Strategic Internet Investments (SIII) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document And Entity Information
Entity Registrant Name	STRATEGIC INTERNET INVESTMENTS INC
Entity Central Index Key	53,320
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
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		40,359,391
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets
Cash	$ 381	$ 375
TOTAL ASSETS	381	375
Current:
Accounts payable	135,183	97,987
Accounts payable - related parties	71,737	23,738
Accrued interest	19,695	16,363
Accrued interest - related parties	665,644	613,205
Convertible loan payable	50,000	50,000
Loans payable - related parties	408,866	385,906
Convertible notes payable - related party	418,975	418,975
TOTAL LIABILITIES	1,770,100
Stockholders' deficit:
Common stock, $0.001 par value 100,000,000 authorized 40,359,391 (2015: 40,359,391) issued and outstanding	40,359	40,359
Additional paid-in capital	12,156,359	12,156,359
Accumulated deficit	(13,966,635)	(13,802,715)
TOTAL STOCKHOLDERS' DEFICIT	(1,769,719)	(1,605,799)
TOTAL STOCKHOLDERS' DEFICIT AND LIABILITIES	381	375
Class A Convertible Preferred
Current:
Preferred Stock	198	198
Class B Preferred
Current:
Preferred Stock

Balance Sheets (Unaudited) (Par

Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Common Stock, Par Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	40,359,391	40,359,391
Common Stock, Shares Outstanding	40,359,391	40,359,391
Class A Convertible Preferred
Preferred Stock, Par Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	198,000	198,000
Preferred Stock, Shares Outstanding	198,000	198,000
Class B Preferred
Preferred Stock, Par Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0

Statements Of Operations (Unaud

Statements Of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
General and Administrative Expenses
Accounting and audit fees	$ 10,933	$ 5,671	$ 18,708	$ 25,569
Legal fees	36,306	197	36,306	473
Management fees	46,000	1,000	48,000	2,000
Office and general	176	43	236	200
Regulatory fees	3,770	1,732	4,321	4,461
Transfer agent fees	600	375	1,200	750
Operating loss	(97,785)	(9,018)	(108,771)	(33,453)
Other income and expense
Interest expense	(28,380)	(25,697)	(55,770)	(50,765)
Gain (loss) on foreign exchange	2,023	(605)	621	(3,186)
Net loss	$ (124,142)	$ (35,320)	$ (163,920)	$ (87,404)
Basic and diluted loss per share	$ .00	$ .00	$ 0	$ 0
Weighted average number of common shares outstanding	40,359,391	40,359,391	40,359,391	40,359,391

Statements Of Cash Flows (Unaud

Statements Of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Operating Activities
Net loss	$ (163,821)	$ (87,404)
Adjustments to reconcile net loss to net cash used in operating activities:
Unrealized foreign exchange (gain) loss	(1,668)	1,303
Changes in operating assets and liabilities:
Accounts payable	37,196	19,274
Accounts payable - related parties	47,999	2,010
Accrued interest	3,332	3,034
Accrued interest - related parties	52,493	47,731
Net cash used in operating activities	(24,622)	(14,052)
Financing Activities
Proceeds from related party advances	24,628
Net cash provided by financing activities	24,628
Change in cash during the period	6	(14,052)
Cash, beginning of the period	375	14,630
Cash, end of the period	381	578
Supplementary disclosure of cash flows:
Expenses paid by related party on behalf of the company		5,300
Cash paid for Interest
Cash paid for Taxes

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
Basis of Presentation	1. Basis of Presentation The accompanying unaudited financial statements have been prepared by the Company pursuant to the rules and regulations of the United States Securities and Exchange Commission. Certain information and disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, all adjustments and disclosures necessary for a fair presentation of these financial statements have been included. Such adjustments consist of normal recurring adjustments. These interim financial statements should be read in conjunction with the annual audited financial statements of the Company for the fiscal year ended December 31, 2016 included in the Company’s 10-K Annual Report as filed with the United States Securities and Exchange Commission. The results of operations for the period ended June 30, 2017 are not indicative of the results that may be expected for the full year.

