DarkPulse (DPLS) 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 16, 2016
Due from related party, payable in common stock
Entity Registrant Name	KLEVER MARKETING INC
Entity Central Index Key	866,439
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		58,240,446
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2,016

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash	$ 25,563	$ 31,782
Total Current Assets	25,563	31,782
Fixed assets, net	35	96
Other assets - intangibles, net	621,541	614,598
Total Assets	647,139	646,476
CURRENT LIABILITIES
Accounts payable	363,797	346,303
Accrued liabilities	409,213	370,552
Accrued preferred stock dividends	48,009	72,399
Related party notes payable	25,500	25,500
Total Current Liabilities	846,519	814,754
Total Liabilities	846,519	814,754
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock (par value $0.01), 250,000,000 shares authorized, 57,740,446 and 57,240,446 shares issued at March 31, 2016 and December 31, 2015, respectively	577,404	572,404
Treasury stock, 100,000 shares at March 31, 2016 and December 31, 2015	(1,000)	(1,000)
Paid in capital in excess of par value	18,284,862	18,240,653
Accumulated deficit	(19,065,099)	(18,984,607)
Total Stockholders' Deficit	(199,380)	(168,278)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	647,139	646,476
Preferred Class A [Member]
STOCKHOLDERS' EQUITY (DEFICIT)
Convertible preferred stock	1,441	1,382
Preferred Class B [Member]
STOCKHOLDERS' EQUITY (DEFICIT)
Convertible preferred stock	1,092	1,048
Preferred Class C [Member]
STOCKHOLDERS' EQUITY (DEFICIT)
Convertible preferred stock	$ 1,920	$ 1,842

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Convertible preferred stock - par value	$ .01
Convertible preferred stock - shares authorized	2,000,000
Convertible preferred stock - shares issued	445,323	427,168
Convertible preferred stock - shares outstanding	445,323	427,168
Common stock par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000
Common stock, shares issued	57,740,446	57,240,446
Common stock, shares outstanding	57,740,446	57,240,446
Treasury stock shares	100,000	100,000
Preferred Class A [Member]
Convertible preferred stock - par value	$ 0.01	$ 0.01
Convertible preferred stock - shares authorized	150,000	150,000
Convertible preferred stock - shares issued	144,091	138,217
Convertible preferred stock - shares outstanding	144,091	138,217
Convertible preferred stock - liquidation preference (in Dollars)	$ 3,772,546
Preferred Class B [Member]
Convertible preferred stock - par value	$ 0.01	$ 0.01
Convertible preferred stock - shares authorized	125,000	125,000
Convertible preferred stock - shares issued	109,209	104,757
Convertible preferred stock - shares outstanding	109,209	104,757
Convertible preferred stock - liquidation preference (in Dollars)	$ 1,869,526
Preferred Class C [Member]
Convertible preferred stock - par value	$ 0.01	$ 0.01
Convertible preferred stock - shares authorized	200,000	200,000
Convertible preferred stock - shares issued	192,023	184,194
Convertible preferred stock - shares outstanding	192,023	184,194
Convertible preferred stock - liquidation preference (in Dollars)	$ 1,276,208

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement [Abstract]
Revenues	$ 0	$ 0
OPERATING EXPENSES
General and administrative	79,565	86,863
Research and development	313	1,606
Total Operating Expenses	79,878	88,469
LOSS FROM OPERATIONS	(79,878)	(88,469)
OTHER INCOME (EXPENSE)
Interest expense	(319)	0
Total Other Income (Expense)	(319)	0
LOSS BEFORE INCOME TAXES	(80,197)	(88,469)
INCOME TAXES	(295)	(287)
NET LOSS	$ (80,492)	$ (88,756)
LOSS PER COMMON SHARE - BASIC AND DILUTED	$ 0	$ 0
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC AND DILUTED	57,603,083	54,051,824

