InnerScope Hearing (INND) 10-Q 21 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 18, 2016
Document And Entity Information
Entity Registrant Name	Innerscope Advertising Agency, Inc.
Entity Central Index Key	1,609,139
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		60,906,000
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 261,486	$ 67,841
Accounts receivable, net	68,614
Deferred commissions - stockholder	226,334
Prepaid assets	45,707
Inventory	9,486
Notes and interest receivable, officer	21,541	21,311
Accounts receivable from related party	18,696	99,496
Advances to affiliate	441,000
Total current assets	1,092,865	188,648
Security Deposit		7,026
Total assets	1,092,865	195,674
Current Liabilities:
Accounts payable and accrued expenses	46,635	28,898
Commissions payable - stockholder	318,000
Officer salaries payable	58,333
Income tax payable	64,455
Deferred revenue	377,223
Total liabilities	864,646	28,898
Stockholders' Equity:
Common stock, $0.0001 par value; 225,000,000 shares authorized; 60,906,000 shares issued and outstanding	6,090	6,090
Preferred stock, $0.0001 par value; 25,000,000 shares authorized; no shares issued
Additional paid-in capital	104,110	104,110
Retained earnings	118,019	56,576
Total stockholders' equity	228,219	166,776
Total liabilities and stockholders' equity	$ 1,092,865	$ 195,674

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	225,000,000	225,000,000
Common stock, shares issued	60,906,000	60,906,000
Common stock, shares outstanding	60,906,000	60,906,000
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenues:
Revenues, related party	$ 294,775	$ 182,400	$ 917,020	$ 528,000
Revenues, other	395,043	37,197	395,043	116,668
Total revenues	689,818	219,597	1,312,063	644,668
Cost of sales	241,752	34,699	495,654	105,634
Gross profit	448,066	184,898	816,409	539,034
Operating Expenses:
Compensation and benefits	149,056	106,287	441,397	339,456
Professional fees	27,785	17,166	92,734	42,692
Rent, related party	4,500	13,500	28,578	40,500
Commissions, stockholder	91,666		91,666
Other general and administrative	20,582	5,259	28,490	11,814
Total operating expenses	293,589	142,212	682,865	434,462
Income from operations	154,477	42,686	133,544	104,572
Other (expense) income:
Interest income, officer	77	76	231	230
Interest expense	(2,264)		(10,785)
Total other expense (income), net	(2,187)	76	(10,554)	230
Income before income taxes	152,290	42,762	122,990	104,802
Income tax provision	61,547		61,547
Net income	$ 90,743	$ 42,762	$ 61,443	$ 104,802
Basic and diluted income per share	$ 0	$ 0	$ 0	$ 0
Weighted average number of common shares outstanding Basic and diluted	60,906,000	60,906,000	60,906,000	60,906,000

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Cash flows from operating activities:
Net income	$ 61,443	$ 104,802
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities
Security deposit used for rent payment	7,026
Changes in operating assets and liabilities:
Decrease (increase) in Interest receivable, related party	(231)	(231)
Decrease (increase) in Accounts receivable	(68,614)
Decrease (increase) in Inventory	(9,486)
Decrease (increase) in Deferred Commissions - stockholder	(226,334)
Decrease (increase) in Prepaid assets (including $226,334 deferred commissions - stockholder)	(45,707)
Decrease (increase) in Advances to affiliate	(441,000)
Decrease (increase) in Due from related party	80,800	(18,596)
Increase (decrease) in accounts payable and accrued expenses	82,192	(2,968)
Increase (decrease) in Commissions payable, stockholder	318,000
Increase (decrease) in Officer salaries payable	58,333
Increase (decrease) in Deferred revenue	377,223
Net cash provided by operating activities	193,645	83,008
Net increase in cash and cash equivalents	193,645	83,008
Cash and cash equivalents, Beginning of period	67,841	972
Cash and cash equivalents, End of period	261,486	83,980
Supplemental disclosure of cash flow information:
Cash paid for interest	10,785
Cash paid for income taxes	$ 24,758