Going Concern

Going Concern	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Going Concern	2. Going Concern These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At June 30, 2017, the Company had not yet achieved profitable operations, has an accumulated deficit of $13,966,635 since its inception, has a working capital deficiency of $1,769,719 and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern. Management anticipates that it requires approximately $93,000 over the twelve months ended June 30, 2018 to continue operations as well as the Company estimates it will accrue related interest expenses of $108,000 over the next 12 months on loans due to related parties. In addition to funding the Company’s general, administrative and corporate expenses the Company is obligated to address its current obligations totalling $1,770,100. To the extent that cash needs are not achieved from operating cash flow and existing cash on hand, the Company will be required to raise necessary cash through shareholder loans, equity issuances and/or other debt financing. Amounts raised will be used to continue the development of the Company's investment activities, and for other working capital purposes. 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. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances; however there is no assurance of additional funding being available. The Company has historically satisfied its capital needs primarily by issuing equity securities. Management plans to continue to provide for its capital needs during the twelve months ended June 30, 2018, by issuing equity securities and/or related party advances.

Convertible Loan Payable

Convertible Loan Payable	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Convertible Loan Payable	3. Convertible Loan Payable On January 5, 2014 Company entered into a Convertible Loan Agreement and issued a convertible note for $50,000. This loan is unsecured, bearing interest at 10% per annum, and was repayable at maturity on January 7, 2015, or on demand after that date. At any time, the lender may convert the principle amount of the loan into units of the Company, each unit consisting of one common share and one non-transferable share purchase warrant, at a conversion rate of $0.20 per unit. Each share purchase warrant entitles the holder to purchase one additional common share for a period of two years from the warrant issue date, at an exercise price of $0.20 during the first year, and $0.35 during the second year. Accrued in interest on the note at June 30, 2017 was $19,695 (December 31, 2016: $16,363). The Company calculated a beneficial conversion feature on the convertible note of $22,826, and this amount was fully amortized to interest expense during the year ended December 31, 2014. Upon conversion of this loan, which triggers the issuance of the warrants, the $42,000 fair value of the warrants will be recognized as an interest expense and credited to additional paid-in capital. The fair value of the warrants was estimated at the date the convertible note was issued using the Black-Scholes valuation model. The Black-Scholes valuation model requires the input of highly subjective assumptions including the expected price volatility.

Loans payable - related parties

Loans payable - related parties	6 Months Ended
	Jun. 30, 2017
Brokers and Dealers [Abstract]
Loans payable - related parties	4. Loans payable – related parties June 30, December 31, 2017 2016 a) Loan payable to a company controlled by a director of the Company plus accrued interest of $22,136 (2016 - $20,488). The loan is unsecured, bearing interest at 12% per annum and is repayable on demand. $ 6,802 $ 6,802 b) Loans payable to a company controlled by a director of the Company. The loans are unsecured, non-interest bearing, and repayable upon demand. 326,075 325,521 c) Loans payable to a company controlled by a former director of the Company. The loans are unsecured, non-interest bearing, and repayable upon demand. 7,477 7,295 d) Loans payable to a director of the Company. The loans are unsecured, non-interest bearing, and repayable upon demand. 68,512 46,288 Total Loans Payable – related parties $ 408,866 $ 385,906

