Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 21, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | 2050 MOTORS, INC. | |
Entity Central Index Key | 867,028 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 37,148,599 | |
Trading Symbol | ETFM | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2,016 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 10,370 | $ 81,984 |
Prepaid expenses | 66,000 | 25,000 |
Deferred finance cost (current portion) | 37,500 | |
Total current assets | 113,870 | 106,984 |
Property and equipment, net | 74,623 | 105,382 |
Other assets: | ||
Vehicle deposits | 24,405 | 24,405 |
Other deposits | 2,200 | 7,400 |
Deferred finance cost (non-current portion) | 28,125 | |
License | 50,000 | 50,000 |
Total other assets | 104,730 | 81,805 |
Total assets | 293,223 | 294,171 |
Liabilities | ||
Accounts payable | 69,257 | 3,515 |
Accrued interest on loans payable | 18,745 | 4,980 |
Loans payable due to related parties | 62,740 | 66,500 |
Loans payable due to non-related parties | 92,400 | |
Revolving line of credit | 101,400 | |
Deferred expenses | 428 | 978 |
Total liabilities | 344,970 | 75,973 |
Stockholders' deficit | ||
Common stock and additional paid-in capital; no par value Authorized: 100,000,000 shares at September 30, 2016 and December 31, 2015 Issued and outstanding: 33,948,599 at September 30, 2016 and 33,748,599 at December 31, 2015 | 2,016,101 | 1,993,996 |
Accumulated deficit | (2,202,848) | (1,775,798) |
Common stock issuable | 135,000 | |
Total stockholders' (deficit) equity | (51,747) | 218,198 |
Total liabilities and stockholders' (deficit) equity | $ 293,223 | $ 294,171 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value | ||
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,948,599 | 33,748,599 |
Common stock, shares outstanding | 33,948,599 | 33,748,599 |
Condensed Statements of Operati
Condensed Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Operating revenue | ||||
Operating expenses: | ||||
R&D | 10,010 | 27,140 | 50,688 | 47,580 |
General & administrative | 110,997 | 131,885 | 363,723 | 412,888 |
Total operating expenses | 121,007 | 159,025 | 414,411 | 460,468 |
Net loss from operations | (121,007) | (159,025) | (414,411) | (460,468) |
Interest expense | 6,937 | 3,024 | 13,765 | 8,974 |
Gain on sale of equipment | (1,126) | (1,126) | ||
Loss before income taxes | (126,818) | (162,049) | (427,050) | (469,442) |
Provision for income taxes | ||||
Net loss | $ (126,818) | $ (162,049) | $ (427,050) | $ (469,442) |
Net loss per share, basic and diluted | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Weighted average common equivalent shares outstanding, basic and diluted | 33,948,599 | 33,523,599 | 33,882,906 | 33,504,468 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows provided by (used for) operating activities: | ||
Net loss | $ (427,050) | $ (469,442) |
Adjustments to reconcile net profit to net cash provided by (used for) operating activities: | ||
Depreciation | 29,585 | 14,050 |
Amortization of prepaid expenses (related to issuance of common stock for services) | 89,000 | |
Issuance of common stock for services | 31,480 | |
Changes in assets and liabilities: - Increase (decrease) in assets and liabilities: | ||
Prepaid rent | 9,320 | |
Prepaid expenses | (5,000) | (24,025) |
Deposits | 5,200 | (2,800) |
Accounts payable | 65,742 | (1,074) |
Accrued interest on loans payable | 13,765 | 2,466 |
Deferred expenses | (550) | (550) |
Net cash used for operating activities | (197,828) | (472,055) |
Cash flows provided by (used) for investing activities: | ||
Purchase of property and equipment | (5,107) | |
Sale of property and equipment | 1,174 | |
Net cash provided by (used) for investing activities | 1,174 | (5,107) |
Cash flows provided by (used) by financing activities: | ||
Proceeds from related party advances | 3,140 | |
Payments made on related party advances | (6,900) | (763) |
Proceeds from non-related loans | 17,400 | |
Proceeds from revolving line of credit | 102,550 | |
Payments made on revolving line of credit | (1,150) | |
Proceeds from issuance of common stock | 10,000 | 30,000 |
Net cash provided by financing activities | 125,040 | 29,237 |
Net decrease in cash | (71,614) | (447,925) |
Cash, beginning of year | 81,984 | 756,675 |
Cash, end of period | 10,370 | 308,750 |
Supplemental disclosure of cash flow information - | ||
Interest payment | 6,508 | |
Deferred finance cost from non-cash transaction | 75,000 | |
Common stock issued for prepaid expense | $ 125,000 |
Business
Business | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business | 1. BUSINESS 2050 Motors, Inc., (the Company) was formed to import, market, and sell electric cars manufactured in China. 2050 Motors has entered into an agreement with Jiangsu Aoxin New Energy Automobile Co., Ltd., located in Jiangsu, China (Aoxin), for the distribution in the United States of a new electric automobile, known as the e-Go EV. |
Going Concern
