Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 14, 2022 | |
Cover [Abstract] | ||
Entity Registrant Name | APPSOFT TECHNOLOGIES, INC. | |
Entity Central Index Key | 0001651992 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Emerging Growth Company | true | |
Entity Current Reporting Status | Yes | |
Document Period End Date | Sep. 30, 2022 | |
Entity Filer Category | Non-accelerated Filer | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Entity Ex Transition Period | false | |
Entity Common Stock Shares Outstanding | 4,145,103 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 333-206764 | |
Entity Incorporation State Country Code | NV | |
Entity Tax Identification Number | 47-3427919 | |
Entity Address Address Line 1 | 1225 Franklin Avenue | |
Entity Address Address Line 2 | Suite 325 | |
Entity Address City Or Town | Garden City | |
Entity Address State Or Province | NY | |
Entity Address Postal Zip Code | 11530 | |
City Area Code | 516 | |
Local Phone Number | 224-7717 | |
Entity Interactive Data Current | Yes |
Balance Sheets
Balance Sheets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash | $ 13 | $ 325 |
TOTAL CURRENT ASSETS | 13 | 325 |
TOTAL ASSETS | 13 | 325 |
CURRENT LIABILITIES | ||
Accounts Payable and Accruals | 21,124 | 21,124 |
Accrued Interest | 18,465 | 13,753 |
TOTAL CURRENT LIABILITIES | 39,589 | 34,877 |
Note Payable | 322,741 | 303,941 |
TOTAL LIABILITIES | 362,330 | 338,818 |
COMMITMENTS AND CONTINGENCIES | 0 | 0 |
STOCKHOLDER'S EQUITY | ||
Series A Cumulative, Convertible Preferred stock ($0.0001 par value; 10,000,000 shares authorized; 1,936,000 and 1,936,000 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively) | 193 | 193 |
Common stock ($0.0001 par value; 1,000,000,000 shares authorized; 4,504,103 and 4,504,103 shares issued and outstanding at September 30, 2022 and December 31, 2021, respectively) | 449 | 449 |
Additional Paid in Capital | 491,458 | 491,458 |
Additional Paid in Capital - Stock Warrants | 42,400 | 42,400 |
Accumulated Deficit | (896,817) | (872,993) |
TOTAL STOCKHOLDER'S EQUITY (DEFICIT) | (362,317) | (338,493) |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY/(DEFICIT) | $ 13 | $ 325 |
Balance Sheet (Parenthetical)
Balance Sheet (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 |
Common Stock, Shares, Issued | 4,504,103 | 4,504,103 |
Common Stock, Shares, Outstanding | 4,504,103 | 4,504,103 |
Series A Cumulative Convertible Preferred Stock [Member] | ||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 |
Preferred Stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred Stock, shares issued | 1,936,000 | 1,936,000 |
Preferred Stock, shares outstanding | 1,936,000 | 1,936,000 |
Statements of Operations
Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statements of Operations | ||||
Sales | $ 0 | $ 0 | $ 0 | $ 0 |
Total Revenue | 0 | 0 | 0 | 0 |
EXPENSES: | ||||
Selling, General and Administrative | 1,047 | 5,370 | 8,933 | 18,670 |
Amortization/Depreciation Expense | 0 | 0 | 0 | 207 |
Interest Expense | 1,606 | 1,362 | 4,712 | 3,892 |
Outside Services | 0 | 10,891 | 1,629 | 17,814 |
Professional Fees | 3,860 | 605 | 8,550 | 1,440 |
Total Expense | 6,513 | 18,228 | 23,824 | 42,023 |
Loss from operations | (6,513) | (18,228) | (23,824) | (42,023) |
Provision for Income Taxes | 0 | 0 | 0 | 0 |
NET LOSS | $ (6,513) | $ (18,228) | $ (23,824) | $ (42,023) |
Weighted average common shares outstanding, basic and fully diluted | 4,504,103 | 4,311,795 | 4,504,103 | 4,504,103 |
Basic and fully diluted net loss per common share: | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Statements of Cash Flows
Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (23,824) | $ (42,023) |
Amortization and Depreciation | 0 | 207 |
Changes in Assets and Liabilities: | ||
Increase (decrease) in Accounts Payable and Other Accruals | 0 | (2,500) |
Increase (decrease) in Accrued Interest Expense | 4,712 | 3,893 |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | (19,112) | (40,423) |
CASH FLOWS TO/(FROM) FINANCING ACTIVITIES: | ||
Note Payable - borrowings | 18,800 | 40,438 |
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES | 18,800 | 40,438 |
NET INCREASE(DECREASE) IN CASH AND CASH EQUIVALENTS | (312) | 15 |
CASH AND CASH EQUIVALENTS, | ||
BEGINNING OF THE PERIOD | 325 | 6 |
END OF THE PERIOD | 13 | 21 |
CASH PAID DURING THE PERIOD FOR: | ||
Interest | 0 | 0 |
Taxes | $ 0 | $ 0 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity - USD ($) | Total | Common Stock | Preferred Stock | Additional Paid-in Capital | Additional Paid-in Capital Stock Warrants | Accumulated Deficit |
Balance, shares at Dec. 31, 2020 | 4,154,103 | 1,937,400 | ||||
Balance, amount at Dec. 31, 2020 | $ (287,639) | $ 414 | $ 194 | $ 491,492 | $ 42,400 | $ (822,139) |