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Statement of Cash Flows [Abstract]
Decrease (increase) in deferred commissions - stockholder included in $226,334	$ (226,334)

ORGANIZATION

ORGANIZATION	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	NOTE 1 - ORGANIZATION Business InnerScope Advertising Agency, Inc. (“Company”, “Innerscope” or “ISAA”) is a Nevada Corporation incorporated June 15, 2012, with its principal place of business in Roseville, California. ISAA was formed to provide advertising and marketing services to retail establishments in the hearing device industry. On June 20, 2012, ISAA entered into an Acquisition and Plan of Share Exchange with InnerScope Advertising Agency, LLC (“ILLC”), a commonly owned entity, whereby ISAA acquired 100% of ILLC. On November 1, 2013, ISAA entered into an Acquisition and Plan of Share Exchange with Intela-Hear, LLC (“Intela-Hear”), a commonly owned entity, whereby ISAA acquired 100% of the outstanding equity of Intela-Hear in exchange for 27,000,000 shares of the Company’s common stock. This resulted in Intela-Hear becoming a wholly-owned subsidiary of the Company. ISAA provides a comprehensive range of services (including consulting services), grouped into four fundamental disciplines: advertising/marketing, customer relationship management, public relations and specialty communications. The Company serves the retail hearing aid dispensing community through generating traffic and consumer interest for hearing aid dispensing practices. During the three and nine months ended September 30, 2016, approximately 43% and 70%, respectively, of the Company’s revenue was generated from a related party, compared to approximately 83% and 82% for the three and nine months ended September 30, 2015, respectively. The Company and the related party agreed to cancel the Marketing Agreement which generated these revenues as a result of the sale by the related party of substantially all of their assets. See note 5. On October 28, 2016, a majority of the Company’s shareholders, based on the Company’s Board of Directors (the “BOD”) recommendation, approved a forward split of the common stock whereby an additional two shares of common stock will be issued for every share of common stock outstanding (the “Forward Split”). The Company filed Amended and Restated Articles of Incorporation with the State of Nevada on October 31, 2016. All share amounts for all periods presented have been retroactively adjusted to reflect the Forward Split.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING PROUNCEMENTS	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING PROUNCEMENTS	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING PRONOUNCEMENTS Basis of Presentation and Principles of Consolidation The accompanying condensed consolidated financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments necessary to present the financial position, results of operations and cash flows for the stated periods have been made. Except as described below, these adjustments consist only of normal and recurring adjustments. Certain information and note disclosures normally included in the Company’s annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated unaudited financial statements should be read in conjunction with a reading of the Company’s consolidated financial statements and notes thereto included in Form S-1/A filed with the SEC on July 15, 2016. Interim results of operations for the three and nine months ended September 30, 2016 and 2015 are not necessarily indicative of future results for the full year. Certain amounts from the 2015 period have been reclassified to conform to the presentation used in the current period. The condensed consolidated financial statements of the Company include the consolidated accounts of Innerscope and its’ wholly owned subsidiaries ILLC and Intela-Hear, a California limited liability company. All intercompany accounts and transactions have been eliminated in consolidation. Emerging Growth Companies The Company qualifies as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, the Company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company has elected to take advantage of the benefits of this extended transition period. Use of Estimates 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 disclosures of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reported period. Significant estimates relied upon in preparing these financial statements include collectability of accounts receivable, accounts receivable from a related party and notes receivable from an officer, inventory allowances for slow moving or obsolete inventory and the allocation of our President’s compensation to the company. Actual results could differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original term of three months or less to be cash equivalents. These investments are carried at cost, which approximates fair value. Cash and cash equivalent balances may, at certain times, exceed federally insured limits. If the amount of a deposit at any time exceeds the federally insured amount at a bank, the uninsured portion of the deposit could be lost, in whole or in part, if the bank were to fail. As of September 30, 2016, we had approximately $49,402 in excess of the federally insured limit. Revenue Recognition The Company recognizes revenue in accordance with FASB ASC 605, Revenue Recognition. ASC 605 requires that four basic criteria are met (1) persuasive evidence of an arrangement exists, (2) delivery of products and services has occurred, (3) the fee is fixed or determinable and (4) collectability is reasonably assured. The Company recognizes revenue during the period in which the services are performed. For the three and nine months ended September 30, 2016, the Company recognized $246,325 into revenue related to the Marketing and Consulting Agreements. During the same periods the Company recognized zero revenue related to the Store Expansion agreement. Deferred Revenue The Company records deferred revenues from the Store Expansion and Consulting Agreements when cash has been received, but the related services have not been provided. Deferred revenue will be recognized when the services are provided and the terms of the agreements have been fulfilled. As of September 30, 2016, the Company has deferred revenue of $377,223 related to the Consulting and Expansion agreements. Advertising and Marketing Expenses The Company expenses advertising and marketing costs as incurred. For the three and nine months ended September 30, 2016 and 2015, the Company did not incur any advertising and marketing expenses. Fair Value of Financial Instruments The Company's financial instruments consist primarily of cash, amount due from related party (MFHC), notes and interest receivable officer and accounts payable. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities. The estimated fair value is not necessarily indicative of the amounts the Company would realize in a current market exchange or from future earnings or cash flows. Income Taxes The Company accounts for income taxes in accordance with ASC 740-10, Income Taxes. Deferred tax assets and liabilities are recognized to reflect the estimated future tax effects, calculated at the tax rate expected to be in effect at the time of realization. A valuation allowance related to a deferred tax asset is recorded when it is more likely than not that some portion of the deferred tax asset will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment. ASC 740-10 prescribes a recognition threshold that a tax position is required to meet before being recognized in the financial statements and provides guidance on recognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition issues. Interest and penalties are classified as a component of interest and other expenses. To date, the Company has not been assessed, nor paid, any interest or penalties. Uncertain tax positions are measured and recorded by establishing a threshold for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Only tax positions meeting the more-likely-than-not recognition threshold at the effective date may be recognized or continue to be recognized. Earnings (Loss) Per Share The Company reports earnings (loss) per share in accordance with ASC 260, "Earnings per Share." Basic earnings (loss) per share is computed by dividing net income (loss), after deducting preferred stock dividends accumulated during the period, by the weighted-average number of shares of common stock outstanding during each period. Diluted earnings per share is computed by dividing net loss by the weighted-average number of shares of common stock, common stock equivalents and other potentially dilutive securities outstanding during the period. As of September 30, 2016 and 2015, the Company did not have any outstanding common stock equivalents or any other potentially dilutive securities. Recent Accounting Pronouncements Recent accounting pronouncements issued by the FASB and the SEC did not have, or are not believed by management to have, a material impact on the Company's present or future consolidated financial statements.