Convertible Loans Payable - rel

Convertible Loans Payable - related parties	6 Months Ended
	Jun. 30, 2017
Summary of Investments, Other than Investments in Related Parties [Abstract]
Convertible Loans Payable - related parties	5. Convertible Loans Payable – related parties June 30, December 31, 2017 2016 a) Loan payable to a company controlled by a former director of the Company, plus accrued interest payable of $256,683 (2016 - $236,584), pursuant to a Convertible Loan Agreement. The loan is unsecured, bearing interest at 10% per annum and is repayable on demand. The lender may at any time convert the principal sum into units of the Company. Each unit will consist of one common share plus one common share purchase warrant. Each warrant is exercisable for a period of 2 years from the date of conversion at a price ranging from $0.05 to $0.23. The principal sum of $163,766 may be converted into 2,320,858 units. Upon conversion of this loan, the $73,685 fair value of the warrants, as measured at inception, will be recognized as an interest expense and credited to additional paid-in capital. $ 163,766 $ 163,766 b) Loan payable to a company controlled by a director of the Company, plus accrued interest of $386,825 (2016 - $356,133), pursuant to a Convertible Loan Agreement. The loan is unsecured, bearing interest at 10% per annum and is repayable on demand. The lender may at any time convert the principal sum into units of the Company. Each unit will consist of one common share plus one common share purchase warrant. Each warrant is exercisable for a period of 2 years from the date of conversion at a price ranging from $0.05 to $0.12. The principal sum of $255,209 may be converted into 4,526,436 units. Upon conversion of this loan, the $113,338 fair value of the warrants, as measured at inception, will be recognized as an interest expense and credited to additional paid-in capital. 255,209 255,209 Total Convertible Notes Payable – related parties $ 418,975 $ 418,975

Equity

Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Equity	6. Equity During the six months ended June 30, 2017, and the year ended December 31, 2016, the Company did not issue any common shares.

Stock-based Compensation

Stock-based Compensation	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Stock-based Compensation	7. Stock-based Compensation Stock Option Plan The Company’s board of directors approved a stock option plan. Under the plan directors, employees and consultants may be granted options to purchase common stock of the Company at a price of not less than 100% of the fair market value of the stock. The total number of options granted must not exceed 15% of the outstanding common stock of the Company. The plan expired on July 1, 2017. No options were granted and no compensation expense was recorded during the periods ended June 30, 2017 and 2016. The fair value of each option grant was estimated on the date of the grant using the Black-Scholes option valuation model. The Black-Scholes option valuation model requires the input of highly subjective assumptions including the expected price volatility. Changes in the subjective input assumptions can materially affect the fair value estimate and therefore the Black-Scholes model does not necessarily provide a reliable single measure of the fair value of the Company’s share purchase options. As at June 30, 2017, the Company had share purchase options outstanding as follows: Expiry Date Exercise Price Remaining Contractual Life Number of Options October 15, 2017 $0.10 0.29 years 1,200,000 January 16, 2018 $0.12 0.55 years 2,940,000 Total options outstanding 0.47 years 4,140,000 At June 30, 2017, all the outstanding share purchase options were exercisable.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2017
Related Party Transactions [Abstract]
Related Party Transactions	8. Related Party Transactions At June 30, 2017, accounts payable includes $71,737 due to a director, to a former director, and a company controlled by a director of the Company, in respect of unpaid management fees, expenses incurred on behalf of the Company, and operating costs paid on behalf of the Company. At June 30, 2017, accrued interest includes $665,644 due to companies controlled by a director and a former director of the Company. During the period ended June 30, 2017, the Company paid or accrued management fees of $48,000 to two directors.

