IA Energy 10-K 15 Apr 20 2019 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2019	Jun. 30, 2020	Apr. 14, 2020
Document And Entity Information
Entity Registrant Name	IA Energy Corp.
Entity Central Index Key	0001673431
Document Type	10-K
Document Period End Date	Dec. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity's Reporting Status Current?	Yes
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 Public Float		$ 0
Entity Common Stock, Shares Outstanding			36,503,800
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2019
Entity File Number	333-220706
Is Entity a Well-known Seasoned Issuer?	Yes
Is Entity a Voluntary Filer?	No
Entity Shell Company	false

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 1,128	$ 530
TOTAL CURRENT ASSETS AND TOTAL ASSETS	1,128	530
CURRENT LIABILITIES
Accounts payable, related party	15,000	9,000
Loan payable, related party	96,750	84,000
Total Current Liabilities	111,750	93,000
TOTAL LIABILITIES	111,750	93,000
STOCKHOLDERS' EQUITY
Preferred stock	0	0
Common stock	3,650	3,630
Additional paid-in capital	5,748,250	5,648,270
Dferred stock-based compensation	0	829,167
Accumulated deficit	(5,862,522)	(4,915,203)
Total Stockholders' Equity	(110,622)	(92,470)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 1,128	$ 530

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Dec. 31, 2018
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred Stock, shares issued	0	0
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, shares authorized	500,000,000	500,000,000
Common Stock, shares issued	36,503,800	36,303,800
Common Stock, shares outstanding	36,303,800	36,303,800

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Statement [Abstract]
NET REVENUES	$ 0	$ 0
OPERATING EXPENSES
Consulting and business development	913,167	4,471,433
Professional and accounting fees	26,102	150,771
Other selling, general and administrative	8,050	13,512
Total Operating Expenses	947,319	4,635,716
LOSS FROM OPERATIONS	(947,319)	(4,635,716)
OTHER INCOME (EXPENSES)
NET LOSS	$ (947,319)	$ (4,635,716)
Net loss per common share - basic and diluted	$ (0.03)	$ (0.15)
Weighted average common shar outstanding - basic and diluted	36,472,207	30,014,597

Statements of Stockholders' Equ

Statements of Stockholders' Equity (Deficit) - USD ($)	Common Stock	Additional Paid-In Capital	Deferred Stock-based Compensation	Accumulated Deficit	Total
Beginning balance, shares at Dec. 31, 2017	25,515,000
Beginning balance, value at Dec. 31, 2017	$ 2,552	$ 254,948		$ (279,487)	$ (21,987)
Common stock and warrants issued for cash, shares
Common stock and warrants issued for cash, value
Expense recognition of deferred stock-based compensation
Net loss				$ (18,020)	$ (18,020)
Ending balance, shares at Mar. 31, 2018	25,151,000
Ending balance, value at Mar. 31, 2018	$ 2,552	$ 254,948		$ (297,507)	$ (40,007)
Beginning balance, shares at Dec. 31, 2017	25,515,000
Beginning balance, value at Dec. 31, 2017	$ 2,552	$ 254,948		$ (279,487)	$ (21,987)
Net loss					$ (4,635,716)
Ending balance, shares at Dec. 31, 2018	36,303,800
Ending balance, value at Dec. 31, 2018	$ 3,630	$ 5,648,270	$ (829,167)	$ (4,915,203)	$ (92,470)
Beginning balance, shares at Mar. 31, 2018	25,151,000
Beginning balance, value at Mar. 31, 2018	$ 2,552	$ 254,948		$ (297,507)	$ (40,007)
Common stock and warrants issued for cash, shares
Common stock and warrants issued for cash, value
Expense recognition of deferred stock-based compensation
Net loss				$ (29,089)	$ (29,089)
Ending balance, shares at Jun. 30, 2018	25,515,000
Ending balance, value at Jun. 30, 2018	$ 2,552	$ 254,948		$ (326,596)	$ (69,096)
Common stock and warrants issued for cash, shares	63,800
Common stock and warrants issued for cash, value	$ 6	$ 31,894	$ (5,362,500)
Expense recognition of deferred stock-based compensation			1,958,334
Net loss				$ (1,988,589)	$ (1,988,589)
Ending balance, shares at Sep. 30, 2018	36,303,800
Ending balance, value at Sep. 30, 2018	$ 3,630	$ 5,648,270	$ (3,404,166)	$ (2,315,185)	$ (67,451)
Common stock and warrants issued for cash, shares
Common stock and warrants issued for cash, value
Expense recognition of deferred stock-based compensation			2,574,999		2,574,999
Net loss				$ (2,600,018)	$ (2,600,018)
Ending balance, shares at Dec. 31, 2018	36,303,800
Ending balance, value at Dec. 31, 2018	$ 3,630	$ 5,648,270	$ (829,167)	$ (4,915,203)	$ (92,470)
Common stock and warrants issued for cash, shares	200,000
Common stock and warrants issued for cash, value	$ 20	$ 99,980			$ 100,000
Expense recognition of deferred stock-based compensation			829,167		829,167
Net loss				$ (876,661)	$ (876,661)
Ending balance, shares at Mar. 31, 2019	36,503,800
Ending balance, value at Mar. 31, 2019	$ 3,650	$ 5,748,250		$ (5,791,864)	$ (39,964)
Beginning balance, shares at Dec. 31, 2018	36,303,800
Beginning balance, value at Dec. 31, 2018	$ 3,630	$ 5,648,270	$ (829,167)	$ (4,915,203)	$ (92,470)
Net loss					$ (947,319)
Ending balance, shares at Dec. 31, 2019	36,503,800
Ending balance, value at Dec. 31, 2019	$ 3,650	$ 5,748,250		$ (5,862,522)	$ (110,622)
Beginning balance, shares at Mar. 31, 2019	36,503,800
Beginning balance, value at Mar. 31, 2019	$ 3,650	$ 5,748,250		$ (5,791,864)	$ (39,964)
Common stock and warrants issued for cash, shares
Common stock and warrants issued for cash, value
Expense recognition of deferred stock-based compensation
Net loss				(30,875)	(30,875)
Ending balance, shares at Jun. 30, 2019	36,503,800
Ending balance, value at Jun. 30, 2019	$ 3,650	$ 5,748,250		$ (5,822,739)	$ (70,839)
Common stock and warrants issued for cash, shares
Common stock and warrants issued for cash, value
Expense recognition of deferred stock-based compensation
Net loss				$ (24,712)	$ (24,712)
Ending balance, shares at Sep. 30, 2019	36,503,800
Ending balance, value at Sep. 30, 2019	$ 3,650	$ 5,748,250		$ (5,862,522)	$ (110,622)
Common stock and warrants issued for cash, shares
Common stock and warrants issued for cash, value
Expense recognition of deferred stock-based compensation
Net loss
Ending balance, shares at Dec. 31, 2019	36,503,800
Ending balance, value at Dec. 31, 2019	$ 3,650	$ 5,748,250		$ (5,862,522)	$ (110,622)