Going Concern | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Going Concern | 2. GOING CONCERN The Companys ability to continue in existence is dependent on its ability to develop additional sources of capital, and/or achieve profitable operations, positive cash flows, and the successful distribution of the vehicles in the USA markets. Managements plan is to aggressively pursue its present business plan. Since inception the Company has funded its operations through the issuance of common stock and related party funding and advances, and will seek additional debt or equity financing as required. However, there can be no assurance that the Company would be successful in raising such additional funds. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Unaudited Interim Financial Information The accompanying unaudited condensed financial statements have been prepared in accordance with the SECs requirements for Form 10-Q and, in the opinion of management, contain all adjustments, of a normal and recurring nature, which are necessary for a fair statement of (i) the condensed balance sheets at September 30, 2016 and December 31, 2015; (ii) the condensed statements of operations for the three and nine month periods ended September 30, 2016 and 2015; and (iii) the condensed statements of cash flows for the nine month periods ended September 30, 2016 and 2015. However, the accompanying unaudited condensed financial statements do not include all information and notes required by accounting principles generally accepted in the United States of America (U.S. GAAP). The Condensed balance sheet, included in this report, as of December 31, 2015 was derived from the 2015 audited financial statements, but does not include all disclosures required by U.S. GAAP. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on April 6, 2016. 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Cash Cash consists of deposits in one large national bank. Advertising Costs Costs incurred for producing and communicating advertising are expensed when incurred and included in selling general and administrative expenses. Advertising expense amounted to $0 for the three and nine months ended September 30, 2016 and 2015, respectively. Property and Equipment Property and equipment are stated at cost. Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs, which do not improve or extend the lives of the respective assets are expensed. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to income. Property and equipment are depreciated over the useful lives of the asset using the straight line method. Depreciation is calculated using straight-line method over the assets estimated useful lives as follows: Furniture and fixtures Leasehold 7 years improvements Vehicles and parts Lessor of lease term or life of related assets Tools and equipment 3 years 5 years Depreciation for the three and nine month periods ended September 30, 2016 totaled $9,785 and $29,585, respectively. Depreciation for the three and nine month periods ended September 30, 2015 totaled $4,735 and $14,050, respectively. Impairment of Long-Lived Assets and Assets The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recorded. No impairment losses were recognized for the three and nine months ended September 30, 2016 and 2015. Earnings Per Share Basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. For the three and nine months ended September 30, 2016, and 2015, the Company has incurred losses; therefore the effect of any Common Stock equivalent would be anti- dilutive during those periods. There were no warrants, options, or other stock equity outstanding as of September 30, 2016 and 2015. Concentration of Credit Risk Cash is mainly maintained by one highly qualified institution in the United States. At various times such amounts are in excess of federally insured limits. Management does not believe that the Company is subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. The Company has not experienced any losses on our deposits of cash. Recent Accounting Pronouncement In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606). Topic 606 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments create a new Subtopic 340-40, Other Assets and Deferred CostsContracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. Management is currently evaluating the impact this guidance will have on Companys financial position and statement of operations. In June 2014, FASB issued amendment 2014-10 that eliminates certain financial reporting requirements for Development Stage Entities. This amendment is effective for annual reporting periods beginning after December 15, 2014 and interim periods therein. Early application is permitted. The Company adopted this amendment effective July 1, 2014 by removing the following disclosures: a) Presentation of inception-to-date information in the statement of income, cash flows and shareholder equity. b) Labeling the financial statements as those of a development stage entity. c) Description of the development stage activities in which the entity is engaged. In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements Going Concern , Subtopic 205-40, Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern. The amendments in this ASU apply to all entities and require management to assess an entitys ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of managements plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of managements plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Management is currently evaluating the impact this guidance will have on Companys financial position and results of operations. Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes. This statement requires an asset and liability approach for accounting for income taxes. The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an entity in its tax returns that might be uncertain. The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an organization in its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken by the Company in its Federal and State tax returns are more likely than not to be sustained upon examination. The Company files income tax returns in the U.S. and various state jurisdictions. The Company is subject to examinations by U.S. Federal and State tax authorities from 2012 (inception) to the present, generally for three years after they are filed. Foreign Currency Risk Any significant changes in foreign currency exchange rates may have significant impact on Companys future financial statements upon fulfilling certain purchase commitments in accordance to the license agreement disclosed in Note 5. |