Preferred Shares converted to Common Shares, shares | 350,000 | (1,400) | ||||
Preferred Shares converted to Common Shares, amount | $ 35 | $ (1) | (34) | |||
Net Loss | (42,023) | $ 0 | $ 0 | 0 | 0 | (42,023) |
Balance, shares at Sep. 30, 2021 | 4,504,103 | 1,936,000 | ||||
Balance, amount at Sep. 30, 2021 | (329,662) | $ 449 | $ 193 | 491,458 | 42,400 | (864,162) |
Balance, shares at Dec. 31, 2021 | 4,504,143 | 1,936,000 | ||||
Balance, amount at Dec. 31, 2021 | (338,493) | $ 449 | $ 193 | 491,458 | 42,400 | (872,993) |
Net Loss | (23,824) | $ 0 | $ 0 | 0 | 0 | (23,824) |
Balance, shares at Sep. 30, 2022 | 4,504,143 | 1,936,000 | ||||
Balance, amount at Sep. 30, 2022 | $ (362,317) | $ 449 | $ 193 | $ 491,458 | $ 42,400 | $ (896,817) |
BUSINESS ACTIVITY
BUSINESS ACTIVITY | 9 Months Ended |
Sep. 30, 2022 | |
BUSINESS ACTIVITY | |
NOTE A -BUSINESS ACTIVITY | NOTE A—BUSINESS ACTIVITY AppSoft Technologies (the "Company”) was organized under the laws of the State of Nevada March 24, 2015. The Company’s fiscal year end is December 31 st |
GOING CONCERN
GOING CONCERN | 9 Months Ended |
Sep. 30, 2022 | |
GOING CONCERN | |
NOTE B - GOING CONCERN | NOTE B—GOING CONCERN The accompanying financial statements have been prepared on a going concern basis, which assumes the Company will realize its assets and discharge its liabilities in the normal course of business. As reflected in the accompanying financial statements, the Company has a deficit accumulated of $896,817 and cash used in operations of $19,112 at the period ended September 30, 2022. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. These circumstances raise substantial doubt about the Company’s ability to continue as a going concern for the 12 months from the date when these financial statements were issued. The accompanying financial statements do not include any adjustments that might arise because of this uncertainty. To address these aforementioned, management has undertaken the following initiatives: 1) enter into discussions to secure additional equity funding from current or new shareholders; 2) undertake a program to continue to monitor the Company’s ongoing working capital requirements and minimum expenditure commitments; 3) continue their focus on maintaining an appropriate level of corporate overhead in line with the Company’s available cash resources. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NOTE C - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE C—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation- The financial statements included herein were prepared under Generally Accepted Accounting Principles (GAAP). All adjustments have been made which in the opinion of management are necessary, normal, and recurring in nature for presentation. Interim filings should be read in conjunction with the Company’s annual report as of December 31, 2021. Cash and Cash Equivalents- For purposes of the Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents. Management’s 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 financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The financial statements above reflect all of the costs of doing business. Revenue Recognition- On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.2014-09, Revenue from Contracts with Customers, Topic 606 (“ASC 606”), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new revenue standard replaces most existing revenue recognition guidance in GAAP and permits the use of either the full retro30spective or modified retrospective transition method. The Company adopted this standard using the modified basis effective January 1, 2019, and given the Company's limited revenue, the modified retrospective basis has no material impact on prior years given the limited revenue. Comprehensive Income (Loss) - The Company reports Comprehensive income and its components following guidance set forth by section 220-10 of the FASB Accounting Standards Codification which establishes standards for the reporting and display of comprehensive income and its components in the financial statements. There were no items of comprehensive income (loss) applicable to the Company during the period covered in the financial statements. Net Income per Common Share- Net loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. There was a total of 1,936,000 upon conversion of preferred stock as of September 30, 2022. Deferred Taxes- The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. Fair Value of Financial Instruments- The carrying amounts reported in the balance sheet for cash, accounts receivable and payable approximate fair value based on the short-term maturity of these instruments. Accounts