GOING CONCERN AND MANAGEMENT'S

GOING CONCERN AND MANAGEMENT'S PLANS	9 Months Ended
	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN AND MANAGEMENT'S PLANS	NOTE 3 – GOING CONCERN AND MANAGEMENT’S PLANS The accompanying unaudited condensed consolidated financial statements have been prepared assuming the Company will continue as a going concern. During the nine months ended September 30, 2016 the Company had net income of $61,443 and generated cash of $193,645 in operations. Through August 5, 2016, the Company was dependent on the Marketing Agreement with MFHC, (the Company and MFHC agreed to cancel the Marketing Agreement which generated these revenues as a result of the sale by MFHC of substantially all of their assets) and is now dependent on the Consulting, Store Expansion and Marketing Agreements. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Management’s Plans The Company’s plans include the realization of the Expansion Agreement, Consulting Agreement and Marketing Agreement to provide the Company with working capital. The Company plans also include setting up an alliance (the “Alliance”). On April 2, 2013, The Company executed a 10 Year Supply Agreement with GN Hearing Care Corporation, DBA as GN Resound (“GN Resound”), one of the world’s leading manufacturers of hearing devices. This supply agreement enables the Company to offer hearing aids to independent hearing aid practitioners. The Alliance will setup members to sell private label hearing devices that are manufactured and shipped by GN ReSound.