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (80,492)	$ (88,756)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	6,742	4,920
Changes in operating assets and liabilities:
Increase in accounts payable	17,494	30,256
Increase in accrued liabilities	38,661	43,787
Net Cash Used by Operating Activities	(17,595)	(9,793)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capitalized software development costs	0	(37,567)
Intellectual property development costs	(13,624)	(7,794)
Net Cash Used By Investing Activities	(13,624)	(45,361)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	25,000	52,500
Net Cash Provided by Financing Activities	25,000	52,500
NET DECREASE IN CASH	(6,219)	(2,654)
CASH AT BEGINNING OF PERIOD	31,782	23,194
CASH AT END OF PERIOD	25,563	20,540
Cash Paid For:
Interest	0	0
Income taxes	0	0
Non-Cash Investing and Financing Activities:
Accrual for preferred stock dividends payable with preferred shares	28,952	41,788
Preferred stock issued to pay dividends	$ 53,342	$ 71,852

1. BASIS OF FINANCIAL STATEMENT

1. BASIS OF FINANCIAL STATEMENT PRESENTATION	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF FINANCIAL STATEMENT PRESENTATION	Klever Marketing, Inc. (the “Company”) was created to develop, market and distribute an electronic shopping cart device for in-store advertising, promotion and media content and retail shopper services and has not commenced its planned principal operations. The Company’s activities since inception have consisted principally of developing various applications of its electronic shopping cart concept including its mobile application for smart phones which the Company is currently testing in retail supermarkets, obtaining patents and trademarks related to its technology, and raising capital. The Company’s activities are subject to significant risks and uncertainties including failing to secure additional funding needed to finalize development of the Company’s technology and to commercialize its product in a profitable manner. The accompanying unaudited, condensed financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles (“GAAP”) have been condensed or omitted in accordance with such rules and regulations. The information furnished in the interim condensed financial statements includes normal recurring adjustments and reflects all adjustments, which, in the opinion of management, are necessary for a fair presentation of such financial statements. Although management believes the disclosures and information presented are adequate to make the information not misleading, it is suggested that these interim condensed financial statements be read in conjunction with the Company's audited financial statements and notes thereto included in its December 31, 2015 Annual Report on Form 10-K. Operating results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016.

2. SIGNIFICANT ACCOUNTING POLIC

2. SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	The Company’s significant accounting policies are described in the notes to the Company’s audited financial statements included its December 31, 2015 Annual Report on Form 10-K. Income (Loss) Per Common Share Basic net income (loss) per share of common stock is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share of common stock is computed by dividing net income (loss) by the sum of the weighted average number of common shares outstanding and the dilutive potential common share equivalents than outstanding. Potential dilutive common share equivalents consist of shares issuable upon exercise of outstanding stock options and the exercise of convertible preferred stock. For the three months ended March 31, 2016 and 2015, the Company incurred net losses; therefore, common stock equivalents related to the conversion of stock options and convertible preferred stock have not been included in the calculation of diluted loss per common shares because they are anti-dilutive. Therefore, basic loss per common share is the same as diluted loss per common share for both periods. Reclassifications Certain amounts in the 2015 condensed financial statements have been reclassified to conform with the current year presentation. Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date or earlier if allowed. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. There were no new accounting pronouncements issued during the three months ended March 31, 2016 and through the date of this filing that we believe are applicable to or would have a material impact on the condensed financial statements of the Company.

3. GOING CONCERN UNCERTAINTY

3. GOING CONCERN UNCERTAINTY	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GOING CONCERN UNCERTAINTY	As shown in the accompanying condensed financial statements, during the three months ended March 31, 2016 and 2015, the Company did not generate any revenue from product sales and reported net losses of $80,492 and $88,756, respectively. As of March 31, 2016, the Company’s current and total liabilities exceeded its current assets by $820,956. As of March 31, 2016, the Company had $25,563 of cash. The Company will require additional funding during the next twelve months to finance the growth of its current operations and achieve its strategic objectives. These factors, as well as the uncertain conditions that the Company faces relative to capital raising activities, create substantial doubt as to the Company’s ability to continue as a going concern. The Company is seeking to raise additional capital principally through private placement offerings and is targeting strategic partners in an effort to finalize the development of its products and begin generating revenues. The ability of the Company to continue as a going concern is dependent upon the success of future capital offerings or alternative financing arrangements and expansion of its operations. The accompanying financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern. Management is actively pursuing additional sources of financing sufficient to generate enough cash flow to fund its operations through calendar year 2016. However, management cannot make any assurances that such financing will be secured.