Receivable- Accounts deemed uncollectible are written off in the year they become uncollectible. As of September 30, 2022 and 2021, the balance in Accounts Receivable was $0 and $0. Impairment of Long-Lived Assets- The Company evaluates the recoverability of its fixed assets and other assets in accordance with section 360-10-15 of the FASB Accounting Standards Codification for disclosures about Impairment or Disposal of Long-Lived Assets. Disclosure requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds its expected cash flows. If so, it is impaired and is written down to fair value, which is determined based on either discounted future cash flows or appraised values. The Company adopted the statement on inception. No impairments of these types of assets were recognized during the periods ended September 30, 2022 and 2021. 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. Fair Value for Financial Assets and Financial Liabilities- The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. The carrying amounts of the Company’s financial assets and liabilities, such as cash and accrued expenses, approximate their fair values because of the short maturity of these instruments. The Company’s note payable approximates the fair value of such instrument based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangement at the periods ended September 30, 2022 and 2021. The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at September 30, 2022, nor gains or losses are reported in the statement of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date for the periods ended September 30, 2022 and 2021. Recently Issued Accounting Pronouncements In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows. Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to the Company’s financial position, results of operations or cash flows. |
SEGMENT REPORTING
SEGMENT REPORTING | 9 Months Ended |
Sep. 30, 2022 | |
SEGMENT REPORTING | |
NOTE D - SEGMENT REPORTING | NOTE D-SEGMENT REPORTING The Company follows the guidance set forth by section 280-10 of the FASB Accounting Standards Codification for reporting and disclosure on operating segments of the Company. It also requires segment disclosures about products and services, geographic areas, and major customers. The Company determined that it did not have any separately reportable operating segments as of September 30, 2022 and 2021. |
CAPITAL STOCK
CAPITAL STOCK | 9 Months Ended |
Sep. 30, 2022 | |
CAPITAL STOCK | |
NOTE E - CAPITAL STOCK | NOTE E-CAPITAL STOCK The Company is authorized to issue 1,000,000,000 Common Shares at $0.0001 par value per share. Total issued and outstanding shares of common stock is 4,504,103 and 4,504,103 as of September 30, 2022 and 2021, respectively. Total issued and outstanding shares of preferred stock is 1,936,000 and 1,936,000 as of September 30, 2022 and 2021, respectively. The Company is authorized to issue 10,000,000 Series A Cumulative, Convertible Preferred Shares (Preferred Stock) at $0.0001 par value per share. During the period from inception (March 24, 2015) through December 31, 2016, the Company issued 2,000,000 shares of preferred stock at $0.05 per share to Ventureo, LLC in exchange for $50,000 in cash and Phone Apps with a fair market value of $50,000 for a total of $100,000. The shares of “Preferred Stock” are convertible, at the option of the holder, into shares of common stock at a conversion price of $0.005 per share. The holder of the “Preferred Stock” may not convert any portion of the “Preferred Stock” if, after giving effect to such conversion, the holder would beneficially own in excess of 4.99%, except that the holder may, by written notice to the Company, increase or decrease this percentage up to a maximum of 9.99%, provided that any such increase will not be effective until the 61 st The Company is authorized to issue 10,000,000 Series A Cumulative, Convertible Preferred Shares (Preferred Stock) at $0.0001 par value per share. During the period from inception (March 24, 2015) through December 31, 2016, the Company issued 2,000,000 shares of preferred stock at $0.05 per share to Ventureo, LLC in exchange for $50,000 in cash and Phone Apps with a fair market value of $50,000 for a total of $100,000. The shares of “Preferred Stock” are convertible, at the option of the holder, into shares of common stock at a conversion price of $0.005 per share. The holder of the “Preferred Stock” may not convert any portion of the “Preferred Stock” if, after giving effect to such conversion, the holder would beneficially own in excess of 4.99%, except that the holder may, by written notice to the Company, increase or decrease this percentage up to a maximum of 9.99%, provided that any such increase will