Commitments

Commitments	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments	9. Commitments Skytower: On August 9, 2016, SIII entered into a Securities Purchase Agreement (the “Kayu Agreement”) to acquire 60% of the issued capital stock Kayu Tekstil Sanayi Ve Ticaret Limited Sirketi (“Kayu”), a Turkish company, from Najibi Investment Trading FZC (hereinafter “Najibi”), G7 Entertainment Incorporated, (hereinafter “G7”), Royaltun General Trading LLC., (hereinafter “Royaltun”), and Soha Investment Inc., (hereinafter “Soha) (jointly hereinafter the “Shareholders”). In consideration for the Kayu shares, the Company agreed to issue convertible debentures in the amount of $30,205,939 to the Shareholders of Kayu. This is a related party transaction as Mr. Abbas Salih is a Director and Officer, as well as the controlling shareholder, of SIII and has an ownership interest in and/or control of the Shareholders. Kayu has an agreement to acquire the Skytower Hotel Atayol in Akcakoca, Turkey (the “Skytower Property”), subject to the successful discharge of a debt on the Skytower Property and the transfer of title to Kayu. Upon discharge of the debt on the Skytower Property, the Company will issue convertible debentures in the amount of $12,656,768 to Najibi, a Company that settled the existing debt on the Skytower Property. Upon transfer of the Skytower Property title to Kayu, the Company will issue convertible debentures in the amount of $20,137,293 to a shareholder of Kayu to acquire the remaining 40% of the capital stock of Kayu. Upon completion of these transactions, SIII will own 100% of Kayu. The Company has the right to terminate the agreements to acquire the issued capital stock of Kayu and cancel the associated convertible debentures if the vendors do not complete certain closing conditions. As of the filing date, the closing conditions in the Kayu agreement have not yet been met, and the convertible debentures have not been issued to the Shareholders. Marriott: In August 2016, the Company entered into agreements to acquire 50% of the issued capital stock of Par-San Turizm A.S. (“Par-San”), a Turkish company that is the owner of a Marriott Renaissance Hotel in Izmir, Turkey (the “Marriott”). In consideration for the Par-San shares, the Company agreed to issue convertible debentures in the amount of $44,365,532 to Najibi Investment Trading FZC, G7 Entertainment Incorporated, SOHA Investment & Partners, and Royaltun General Trading L.L.C. (collectively “Shareholders”), the shareholders of Par-San. On October 14, 2016, the Company and the Shareholders mutually agreed to terminate their agreements and cancel the associated convertible debentures. At the same time, the Company and the Shareholders entered into new agreements to acquire 50% of the issued capital stock of Par-San. In consideration for the Par-San shares, the Company agreed to issue convertible debentures in the amount of $47,400,000 to the Shareholders. This is a related party transaction as Mr. Abbas Salih is a Director and Officer, as well as the controlling shareholder, of SIII and has an ownership interest in and/or control of the Shareholders. The closing of the new agreement is subject to certain conditions, which have not yet been met. The Company has the right to terminate the new agreements and cancel the associated debentures if the closing conditions are not met in a reasonable amount of time. All of the above mentioned convertible debentures have the following terms: a) Non-interest bearing. b) Mature on December 31, 2021 (the “Maturity Date”). c) At any time prior to the Maturity Date, the convertible debenture holder may convert the debenture into common stock of the Company at a price of $1.00 per share. d) The convertible debenture will automatically convert into common stock upon the closing price of the Company’s common stock closing above $1.00 per share for 20 consecutive trading days. The Company has not yet determined the accounting treatment for the above mentioned series of transactions.

Subsequent Event

Subsequent Event	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Event	10. Subsequent Events Subsequent to June 30, 2017: a) The Company was advanced $3,564 by a director to pay certain service providers. The advance is unsecured, non-interest bearing and repayable on demand. b) The Company agreed to issue 1,680,000 restricted common shares at $0.05 per share, for a total consideration of $84,000, as partial settlement of debts due to a director of the Company, in respect of unpaid management fees payable totaling $45,000, plus $39,000 of loans payable. These shares have not yet been issued.

Loans payable - related parti16

Loans payable - related parties (tables)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Loans payable - related parties	4. Loans payable – related parties June 30, December 31, 2017 2016 a) Loan payable to a company controlled by a director of the Company plus accrued interest of $22,136 (2016 - $20,488). The loan is unsecured, bearing interest at 12% per annum and is repayable on demand. $ 6,802 $ 6,802 b) Loans payable to a company controlled by a director of the Company. The loans are unsecured, non-interest bearing, and repayable upon demand. 326,075 325,521 c) Loans payable to a company controlled by a former director of the Company. The loans are unsecured, non-interest bearing, and repayable upon demand. 7,477 7,295 d) Loans payable to a director of the Company. The loans are unsecured, non-interest bearing, and repayable upon demand. 68,512 46,288 Total Loans Payable – related parties $ 408,866 $ 385,906