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (947,319)	$ (4,635,716)
Changes in operating assets and liabilities:
Stock-based compensation	829,167	4,533,333
Accounts payable, third parties	0	(5,000)
Accounts payable, related party	6,000	6,000
Net Cash Used by Operating Activities	(112,152)	(101,383)
CASH FLOWS FROM INVESTING ACTIVITIES	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock	100,000	31,900
Proceeds from related party loans	66,750	63,500
Payments on related party loans	(54,000)	0
Net Cash Provided by Financing Activities	112,750	95,400
NET INCREASE (DECREASE) IN CASH A CASH EQUIVALENTS	598	(5,983)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	530	6,513
CASH AND CASH EQUIVALENTS, END OF PERIOD	1,128	530
Cash Payments For:
Interest	0	0
Taxes	$ 0	$ 0

NOTE 1 - ORGANIZATION AND DESCR

NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS	NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS IA Energy Corp. (the Company) was incorporated in the State of Wyoming on January 6, 2016. Our operations to date have been devoted primarily to start-up and development activities, which include: (i) formation of the Company; (ii) development of our business plan; (iii) development of our proprietary waste-to-energy technology; and (iv) marketing of our proprietary waste-to-energy technology. We have not completed development of our proprietary waste-to-energy technology and there is no assurance that we will be successful in completing the development.

NOTE 2 - SIGNIFICANT ACCOUNTING

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements and notes are representations of the Company’s management who are responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements. The following policies are considered to be significant: a. Accounting Method The Company recognizes income and expenses based on the accrual method of accounting. The Company has elected a calendar year-end. b. Cash and Cash Equivalents Cash equivalents are generally comprised of certain highly liquid investments with original maturities of less than three months. c Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. d. Revenue Recognition Revenue will be recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) the price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery of products or services has occurred. To date, the Company has not recognized any revenues. e. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to reverse. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that all or some portion of such deferred tax assets will not be realized. A full allowance against deferred tax assets was provided as of December 31, 2019 and 2018. At December 31, 2019, the Company had net operating loss carryforwards of approximately $500,000 which may be offset against future taxable income. Approximately $280,000 expires in 2036 and 2037 and approximately $220,000 does not expire. No tax benefit has been reported in the financial statements because the potential tax benefits of the net operating loss carryforwards are offset by a valuation allowance of the same amount. NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (continued) Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations when substantial changes in ownership occur. f. Basic and Diluted Net Loss per Share of Common Stock Basic net loss per common share is based on the weighted average number of shares outstanding during the periods presented. Diluted earnings per share is computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. For the periods presented, the issued and outstanding warrants (See Note 3) were excluded from the calculation of diluted shares outstanding as the effect of their inclusion would be anti-dilutive. g. Recent Accounting Pronouncements Certain accounting pronouncements have been issued by the FASB and other standard setting organizations which are not yet effective and have not yet been adopted by the Company. The impact on the Company’s financial position and results of operations from adoption of these standards is not expected to be material.