not be effective until the 61 st The Company agreed to reduce the price at which each share of Series A Preferred Stock, of which Ventureo is the sole holder, converts into Common Stock from $0.005 per share to $0.0002 per share. The Company filed an amendment to its Articles of Incorporation reflecting the change of the conversion price. The Company’s Board approved the Agreement by unanimous written consent to action on November 30, 2018, and the Majority Holders approved the Agreement by the Stockholder Consent on December 4, 2018. During 2021, the Company converted 1,400 shares of Preferred Stock into 350,000 shares of Common Stock. Capital Contributions Brian Kupchik, President and CEO made no capital contributions during the nine months ended September 30, 2022 and 2021. |
INCOME TAX
INCOME TAX | 9 Months Ended |
Sep. 30, 2022 | |
INCOME TAX | |
NOTE F - INCOME TAX | NOTE F–INCOME TAX The Company provides for income taxes under (now included under Accounting Standards Codification (ASC), 740), Accounting for Income Taxes. ASC 740 requires the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all the deferred tax assets will not be realized. For Federal income tax purposes, the Company has net operating loss carry forwards that expire through 2030. The net operating loss carry forward as of September 30, 2022 is approximately $896,800 and as of September 30, 2021 is $864,100 approximately. The total deferred tax asset is approximately $187,000 and $181,000 for the periods ended September 30, 2022 and 2021, respectively. No tax benefit has been reported in the financial statements because after evaluating our own potential tax uncertainties, the Company has determined that there are no material uncertain tax positions that have a greater than 50% likelihood of reversal if the Company were to be audited. The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 21% to the net loss before provision for income taxes for the following reasons: The Company is not obligated to pay State Income Taxes because it is a Nevada corporation. The Company does not currently have any tax returns open for examination. |
NOTES PAYABLE AND NOTE EXCHANGE
NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT | 9 Months Ended |
Sep. 30, 2022 | |
NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT | |
NOTE G - NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT | NOTE G—NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT On November 30, 2018, the Company entered into an Exchange Agreement with its Creditors under which each Creditor agreed to cancel the Original Notes issued and accept a new promissory note in the amount of $160,314 from the Company evidencing the amount of principal and accrued interest thereon through such date owed to the Creditor that mature on December 31, 2021 in exchange for the Original Notes. In consideration for the exchange of the Original Notes for the New Notes, the Company agreed to reduce the price at which each share of Series A Preferred Stock, of which Ventureo is the sole holder, converts into Common Stock from $0.005 per share to $0.0002 per share. The Company filed an amendment to its Articles of Incorporation reflecting the change of the conversion price. The Company’s Board approved the Agreement by unanimous written consent to action on November 30, 2018, and the Majority Holders approved the Agreement by the Stockholder Consent on December 4, 2018. Although new borrowings are not yet formalized into a note agreement, the Company and the lender agree that the new loans have the same terms and conditions for the formalized notes. The total amount of the Notes Payable is $322,741 and bears interest at 2% per year. Interest expense for the nine-month periods ended September 30, 2022 and 2021 is $4,712 and $3,892, respectively. Total accrued interest as of September 30, 2022 was $18,465. Detail of the Notes Payable is as follows: · 2018 Principal and Interest consolidated into new promissory note in the amount of $160,314. · During the 1 st · During the 2 nd · During the 3 rd · During the 4 th As of September 30, 2020, the Company executed a Drawdown Promissory Note in favor of Bryan Glass Securities, Inc. (“BGS”) under which the Company is entitled to borrow up to an aggregate of $150,000 during the 2020 and 2021 calendar years (the “Drawdown Note”). The original drawdown amount was $50,000 but has been increased to $150,000 in 2021 – see Note I below. Under the Drawdown Note, the Company must request a drawdown against the instrument not less than three days prior to the date on which it requires the proceeds. The unpaid principal amount of the Drawdown Note bears interest at the rate of 2% per year. On October 17, 2022, BGS agreed to extend the maturity date of the Drawdown Note to December 31, 2024. · During the year 2020, $38,799 of the drawdown was borrowed. · During the year 2021, $62,721 of the drawdown was borrowed. · During the 1 st · During the 2 nd · During the 3 rd As of September 30, 2022, the Company has borrowed an aggregate of $120,320 from BSG under the Drawdown Note and the sum of $29,679 remains available for advances thereunder. |