NOTE RECEIVABLE, OFFICER

NOTE RECEIVABLE, OFFICER	9 Months Ended
	Sep. 30, 2016
Receivables [Abstract]
NOTE RECEIVABLE, OFFICER	NOTE 4 – NOTE RECEIVABLE, OFFICER On April 1, and June 25, 2013, in exchange for two notes receivable, the Company loaned the President of the Company $10,000 and $10,500, respectively. The terms of the notes include an interest rate of 1.5% per annum and the notes, as amended are due on their fifth year anniversary, with quarterly payment beginning October 1, 2016. Interest income, related party of $77 and $231 was recorded for the three and nine months ended September 30, 2016 and 2015, respectively. As of September 30, 2016 and December 31, 2015, notes and interest receivable, related party was $21,541 and $21,311, respectively.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 5 – RELATED PARTY TRANSACTIONS The Company loaned the President $20,500 during the year ended December 31, 2013 (see Note 4). The Company recorded interest income of $77 and $231 for the three and nine months ended September 30, 2016 and 2015. Pursuant to a Marketing Agreement (cancelled August 5, 2016), the Company provided marketing programs to promote and sell hearing aid instruments and related devices to Moore Family Hearing Company (“MFHC”). MFHC owned and operated retail hearing aid stores. Based on common control of MFHC and the Company, all transactions with MFHC are classified as related party transactions. On August 8, 2016, in consideration of $128,000 (the “Cancellation Fee”), MFHC and the Company agreed to cancel the Marketing Agreement as a result of the sale by MFHC of substantially all of their assets. On August 11, MFHC paid $229,622 to the Company (inclusive of the balance owed as of June 30, 2016, the Cancellation Fee and other related party activity). Pursuant to the Marketing Agreement, beginning in January 2014, the monthly fee was increased from $2,500 to $3,200 per retail location. For January through June 2015, there were 18 MFHC retail stores and one store was added July 1, 2015, resulting in revenues of $182,400 and $528,000 for the three and nine months ended September 30, 2015, respectively. From January 1, 2016 thru August 5, 2016, there were 20 stores resulting in revenue of $74,667 and $458,667 for the three and nine months ended September 30, 2016. Also, during the three and nine months ended September 30, 2016, the Company invoiced MFHC $92,108 and $330,353, respectively, for the production, printing and mailing of direct mail advertising materials. Lastly, the Company recognized $128,000 from the Cancellation Fee of the Marketing Agreement as related party income for the three and nine months ended September 30, 2016. The Company has offset the accounts receivable owed from MFHC for expenses of the Company that have been paid by MFHC. As a result of these payments in addition to MFHC’s payments to the Company during the nine months ended September 30, 2016, the balance due from MFHC as of September 30, 2016 and December 31, 2015 is $18,696 and $99,496, respectively. On April 1, 2013, the Company entered into a five year sublease agreement with MFHC to sublease approximately 729 square feet of office space for $1,500 per month. The monthly rent reduced the amounts owed to the Company from MFHC for the marketing services provided to MFHC. For the three and nine months ended September 30, 2016 and 2015, the Company expensed $4,500 and $13,500 related to this lease. On February 1, 2016, the Company entered into a one year sublease agreement with MFHC to sublease approximately 2,119 square feet of office space for $4,026 per month. The monthly rent reduced the amounts owed to the Company from MFHC for the marketing services provided to MFHC. Effective April 30, 2016, MFHC released the Company from the sublease. For the nine months ended September 30, 2016, the Company expensed $15,078, respectively, related to this lease. Effective August 1, 2016 the Company began compensating the CEO and CFO $225,000 and $125,000, respectively. The Company is currently negotiating the terms and condition of an employment contracts for the CEO and CFO including the annual salary as stated. For the three and nine months ending September 30, 2016 and 2015, the Company’s President was being compensated from MFHC, as he also held a position with MFHC. Prior to August 1, 2016, the Company estimated the portion of the President’s salary that should be allocated to the Company, and subsequent to August 1, 2016, the Company agreed to compensation of $225,000 per year. Accordingly, the Company has expensed $37,500 and $60,791 for the President, for the three and nine months ended September 30, 2016, respectively and $13,125 and $36,790 for the three and nine months ended September 30, 2015, respectively. Effective August 1, 2016, the Company agreed to compensate our Chief Financial Officer $125,000 per annum. For the three and nine months ended September 30, 2016, the Company recognized $20,833 of expense. In September 2016, certain of the Company’s stockholders organized a new limited liability company in the state of California. As of September 30, 2016, the Company advanced the related party $441,000 based on proposed consulting services. In October 2016, the Company advanced an additional $229,500 to the related party based on proposed consulting services. In November 2016, the related party returned $610,500 as the Company and the related party decided not to follow through with the consulting agreements. The difference of the amount advanced of $670,500 and the amount returned to the Company of $610,500, will be deducted from payments due the same stockholder(s). In November 2016, our Chairman formed a California limited liability Company (“LLC”), for the purpose of providing consulting services to the Company. The Company intends to enter into an agreement with the LLC and to pay the LLC $375,000 prior to November 30, 2016 and $519,000 on or before February 1, 2017 for consulting services provided and to be provided. For the three and nine months ended September 30, 2016, the Company accrued commissions payable of $318,000. Of the $318,000 amount accrued, $91,666 was recognized as commissions expense- related party for the three and nine months ended September 30, 2016, and the remaining $226,334 was recorded as deferred commissions as of September 30, 2016, as amounts owed but not yet earned.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2016