NOTE 3 - EQUITY TRANSACTIONS

NOTE 3 - EQUITY TRANSACTIONS	12 Months Ended
	Dec. 31, 2019
Notes to Financial Statements
NOTE 3 - EQUITY TRANSACTIONS	NOTE 3 - EQUITY TRANSACTIONS The Company has 500,000,000 shares of common stock authorized with a par value of $0.0001. 25,000,000 shares of common stock were issued to the founder of the Company on incorporation. During the year ended December 31, 2018, the Company sold a total of 63,800 shares of its common stock (and 63,800 Warrants) to investors at a price of $0.50 per share or $31,900 total. On August 1, 2018, the Company issued a total of 10,475,000 shares of its common stock to one consulting firm entity and nine individuals for consulting services to be rendered to the Company pursuant to Consulting Agreements dated August 1, 2018 for terms ranging from 3 to 6 months. The shares were valued at $0.50 per share or $5,237,500 total which were being expensed as consulting and business development expenses on the statement of operations over the terms of the respective Consulting Agreements. $4,408,333 (of the $5,237,500 total) has been expensed in the year ended December 31, 2018, and $829,167 (of the $5,237,500 total) has been expensed in the year ended December 31, 2019. On August 1, 2018, the Company issued a total of 250,000 shares of its common stock for legal services rendered to the Company. The shares were valued at $0.50 per share or $125,000 total which is included in professional and accounting fees on the statement of operations for the year ended December 31, 2018. On March 12, 2019, the Company sold 200,000 shares of its common stock (and 200,000 Warrants) to an investor at a price of $0.50 per share or $100,000 total. Warrants A summary of Warrants activity for the years ended December 31, 2018 and 2019 follows: Balance, January 1, 2018 150,000 Issued in 2018 63,800 Balance, December 31, 2018 213,800 Issued in 2019 200,000 Expired in 2019 (150,000) Balance, December 31, 2019 263,800 Each Warrant is exercisable into shares of our common stock at an exercise price of $1.00 per share and expires two years from the date of its issuance.

NOTE 4 - FINANCIAL INSTRUMENTS

NOTE 4 - FINANCIAL INSTRUMENTS	12 Months Ended
	Dec. 31, 2019
Investments, All Other Investments [Abstract]
NOTE 4 - FINANCIAL INSTRUMENTS	NOTE 4 - FINANCIAL INSTRUMENTS Our financial instruments consist of cash and cash equivalents, accounts payable and loans payable. The carrying amount of these assets and liabilities approximate fair value due to their short-term nature.

NOTE 5 - GOING CONCERN

NOTE 5 - GOING CONCERN	12 Months Ended
	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
NOTE 5 - GOING CONCERN	NOTE 5 - GOING CONCERN The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company has sustained significant net losses which have resulted in an accumulated deficit at December 31, 2019 of $5,862,522 and has experienced periodic cash flow difficulties, all of which raise substantial doubt regarding the Company’s ability to continue as a going concern. Continuation of the Company as a going concern is dependent upon obtaining additional working capital. The management of the Company has developed a strategy which it believes will accomplish this objective through short term loans from related parties and additional equity investments which will enable the Company to continue operations for the coming year. However, there is no assurance that these objectives will be met. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might result from the outcome of this uncertainty.