FIXED ASSETS
FIXED ASSETS | 9 Months Ended |
Sep. 30, 2022 | |
FIXED ASSETS | |
NOTE H - FIXED ASSETS | NOTE H—FIXED ASSETS In July 2016, the Company purchased computer equipment for $2,079. The computer equipment was depreciated over its estimated useful life of 5 years. Annual depreciation was $416. Depreciation expense was $0 and $207 for the nine months ended September 30, 2022 and 2021, respectively. The Accumulated Depreciation is $2,079 and $2,079 as of September 30, 2022 and 2021. |
MATERIAL EVENTS SUBSEQUENT EVEN
MATERIAL EVENTS SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2022 | |
MATERIAL EVENTS SUBSEQUENT EVENTS | |
NOTE I - MATERIAL EVENTS/SUBSEQUENT EVENTS | NOTE I—MATERIAL EVENTS/SUBSEQUENT EVENTS Since the close of the period covered by the financial statements of which these notes form a part, the following material transactions have occurred: Subsequent Events The Company evaluated for subsequent events through the issuance date of the Company’s financial statements and has determined no subsequent events have occurred. On October 17, 2022, BGS agreed to extend the maturity date of the Drawdown Note to December 31, 2024. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Basis of Presentation | Basis of Presentation- The financial statements included herein were prepared under Generally Accepted Accounting Principles (GAAP). All adjustments have been made which in the opinion of management are necessary, normal, and recurring in nature for presentation. Interim filings should be read in conjunction with the Company’s annual report as of December 31, 2021. |
Cash and Cash Equivalents | Cash and Cash Equivalents- For purposes of the Statement of Cash Flows, the Company considers liquid investments with an original maturity of three months or less to be cash equivalents. |
Management's Use of Estimates | Management’s 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 financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The financial statements above reflect all of the costs of doing business. |
Revenue recognition | Revenue Recognition- On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No.2014-09, Revenue from Contracts with Customers, Topic 606 (“ASC 606”), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The new revenue standard replaces most existing revenue recognition guidance in GAAP and permits the use of either the full retro30spective or modified retrospective transition method. The Company adopted this standard using the modified basis effective January 1, 2019, and given the Company's limited revenue, the modified retrospective basis has no material impact on prior years given the limited revenue. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) - The Company reports Comprehensive income and its components following guidance set forth by section 220-10 of the FASB Accounting Standards Codification which establishes standards for the reporting and display of comprehensive income and its components in the financial statements. There were no items of comprehensive income (loss) applicable to the Company during the period covered in the financial statements. |
Net Income per Common Share | Net Income per Common Share- Net loss per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. There was a total of 1,936,000 upon conversion of preferred stock as of September 30, 2022. |
Deferred Taxes | Deferred Taxes- The Company accounts for income taxes under Section 740-10-30 of the FASB Accounting Standards Codification. Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance to the extent management concludes it is more likely than not that the assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statements of operations in the period that includes the enactment date. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments- The carrying amounts reported in the balance sheet for cash, accounts receivable and payable approximate fair value based on the short-term maturity of these instruments. |