Commitments and contingencies
COMMITMENTS AND CONTINGENCIES	NOTE 6– COMMITMENTS AND CONTINGENCIES Lease Agreements On April 1, 2013, the Company entered into a five year sublease agreement with MFHC to sublease approximately 729 square feet of office space for $1,500 per month. The monthly rent reduced the amounts owed to the Company from MFHC for the marketing services provided to MFHC. On February 1, 2014, the Company entered into a two year sublease agreement for approximately 2,119 square feet of office space in Roseville, Ca, for $3,000 per month. Effective February 1, 2016, the Company entered into a one year sublease for office space from MFHC for a monthly cost of $4,026. The parties terminated the sublease effective April 30, 2016. Consulting Agreements Effective June 20, 2012, the Company entered into an eighteen month Business Consulting Agreement (the “BCA”). Pursuant to the BCA, the consultant is to assist the Company in becoming a “public” company and the Company agreed to a monthly compensation of $2,500 and the issuance of the amount of shares equal to 4.9% of the outstanding shares of the Company at all times until the completion of the Transaction. The Company has issued the consultant 2,940,000 shares of common stock. The Company continues to use the services of the consultant on a month to month basis at the rate of $2,500 per month. For the three and nine months ended September 30, 2016 and 2015, respectively, the Company has recorded expenses of $7,500 and $22,500 in professional fees. On August 5, 2016, the Company along with Mark Moore (“Mark”, the Company’s chairman), Matthew Moore (“Matthew”, the Company’s Chief Executive Officer) and Kim Moore (“Kim”, the Company’s Chief Financial Officer) entered into a Store Expansion Consulting Agreement (the “Expansion Agreement”). Mark, Matthew and Kim are herein referred to collectively as the Moores. Pursuant to the Expansion Agreement, the Company and the Moores will be responsible for all physical plant and marketing details for new store openings during the initial term of six-months. The Company will recognize revenue as each new store opens under this portion of the agreement. For the three and nine months ended September 30, 2016, no new stores were opened and accordingly, no revenue was recognized. In addition to the consulting fees under the Store Expansion Consulting Agreement, the Company is also eligible for an earn out fee for each new location that opens during the consulting period, and becomes profitable within six months of its opening date. No revenue was recognized under this portion of the agreement during the three and nine months ended September 30, 2016. Also on August 5, 2016, the Company and the Moores entered into a Consulting Agreement (the “Consulting Agreement”) with the same party as the Store Expansion Agreement. Under the Consulting Agreement, including the Non-Compete provision covering a ten mile radius of any retail store, the Company and the Moores will provide unlimited licensing of the Intela-Hear brand name, exclusive access to the Aware aural rehab program within 10 miles of retail stores, exclusive territory of all services within 10 miles of retail stores and 40 hours per month of various consulting services. The Consulting Agreement continues until January 31, 2019, unless terminated for cause, as defined in the Consulting Agreement. The Company recognized $152,777 of revenue from the Consulting Agreement for the three and nine months ended September 30, 2016. Effective August 5, 2016, the Company entered into a Marketing Agreement (the “Marketing Agreement”). Pursuant to the Marketing Agreement, the Company will provide marketing concepts and designs to promote its’ products and use the Company’s advertising services for an initial six month period. Pursuant to the Marketing Agreement and the current structure, the Company will receive $50,000 per month. The Marketing Agreement may be renewed for additional six month periods, and either party may terminate the Marketing Agreement by providing sixty days notice to the other party, or for non-performance upon written notice, granting a 5 day period to cure the non-performance. For the three and nine months ended September 30, 2016, the Company recognized $93,548 of revenue from the Marketing Agreement.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2016
Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 7 – STOCKHOLDERS’ EQUITY COMMON STOCK The Company has 225,000,000 authorized shares of $0.0001 common stock. As of September 30, 2016 and December 31, 2015, there are 60,906,000 shares of common stock outstanding. On October 28, 2016, a majority of the Company’s shareholders, based on the Company’s Board of Directors (the “BOD”) recommendation approved a forward split of the common stock whereby an additional two shares of common stock will be issued for every share of common stock outstanding (the “Forward Split”). The Company filed Amended and Restated Articles of Incorporation with the State of Nevada on October 31, 2016. All share amounts for all periods presented have been retroactively adjusted to reflect the Forward Split. PREFERRED STOCK The Company has 25,000,000 authorized shares of $0.0001 preferred stock. As of September 30, 2016 and December 31, 2015 there were no shares of preferred stock issued and outstanding.

