depreciation Net Book Value Cost Accumulated Depreciation Net Book Value Capital assets subject to depreciation: Furniture and equipment $ 52,868 (32,583 ) 20,285 $ 52,868 $ (24,733 ) $ 28,135 Leasehold improvements 175,716 (95,714 ) 80,002 175,716 (73,749 ) 101,967 Total fixed assets $ 228,584 (128,297 ) 100,287 $ 228,584 $ (98,482 ) $ 130,102

4. Accrued and Other Liabilit_2

4. Accrued and Other Liabilities (Tables)	9 Months Ended
	Sep. 30, 2018
Payables and Accruals [Abstract]
Schedule of accrued and other liabilities	September 30, December 31, Sales tax payable $ 15,379 $ 42,462 Accrued interest payable 4,641 – Payroll tax liabilities 102,283 80,880 Total accrued liabilities $ 122,302 $ 123,342

2. Summary of Significant Acc_4

2. Summary of Significant Accounting Policies (Details Narrative) - USD ($)	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Cash and cash equivalents	$ 20,935	$ 51,955	$ 3,518	$ 32,692

3. Property and Equipment (Deta

3. Property and Equipment (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Property and equipment, gross	$ 228,584	$ 228,584
Accumulated depreciation	(128,297)	(98,482)
Property and equipment, net	100,287	130,102
Furniture and equipment [Member]
Property and equipment, gross	52,868	52,868
Accumulated depreciation	(32,583)	(24,733)
Property and equipment, net	20,285	28,135
Leasehold Improvements [Member]
Property and equipment, gross	175,716	175,716
Accumulated depreciation	(95,714)	(73,749)
Property and equipment, net	$ 80,002	$ 101,967

3. Property and Equipment (De_2

3. Property and Equipment (Details Narrative) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 9,939	$ 9,279	$ 29,815	$ 29,083

4. Accrued and Other Liabilit_3

4. Accrued and Other Liabilities (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Payables and Accruals [Abstract]
Sales tax payable	$ 15,379	$ 42,462
Accrued interest payable	4,641	0
Payroll tax liabilities	102,283	80,880
Total accrued liabilities	$ 122,302	$ 123,342

4. Accrued and Other Liabilit_4

4. Accrued and Other Liabilities (Details Narrative) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Payroll tax liabilities	$ 102,283	$ 80,880
Interest and Penalties [Member]
Payroll tax liabilities	$ 22,000

5. Loans Payable_Other Receiv_2

5. Loans Payable/Other Receivable (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Line of credit balance	$ 0	$ 45,119
Other receivable (overpayment of credit line)	2,704	$ 0
Credit Line 1 [Member]
Credit line maximum amount	$ 25,000
Credit line interest rates	38.00%
Credit Line 2 [Member]
Credit line maximum amount	$ 25,000
Credit line interest rates	31.00%

6. Convertible Notes (Details N

6. Convertible Notes (Details Narrative) - USD ($)	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Convertible notes payable	$ 208,150	$ 0
Notes payable face value	$ 250,000
Debt interest rate	8.00%
Debt term	3 years
Beneficial conversion feature	$ 69,314

7. Stockholders Equity (Details

7. Stockholders Equity (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
13 persons [Member]
Stock issued for services, shares		4,685,000
Stock issued for services, value		$ 468,500
Subscription Agreements [Member]
Stock issued new, shares	0	1,350,000
Proceeds from sale of stock		$ 135,000

8. Commitments and Contingenc_2

8. Commitments and Contingencies (Details Narrative)	9 Months Ended
	Sep. 30, 2018USD ($)ft²
Fort Lauderdale, FL [Member]
Rental space in sq. ft. | ft²	990
Lease payment frequency	monthly
Lease periodic payment	$ 5,773
Palm Aire [Member]
Rental space in sq. ft. | ft²	2,300
Lease payment frequency	monthly
Lease periodic payment	$ 3,600
Sea Gardens [Member]
Rental space in sq. ft. | ft²	600
Lease payment frequency	monthly
Lease periodic payment	$ 546
Miami, FL [Member]
Lease payment frequency	monthly
Lease periodic payment	$ 223