4. INTANGIBLE ASSETS

4. INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
4. INTANGIBLE ASSETS	Intangible assets consist of the following: March 31, December 31, Capitalized software development costs $ 535,023 $ 535,023 Patents and trademarks 147,225 133,601 Accumulated amortization of patents and trademarks (60,707 ) (54,026 ) $ 621,541 $ 614,598 The Company capitalizes software development costs incurred from the time technological feasibility has been obtained until the product is generally released to customers. Amortization of capitalized software development costs begins when the products are available to customers and is computed using the straight-line method over the remaining estimated economic life of the product. Currently, the Company anticipates amortization of software development costs to commence in fiscal year 2016. The Company achieved technological feasibility with regard to its mobile phone technology during the fourth quarter of 2010. No software development costs were incurred and capitalized during the three months ended March 31, 2016, and no amortization expense for software development costs was recorded for the three months ended March 31, 2016 and 2015. The costs of patents and trademarks are amortized on a straight-line basis over 5 years from the date the patent or trademark is issued. Intangible assets with indefinite lives are tested for impairment on an annual basis or when the facts and circumstances suggest that the carrying amount of the assets may not be recovered. Amortization expense for patents and trademarks was $6,681 and $4,808 for the three months ended March 31, 2016 and 2015, respectively.

5. ACCRUED LIABILITIES

5. ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2016
Payables and Accruals [Abstract]
ACCRUED LIABILITIES	Accrued liabilities consist of the following: March 31, December 31, Compensation - officers and bookkeeper $ 369,125 $ 330,125 Taxes 39,769 39,474 Accrued interest – related party 319 953 $ 409,213 $ 370,552

6. PREFERRED STOCK

6. PREFERRED STOCK	3 Months Ended
	Mar. 31, 2016
Preferred Stock
PREFERRED STOCK	Authorized Shares In accordance with the Company’s bylaws, the Company has authorized a total of 2,000,000 shares of preferred stock, par value $0.01 per share, for all classes. As of March 31, 2016 and December 31, 2015, there were 445,323 and 427,168 total preferred shares issued and outstanding for all classes, respectively. As of March 31, 2016, all of the Company’s outstanding preferred shares are owned by a Company that is controlled by the Company’s CEO. Preferred Stock Dividends As of March 31, 2016, the Company had accrued and unpaid preferred stock dividends totaling $48,009 compared to $72,399 as of December 31, 2015. To date, all accrued dividends for preferred stock have been authorized for payment through the issuance of preferred stock based on the ratios for each class of preferred stock described below. Class A Voting Preferred Stock The Company has 150,000 shares of “Class A Voting Preferred Stock” (“Class A Shares”) authorized. As of March 31, 2016 and December 31, 2015, there were 144,091 and 138,217 Class A Shares outstanding, respectively. Each Class A Share is convertible into 99.035 shares of common stock. Holders of Class A Shares are entitled to receive dividends at the rate of $2.20 per share per annum, payable semi-annually. Dividends are cumulative and may be paid in cash or in kind through the distribution of .0425 Class A Shares, Series 1, for each outstanding Class A Share, on each dividend payment date. Class A Shares carry a liquidation preference of $26.00 per share plus any accrued but unpaid dividends on such shares, if any, and adjusted for combinations, splits, dividends or distributions of shares of stock with respect to such shares. Class A shares are redeemable by the Company, in whole or in part, at the option of the Board of Directors of the Company, at any time. Class B Voting Preferred Stock The Company has 125,000 shares of “Class B Voting Preferred Stock” (“Class B Shares”) authorized. As of March 31, 2016 and December 31, 2015, there were 109,209 and 104,757 Class B Shares outstanding, respectively. Each Class B Share is convertible into 64.754 shares of common stock. Holders of Class B Shares are entitled to receive dividends at the rate of $1.70 per share per annum, payable semi-annually. Dividends are cumulative and may be paid in cash or in kind through the distribution of .0425 Class B Shares for each outstanding Class B Share, on each dividend payment date. Class B Shares carry a liquidation preference of $17.00 per share plus any accrued but unpaid dividends on such shares, if any, and adjusted for combinations, splits, dividends or distributions of shares of stock with respect to such shares. Class B shares are redeemable by the Company, in whole or in part, at the option of the Board of Directors of the Company, at any time. Class C Voting Preferred Stock The Company has 200,000 shares of “Class C Voting Preferred Stock” (“Class C Shares”) authorized. As of March 31, 2016 and December 31, 2015, there were 192,023 and 184,194 Class C Shares outstanding, respectively. Each Class C Share is convertible into 25.140 shares of common stock. Holders of Class C Shares are entitled to receive dividends at the rate of $0.66 per share per annum, payable semi-annually. Dividends are cumulative and may be paid in cash or in kind through the distribution of .0425 Class C Shares for each outstanding Class C Share, on each dividend payment date. Class C Shares carry a liquidation preference of $6.60 per share plus any accrued but unpaid dividends on such shares, if any, and adjusted for combinations, splits, dividends or distributions of shares of stock with respect to such shares. Class C shares are redeemable by the Company, in whole or in part, at the option of the Board of Directors of the Company, at any time.