NOTE 6 - RELATED PARTY TRANSACT

NOTE 6 - RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2019
Related Party Transactions [Abstract]
NOTE 6 - RELATED PARTY TRANSACTIONS.	NOTE 6 - RELATED PARTY TRANSACTIONS Loans Payable, Related Party The Company periodically receives advances from a corporation controlled by John Munoz, beneficial owner of 25,000,000 shares of our common stock and Chief Executive Officer of the Company from inception on January 6, 2016 to July 25, 2017. These loans are non-interest bearing and due on demand. During the year ended December 31, 2019, the Company received additional loans of $66,750 and paid $54,000 as a repayment on the loans. The amount of loans payable to this corporation as of December 31, 2019 and 2018 was $96,750 and $84,000, respectively. Sublease Agreements On July 1, 2017, the Company entered into a Sublease Agreement with another corporation controlled by John Munoz. The Sublease Agreement provided for the Company’s use of office space in Harbor City, California at a Monthly Base Rent of $500 per month. The term of the Sublease commenced on July 1, 2017 and ended October 31, 2019. Effective November 1, 2019, the Company entered into a Sublease Agreement with the related party described in the first paragraph of Note 6 for the Company’s use of office space in Long Beach, California at a Monthly Base Rent of $500 per month. The Sublease is month to month and terminable by either party upon 30 days written notice. For the years ended December 31, 2019 and 2018, the Company recorded $6,000 and $6,000, respectively, in rent expense which is included in other selling, general and administrative expenses.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2019
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 7 - SUBSEQUENT EVENTS On January 8, 2020, the Company issued 100,000 restricted shares of Common Stock to a third party service provider in consideration of services provided to the Company valued at $10,000. With respect to the transaction, no solicitation was made and no underwriting discounts were given or paid. The Company believes that the issuance of the shares was exempt from registration provided by Section 4(a)(2) of the Securities Act of 1933. For the three months ended March 31, 2020, the Company received additional loans of $35,500 from the related party described in the first paragraph of Note 6. The loans are non-interest bearing and due on demand.

NOTE 2 - SIGNIFICANT ACCOUNTI_2

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2019
Accounting Policies [Abstract]
Accounting Method	a. Accounting Method The Company recognizes income and expenses based on the accrual method of accounting. The Company has elected a calendar year-end.
Cash and Cash Equivalents	b. Cash and Cash Equivalents Cash equivalents are generally comprised of certain highly liquid investments with original maturities of less than three months.
Use of Estimates in the Preparation of Financial Statements	c Use of Estimates in the Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition	d. Revenue Recognition Revenue will be recognized when all of the following criteria are met: (1) persuasive evidence of an arrangement exists, (2) the price is fixed or determinable, (3) collectability is reasonably assured, and (4) delivery of products or services has occurred. To date, the Company has not recognized any revenues.
Income Taxes	e. Income Taxes The Company accounts for income taxes using the asset and liability method. Under this method, deferred income taxes are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which differences are expected to reverse. A valuation allowance is established to reduce deferred tax assets if it is more likely than not that all or some portion of such deferred tax assets will not be realized. A full allowance against deferred tax assets was provided as of December 31, 2019 and 2018. At December 31, 2019, the Company had net operating loss carryforwards of approximately $500,000 which may be offset against future taxable income. Approximately $280,000 expires in 2036 and 2037 and approximately $220,000 does not expire. No tax benefit has been reported in the financial statements because the potential tax benefits of the net operating loss carryforwards are offset by a valuation allowance of the same amount. Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations when substantial changes in ownership occur.
Basic and Diluted Net Loss per Share of Common Stock	f. Basic and Diluted Net Loss per Share of Common Stock Basic net loss per common share is based on the weighted average number of shares outstanding during the periods presented. Diluted earnings per share is computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. For the periods presented, the issued and outstanding warrants (See Note 3) were excluded from the calculation of diluted shares outstanding as the effect of their inclusion would be anti-dilutive.
Recent Accounting Pronouncements	g. Recent Accounting Pronouncements Certain accounting pronouncements have been issued by the FASB and other standard setting organizations which are not yet effective and have not yet been adopted by the Company. The impact on the Company’s financial position and results of operations from adoption of these standards is not expected to be material.

NOTE 2 - SIGNIFICANT ACCOUNTI_3

NOTE 2 - SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	Dec. 31, 2019USD ($)
Accounting Policies [Abstract]
Net operating loss carryforwards	$ 500,000

NOTE 3 - EQUITY TRANSACTIONS (D

NOTE 3 - EQUITY TRANSACTIONS (Details Narrative) - $ / shares	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2019	Dec. 31, 2018
Stock authorized		500,000,000	500,000,000
Common stock issued, par value		$ 0.0001	$ 0.0001
Company stock
Stock authorized	500,000,000
Common stock issued, par value	$ 0.0001
Stock issued to the founder
Common stock issued, shares	25,000,000
Stock sold to investors January 6, 2016 to December 31, 2016
Common stock issued, per share price	$ 0.50
Common stock sold	365,000
Warrants outstanding	365,000
Stock sold to investors during the year ended December 31, 2017
Common stock issued, per share price	$ 0.50
Common stock sold	150,000
Warrants outstanding	150,000
Warrants
Warrants exercise price	$ 1
Warrants outstanding	515,000

NOTE 5 - GOING CONCERN (Details

NOTE 5 - GOING CONCERN (Details Narrative)	Dec. 31, 2019USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 5,862,522

NOTE 6 - RELATED PARTY TRANSA_2

NOTE 6 - RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Nov. 01, 2019
Consulting firm corporations
Loans payable	$ 96,750	$ 84,000
Sublease Agreement
Monthly base rent			$ 500
Rent expense	$ 6,000	$ 6,000