Accounts Receivable | Accounts Receivable- Accounts deemed uncollectible are written off in the year they become uncollectible. As of September 30, 2022 and 2021, the balance in Accounts Receivable was $0 and $0. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets- The Company evaluates the recoverability of its fixed assets and other assets in accordance with section 360-10-15 of the FASB Accounting Standards Codification for disclosures about Impairment or Disposal of Long-Lived Assets. Disclosure requires recognition of impairment of long-lived assets in the event the net book value of such assets exceeds its expected cash flows. If so, it is impaired and is written down to fair value, which is determined based on either discounted future cash flows or appraised values. The Company adopted the statement on inception. No impairments of these types of assets were recognized during the periods ended September 30, 2022 and 2021. |
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. |
Fair Value for Financial Assets and Financial Liabilities | Fair Value for Financial Assets and Financial Liabilities- The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 establishes a framework for measuring fair value in accounting principles generally accepted in the United States of America (U.S. GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, Paragraph 820-10-35-37 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three levels of fair value hierarchy defined by Paragraph 820-10-35-37 are described below: Level 1 Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. Level 2 Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. Level 3 Pricing inputs that are generally unobservable inputs and not corroborated by market data. The carrying amounts of the Company’s financial assets and liabilities, such as cash and accrued expenses, approximate their fair values because of the short maturity of these instruments. The Company’s note payable approximates the fair value of such instrument based upon management’s best estimate of interest rates that would be available to the Company for similar financial arrangement at the periods ended September 30, 2022 and 2021. The Company does not have any assets or liabilities measured at fair value on a recurring or a non-recurring basis, consequently, the Company did not have any fair value adjustments for assets and liabilities measured at fair value at September 30, 2022, nor gains or losses are reported in the statement of operations that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date for the periods ended September 30, 2022 and 2021. |
Recently Issued Accounting Pronouncements | In August 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-06, Debt — Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging — Contracts in Entity’s Own Equity (Subtopic 815-40) (“ASU 2020-06”) to simplify accounting for certain financial instruments. ASU 2020-06 eliminates the current models that require separation of beneficial conversion and cash conversion features from convertible instruments and simplifies the derivative scope exception guidance pertaining to equity classification of contracts in an entity’s own equity. The new standard also introduces additional disclosures for convertible debt and freestanding instruments that are indexed to and settled in an entity’s own equity. ASU 2020-06 amends the diluted earnings per share guidance, including the requirement to use the if-converted method for all convertible instruments. ASU 2020-06 is effective January 1, 2022 and should be applied on a full or modified retrospective basis, with early adoption permitted beginning on January 1, 2021. The Company is currently assessing the impact, if any, that ASU 2020-06 would have on its financial position, results of operations or cash flows. Other pronouncements issued by the FASB or other authoritative accounting standards groups with future effective dates are either not applicable or are not expected to be significant to the Company’s financial position, results of operations or cash flows. |
GOING CONCERN (Details Narrativ
GOING CONCERN (Details Narrative) - USD ($) | 9 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2022 | Dec. 31, 2021 | |
GOING CONCERN | ||||
Accumulated Deficit | $ (896,817) | $ (896,817) | $ (872,993) | |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ (19,112) | $ (40,423) |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Incremental Common Shares Attributable to Dilutive Effect of Conversion of Preferred Stock | 1,936,000 | |
Accounts Receivable | $ 0 | $ 0 |
CAPITAL STOCK (Details Narrativ
CAPITAL STOCK (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | 21 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | Dec. 31, 2016 | Sep. 30, 2021 | |
Common Stock, Shares, Outstanding | 4,504,103 | 4,504,103 | 4,504,103 | |
Common Stock, Shares, Issued | 4,504,103 | 4,504,103 | 4,504,103 | |
Common Stock, Shares Authorized | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |
Common Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | $ 0.0001 | |