7. COMMON STOCK

7. COMMON STOCK	3 Months Ended
	Mar. 31, 2016
STOCKHOLDERS' EQUITY (DEFICIT)
COMMON STOCK	In accordance with the Company’s bylaws, the Company has authorized a total of 250,000,000 shares of common stock, par value $0.01 per share. As of March 31, 2016 and December 31, 2015, there were 57,740,446 and 57,240,446 common shares issued and outstanding. During the three months ended March 31, 2016, the Company issued 500,000 shares of common stock to an investor for $25,000 cash. During the three months ended March 31, 2015, the Company issued 872,619 shares to investors for $52,500 cash. As more fully described in Note 7, one investor also received options to purchase shares of the Company’s restricted common stock in connection with his investment in the Company.

8. STOCK OPTIONS

8. STOCK OPTIONS	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTIONS	The Company’s shareholders approved, by a majority vote, the adoption of the 1998 Stock Incentive Plan (the “Plan”). As amended on August 11, 2003, the Plan reserves 20,000,000 shares of common stock for issuance upon the exercise of options which may be granted from time-to-time to officers, directors, certain employees and consultants of the Company or its subsidiaries by the Board of Directors. The Plan permits the award of both qualified and non-qualified incentive stock options. During the three months ended March 31, 2016, the Company did not issue any stock options. During the three months ended March 31, 2015, the Company issued 100,000 options with an exercise price of $0.075 per share to an investor who simultaneously purchased common shares of the Company. A summary of the Company’s stock option awards as of March 31, 2016, and changes during the three months then ended is as follows: Shares Weighted Average Exercise Price Weighted Average Remaining Contract Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2015 2,800,000 $ 0.050 2.09 Granted - $ – Exercised - $ – Forfeited or expired - $ – Outstanding and exercisable at March 31, 2016 2,800,000 $ 0.050 1.84 $ 2,800 The aggregate intrinsic value in the preceding table represents the total pretax intrinsic value, based on our closing stock price of $0.051 as of March 31, 2016, which would have been received by the holders of in-the-money options had the option holders exercised their options as of that date.