SALES CONCENTRATION AND CONCENT

SALES CONCENTRATION AND CONCENTRATION OF CREDIT RISK	9 Months Ended
	Sep. 30, 2016
Risks and Uncertainties [Abstract]
SALES CONCENTRATION AND CONCENTRATION OF CREDIT RISK	NOTE 8 – SALES CONCENTRATION AND CONCENTRATION OF CREDIT RISK Cash Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash. The Company maintains cash balances at one financial institution, which is insured by the Federal Deposit Insurance Corporation. As of September 30, 2016, the Company has approximately $49,400 in excess of the insurance limit at one financial institution. The Company has not experienced any losses in such accounts. Sales Concentration Following is a summary of customers who accounted for more than ten percent (10%) of the Company’s revenues for the three and nine months ended September 30, 2016 and 2015: Three months ended September 30, Nine months ended September 30, Customer 2016 2015 2016 2015 Customer A 57.3 % — 30.1 % — Customer B — 16.9 % — 18.1 % Customer C, related party 42.7 % 83.1 % 69.9 % 81.9 % Total 100 % 100 % 100 % 100 % Accounts receivable of $18,696 and $99,496 as of September 30, 2016 and December 31, 2015 respectively, is due from a related party.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 9 – SUBSEQUENT EVENTS On October 28, 2016, a majority of the Company’s shareholders, based on the Company’s Board of Directors (the “BOD”) recommendation approved a forward split of the common stock whereby an additional two shares of common stock will be issued for every share of common stock outstanding (the “Forward Split”). On October 31, 2016, the Company filed Amended and Restated Articles of Incorporation with the Secretary of State of Nevada. The forward split shares were issued November 3, 2016. In November 2016, our Chairman formed a California limited liability Company, for the purpose of providing consulting services to the Company (See Note 5). On November 15, 2016, the Company entered into an employment agreement with our CEO and CFO which includes an annual base salary of $225,000 and $125,000, respectively.