Original Issue Price | $ 0.05 | |||
Common Stock, Convertible, Conversion Price, Decrease | 0.0002 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.005 | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 50,000 | |||
Stock Issued During Period, Value, New Issues | $ 100,000 | |||
Preferred Stock, Shares Issued | 2,000,000 | |||
Convertible Preferred Stock Conversion Price | 0.005 | $ 0.005 | ||
Payments to Acquire Productive Assets, Total | $ 50,000 | |||
Minimum [Member] | ||||
Common Stock, Convertible, Conversion Price, Decrease | 0.0002 | |||
Convertible preferred stock beneficially ownership percentage | 4.99% | |||
Maximum [Member] | ||||
Common Stock, Convertible, Conversion Price, Decrease | 0.005 | |||
Convertible preferred stock beneficially ownership percentage | 9.99% | |||
Series A Preferred Stock [Member] | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.0001 | $ 0.0001 | ||
Preferred Stock, Shares Issued | 1,936,000 | 1,936,000 | ||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | |
Preferred Stock, Shares Outstanding | 1,936,000 | 1,936,000 | ||
Common Stocks | ||||
Preferred Shares Converted to Common Shares | 350,000 | |||
Convertible preferred stock, shares | 1,400 | |||
Minimums [Member] | Series A Preferred Stock [Member] | ||||
Convertible preferred stock beneficially ownership percentage | 4.99% | |||
Maximums [Member] | Series A Preferred Stock [Member] | ||||
Convertible preferred stock beneficially ownership percentage | 9.99% | |||
Ventureo, LLC [Member] | Series A Preferred Stock [Member] | ||||
Original Issue Price | $ 0.05 | |||
Preferred Stock, Par or Stated Value Per Share | $ 0.005 | |||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 50,000 | |||
Stock Issued During Period, Value, New Issues | $ 100,000 | |||
Preferred Stock, Shares Issued | 2,000,000 | |||
Convertible Preferred Stock Conversion Price | $ 0.005 | |||
Payments to Acquire Productive Assets, Total | $ 50,000 | |||
Preferred Stock, Shares Authorized | 10,000,000 |
INCOME TAX (Details Narrative)
INCOME TAX (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
INCOME TAX | ||
Operating Loss Carryforwards | $ 896,800 | $ 864,100 |
Federal Statutory Income Tax Rate | 21% | |
Deferred Tax Assets | $ 187,000 | $ 181,000 |
Description of net operating loss carryforward expiry year | the Company has net operating loss carry forwards that expire through 2030. | |
Income tax descriptions | the Company has determined that there are no material uncertain tax positions that have a greater than 50% likelihood of reversal if the Company were to be audited. |
NOTES PAYABLE AND NOTE EXCHAN_2
NOTES PAYABLE AND NOTE EXCHANGE AGREEMENT (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 21 Months Ended | |||||||||
Sep. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2019 | Jun. 30, 2022 | Jun. 30, 2019 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2016 | Dec. 31, 2021 | Nov. 30, 2018 | |
Promissory note | $ 160,314 | $ 160,314 | $ 160,314 | |||||||||||
Debt instrument interest rate, stated percentage | 2% | 2% | ||||||||||||
Additional notes payable | $ 14,640 | $ 14,769 | $ 1,526 | $ 11,171 | ||||||||||
Note Payable | $ 322,741 | $ 322,741 | $ 303,941 | |||||||||||
Interest Expense | 1,606 | $ 1,362 | 4,712 | $ 3,892 | ||||||||||
Accrued Interest | 18,465 | $ 18,465 | $ 13,753 | |||||||||||
Common Stock, Convertible, Conversion Price, Decrease | $ 0.0002 | |||||||||||||
Notes payable borrowings | $ 18,800 | 40,438 | ||||||||||||
Proceeds from issuance preferred stock | $ 50,000 | |||||||||||||
Bryan Glass Securities, Inc. [Member] | ||||||||||||||
Promissory note | $ 150,000 | $ 150,000 | ||||||||||||
Debt instrument interest rate, stated percentage | 2% | 2% | ||||||||||||
Notes payable-draw down | $ 6,150 | $ 7,740 | $ 4,910 | $ 62,721 | $ 38,799 | |||||||||
Notes payable borrowings | 120,320 | |||||||||||||
Remaining balance available for advances | 29,679 | |||||||||||||
Proceeds from issuance preferred stock | 50,000 | |||||||||||||
Drawdown amount increased | $ 150,000 | $ 150,000 | ||||||||||||
Minimum [Member] | ||||||||||||||
Common Stock, Convertible, Conversion Price, Decrease | $ 0.0002 | |||||||||||||
Maximum [Member] | ||||||||||||||
Common Stock, Convertible, Conversion Price, Decrease | $ 0.005 |
FIXED ASSETS (Details Narrative
FIXED ASSETS (Details Narrative) - USD ($) | 1 Months Ended | 9 Months Ended | |
Jul. 31, 2016 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Depreciation | $ 2,079 | $ 2,079 | |
Depreciation | $ 0 | $ 207 | |
Computer Equipment [Member] | |||
Depreciation | $ 416 | ||
Payments to Acquire Property, Plant, and Equipment | $ 2,079 | ||
Finite-Lived Intangible Asset, Useful Life | 5 years |