9. RELATED PARTY TRANSACTION

9. RELATED PARTY TRANSACTION	3 Months Ended
	Mar. 31, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTION	The Company periodically receives funding from officers and directors to fund operations. Jerry Wright, a director, advanced to the Company $30,000 during the year ended December 31, 2015. The Company repaid $4,500 of the advance, resulting in a related party note payable of $25,500 as of March 31, 2016 and December 31, 2015 reported in the Company’s Condensed Balance Sheets. The related party note payable bears interest at the rate of 6% per annum, and had accrued interest payable of $319 and $953 as of March 31, 2016 and December 31, 2015, respectively. The maturity date of the note has been extended to June 30, 2016. The Company’s CEO and the bookkeeper who is the wife of the CEO provide consulting services to the Company through companies controlled by the individuals. The Company accrued $40,500 for compensation for the CEO during each of the three-month periods ended March 31, 2016 and 2015. Accrued compensation to the CEO totaled $352,625 and $318,125 as of March 31, 2016 and December 31, 2015, respectively. The bookkeeper earned $4,500 during each of the three-month periods ended March 31, 2016 and 2015 for services provided to the Company. Accrued compensation to the bookkeeper totaled $16,500 and $12,000 as of March 31, 2016 and December 31, 2015, respectively.

10. SUBSEQUENT EVENTS

10. SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	The Company evaluated events occurring after the date of the accompanying condensed balance sheets through the date the financial statements were issued and has identified the following subsequent event that it believes requires disclosure. In May 2016, the Company received proceeds of $25,000 from the sale of 500,000 shares of its common stock at $0.05 per share.

2. SIGNIFICANT ACCOUNTING POL16

2. SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Income (Loss) Per Common Share	Income (Loss) Per Common Share Basic net income (loss) per share of common stock is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share of common stock is computed by dividing net income (loss) by the sum of the weighted average number of common shares outstanding and the dilutive potential common share equivalents than outstanding. Potential dilutive common share equivalents consist of shares issuable upon exercise of outstanding stock options and the exercise of convertible preferred stock. For the three months ended March 31, 2016 and 2015, the Company incurred net losses; therefore, common stock equivalents related to the conversion of stock options and convertible preferred stock have not been included in the calculation of diluted loss per common shares because they are anti-dilutive. Therefore, basic loss per common share is the same as diluted loss per common share for both periods.
Reclassifications	Reclassifications Certain amounts in the 2015 condensed financial statements have been reclassified to conform with the current year presentation.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (“FASB”) that are adopted by the Company as of the specified effective date or earlier if allowed. If not discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on the Company’s financial statements upon adoption. There were no new accounting pronouncements issued during the three months ended March 31, 2016 and through the date of this filing that we believe are applicable to or would have a material impact on the condensed financial statements of the Company.

4. INTANGIBLE ASSETS (Tables)

4. INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets	March 31, December 31, Capitalized software development costs $ 535,023 $ 535,023 Patents and trademarks 147,225 133,601 Accumulated amortization of patents and trademarks (60,707 ) (54,026 ) $ 621,541 $ 614,598

5. ACCRUED LIABILITIES (Tables)

5. ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2016
Payables and Accruals [Abstract]
Accrued liabilities	March 31, December 31, Compensation - officers and bookkeeper $ 369,125 $ 330,125 Taxes 39,769 39,474 Accrued interest – related party 319 953 $ 409,213 $ 370,552

8. STOCK OPTIONS (Tables)

8. STOCK OPTIONS (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock option activity	Shares Weighted Average Exercise Price Weighted Average Remaining Contract Term (Years) Aggregate Intrinsic Value Outstanding at December 31, 2015 2,800,000 $ 0.050 2.09 Granted - $ – Exercised - $ – Forfeited or expired - $ – Outstanding and exercisable at March 31, 2016 2,800,000 $ 0.050 1.84 $ 2,800

3. GOING CONCERN UNCERTAINTY (D

3. GOING CONCERN UNCERTAINTY (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
PreferredClassCMember
Net loss	$ (80,492)	$ (88,756)
Current and total liabilities over current assets	820,956
Cash on hand	$ 25,563	$ 20,540	$ 31,782	$ 23,194

4. INTANGIBLE ASSETS (Details)

4. INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized software development costs	$ 535,023	$ 535,023
Patents and trademarks	147,225	133,601
Accumulated amortization of patents and trademarks	(60,707)	(54,026)
Other assets - intangibles, net	$ 621,541	$ 614,598

4. INTANGIBLE ASSETS (Details N

4. INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Capitalized software development costs in period	$ 0
Amortization expense for software development costs	0	$ 0
Amortization Expense for patents and trademarks	$ 6,681	$ 4,808