Convertible Loans Payable - r17

Convertible Loans Payable - related parties (tables)	6 Months Ended
	Jun. 30, 2017
Notes to Financial Statements
Convertible Loans Payable - related parties (tables)	5. Convertible Loans Payable – related parties June 30, December 31, 2017 2016 a) Loan payable to a company controlled by a former director of the Company, plus accrued interest payable of $256,683 (2016 - $236,584), pursuant to a Convertible Loan Agreement. The loan is unsecured, bearing interest at 10% per annum and is repayable on demand. The lender may at any time convert the principal sum into units of the Company. Each unit will consist of one common share plus one common share purchase warrant. Each warrant is exercisable for a period of 2 years from the date of conversion at a price ranging from $0.05 to $0.23. The principal sum of $163,766 may be converted into 2,320,858 units. Upon conversion of this loan, the $73,685 fair value of the warrants, as measured at inception, will be recognized as an interest expense and credited to additional paid-in capital. $ 163,766 $ 163,766 b) Loan payable to a company controlled by a director of the Company, plus accrued interest of $386,825 (2016 - $356,133), pursuant to a Convertible Loan Agreement. The loan is unsecured, bearing interest at 10% per annum and is repayable on demand. The lender may at any time convert the principal sum into units of the Company. Each unit will consist of one common share plus one common share purchase warrant. Each warrant is exercisable for a period of 2 years from the date of conversion at a price ranging from $0.05 to $0.12. The principal sum of $255,209 may be converted into 4,526,436 units. Upon conversion of this loan, the $113,338 fair value of the warrants, as measured at inception, will be recognized as an interest expense and credited to additional paid-in capital. 255,209 255,209 Total Convertible Notes Payable – related parties $ 418,975 $ 418,975

Stock-based Compensation (table

Stock-based Compensation (tables)	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation (tables)	As at June 30, 2017, the Company had share purchase options outstanding as follows: Expiry Date Exercise Price Remaining Contractual Life Number of Options October 15, 2017 $0.10 0.29 years 1,200,000 January 16, 2018 $0.12 0.55 years 2,940,000 Total options outstanding 0.47 years 4,140,000

Going Concern (Details Narrativ

Going Concern (Details Narrative) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated Deficit	$ 13,966,635	$ 13,802,715
Working Capital Deficiency	1,769,719	$ 1,605,799
Funds Needed, over next 12 months	93,000
Current Obligations	$ 1,770,100

Convertible Loan Payable (Detai

Convertible Loan Payable (Detail) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Debt Disclosure [Abstract]
Convertible note payable	$ 50,000	$ 50,000

Loans payable (Details)

Loans payable (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Loans Payable Details
Loan payable to a company controlled by a director of the Company plus accrued interest of $19,686 (2015 - $17,437). The loan is unsecured, bearing interest at 12% per annum and is repayable on demand.	$ 6,802	$ 6,802
Loans payable to a company controlled by a director of the Company. The loans are unsecured, non-interest bearing, and repayable upon demand.	326,075	325,521
Loans payable to a company controlled by a former director of the Company. The loans are unsecured, non-interest bearing, and repayable upon demand.	7,477	7,295
Loans payable to a director of the Company. The loans are unsecured, non-interest bearing, and repayable upon demand.	68,512	46,288
Total Loans Payable - related parties	$ 408,866	$ 385,906

Convertible Loans Payable - r22

Convertible Loans Payable - related parties (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Convertible Loans Payable - Related Parties Details
Loan payable to a company controlled by a former director of the Company, plus accrued interest payable of $226,741 (2015 - $198,835), pursuant to a Convertible Loan Agreement. The loan is unsecured, bearing interest at 10% per annum and is repayable on demand. The lender may at anytime convert the principal sum into units of the Company. Each unit will consist of one common share plus one common share purchase warrant	$ 163,766	$ 163,766
Loan payable to a company controlled by a director of the Company, plus accrued interest of $341,103 (2015 - $298,488), pursuant to a Convertible Loan Agreement. The loan is unsecured, bearing interest at 10% per annum and is repayable on demand. The lender may at anytime convert the principal sum into units of the Company. Each unit will consist of one common share plus one common share purchase warrant.	255,209	255,209
Total Convertible Notes Payable - related parties	$ 418,975	$ 418,975

Related Party Transactions (Det

Related Party Transactions (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Related Party Transactions [Abstract]
Accounts Payable	$ 71,737		$ 71,737
Accrued Interest	665,644		665,644		$ 613,205
Management fees	$ 46,000	$ 1,000	$ 48,000	$ 2,000