5. ACCRUED LIABILITIES (Details

5. ACCRUED LIABILITIES (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Payables and Accruals [Abstract]
Compensation - officers and bookkeeper	$ 369,125	$ 330,125
Taxes	39,769	39,474
Accrued interest - related party	319	953
Accrued Liabilities	$ 409,213	$ 370,552

6. PREFERRED STOCK (Details Nar

6. PREFERRED STOCK (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Convertible preferred stock - shares authorized	2,000,000
Convertible preferred stock - par value	$ .01
Convertible preferred stock - shares issued	445,323	427,168
Convertible preferred stock - shares outstanding	445,323	427,168
Accrued and unpaid preferred dividends	$ 48,009	$ 72,399
Convertible Preferred Stock Series A [Member]
Convertible preferred stock terms of conversion	The Class A Shares are convertible into 99.035 shares of common stock. Holders of Class A Shares are entitled to receive dividends at the rate of $2.20 per share per annum, payable semi-annually.
Convertible Preferred Stock Series B [Member]
Convertible preferred stock terms of conversion	The Class B Shares are convertible into 64.754 shares of common stock. Holders of Class B Shares are entitled to receive dividends at the rate of $1.70 per share per annum, payable semi-annually.
Convertible Preferred Stock Series C [Member]
Convertible preferred stock terms of conversion	The Class C Shares are convertible into 25.140 shares of common stock. Holders of Class C Shares are entitled to receive dividends at the rate of $0.66 per share per annum, payable semi-annually.

7. COMMON STOCK (Details Narrat

7. COMMON STOCK (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Common stock par value (in Dollars per share)	$ 0.01	$ 0.01	$ 0.01
Common stock, shares authorized	250,000,000	250,000,000	250,000,000
Common stock, shares issued	57,740,446	57,240,446	57,240,446
Common stock, shares outstanding	57,740,446	57,240,446	57,240,446
Proceeds from issuance of common stock	$ 25,000	$ 52,500
Investors [Member]
Stock issued new, shares issued	500,000	872,619
Proceeds from issuance of common stock	$ 25,000	$ 52,500

8. STOCK OPTIONS (Details - Opt

8. STOCK OPTIONS (Details - Option activity) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Option shares
Options outstanding, beginning balance	2,800,000
Options granted	0
Options exercised	0
Options forfeited or expired	0
Options outstanding, ending balance	2,800,000
Options outstanding and exercisable	2,800,000
Weighted Average Exercise Price
Options outstanding, beginning balance	$ 0.050
Options granted	0
Options exercised	0
Options forfeited or expired	0
Options outstanding, ending balance	$ 0.050
Options outstanding and exercisable		$ .075
Weighted average remaining contract term, beginning	2 years 1 month 2 days
Weighted average remaining contract term	1 year 10 months 2 days
Aggregate intrinsic value	$ 2,800

8. STOCK OPTIONS (Details Narra

8. STOCK OPTIONS (Details Narrative) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Aug. 11, 2003
Common stock reserved for issuance			20,000,000
Stock options granted	0
Stock options granted, exercise price		$ .075
Closing stock price	$ .051
Investor [Member]
Stock options granted		100,000

9. RELATED PARTY TRANSACTIONS (

9. RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Mar. 01, 2016	Mar. 01, 2015
Due to related party	$ 25,500		$ 25,500
Accrued interest payable	319		953
Total accrued compensation	369,125		330,125
Jerry Wright [Member]
Proceeds from related party loans			30,000
Repayment of related party loans			$ 4,500
Interest rate			6.00%
Due to related party	25,500		$ 25,500
Accrued interest payable	319		$ 953
Debt maturity date			Jun. 30, 2016
Chief Executive Officer [Member]
Employee related liabilities, current period	40,500	$ 40,500
Total accrued compensation				$ 352,625	$ 318,125
Bookkeeper [Member]
Employee related liabilities, current period	$ 4,500	$ 4,500
Total accrued compensation				$ 16,500	$ 12,000