Vehicle Deposits
Vehicle Deposits | 9 Months Ended |
Sep. 30, 2016 | |
Deposits [Abstract] | |
Vehicle Deposits | 4. VEHICLE DEPOSITS Vehicle deposit represents one prototype test model for delivery into the United States in the fourth quarter of 2016. This vehicle will undergo an advanced crash test known in the Automobile Safety Industry as the overlap crash test. |
License Agreement
License Agreement | 9 Months Ended |
Sep. 30, 2016 | |
License Agreement | |
License Agreement | 5. LICENSE AGREEMENT In 2012 and 2013, the Company made a total payment of $50,000 and signed an exclusive license agreement with Aoxin to import, assemble and manufacture the advanced carbon fiber electric vehicle, the e-Go EV model. The cost of this license agreement has been recognized as a long-term asset and is evaluated, by management, for impairment losses at each reporting period. |
Short-Term Advances
Short-Term Advances | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Short-Term Advances | 6. SHORT-TERM ADVANCES On August 29, 2014 and September 30, 2014, the Company issued two loans for a total amount of $100,000 due to a shareholder. The loans bear 12% interest and matured on February 28, 2015 and March 30, 2015, respectively. During March 2015, the maturity date of the notes were extended by twelve months. As of September 30, 2016, $59,600 of the principal balance plus accrued interest was outstanding. The Company received a $7,400 cash advance during the second quarter of 2016 from an unrelated party. The cash advance is non-interest bearing and was due on August 1, 2016. The Company received a $10,000 loan during the third quarter of 2016 from an unrelated party. The loan bears 12% interest and matures on March 16, 2017. During the third quarter ended September 30, 2016, the Company received a cash advance of $3,410 from one of its executives. The cash advance is non-interest bearing and is due on demand. |
Promissory Note and Equity Purc
Promissory Note and Equity Purchase Agreement | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Promissory Note and Equity Purchase Agreement | 7. PROMISSORY NOTE AND EQUITY PURCHASE AGREEMENT On June 24, 2016, the Company issued a $75,000 non-refundable Promissory Note to an investor as a pre- condition to an Equity Purchase Agreement. The promissory note bears 10% interest per annum with a one year maturity date. The note is recognized as a deferred finance charge and is being amortized over the contract period. The Equity Purchase Agreement allows the Company to issue Put Notices and the right to sell up to $10,000,000 of its no par value common stock at 88% of its market value. The market value is based on a ten day valuation period immediately preceding the Put Notice. The right to sell the shares becomes an obligation to sell as of the closing date after the Put Notice has been issued to the investor. The investor at no time can own more than 9.99% of the Companys common stock outstanding as of the closing date. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. COMMITMENTS AND CONTINGENCIES In November 2013, the Company signed a new facility lease. The monthly lease amount is $2,400. The lease term commenced on December 15, 2013 and expired on December 31, 2015. The lease was continued on a month to month basis and was terminated on February 29, 2016. Effective March 1, 2014, the Company signed a lease for four thousand square feet of industrial space in North Las Vegas. The term of the lease is for three years and cost $2,200 per month. The lease expires on April 30, 2017. Effective September 16, 2015, the Company renewed its residential lease agreement in California for its traveling consultants. Effective September 2015, the Company extended the lease agreement for one more year with a new monthly amount of $2,300. As of June 30, 2016, the Company discontinued its lease, which was assumed by a consultant of the Company. Rent expense amounted to $8,817 and $41,300 for the three and nine months ended September 30, 2016, respectively. Rent expense amounted to $21,807 and $66,920 for the three and nine months ended September 30, 2015, respectively. According to the license agreement signed between the Company and Aoxin, in order to maintain exclusive rights for the United States (US), the Company is required to purchase and sell certain amount of e-Go EV model vehicles per year for a certain period of time starting from the completion of the requirements established by the United States Department of Transportations protocols for the e-Go EV model. The table below demonstrates the required amount of vehicles that the company needs to sell per year. First year 2,000 Second year 6,000 Third year 12,000 Fourth year 24,000 Fifth year 48,000 92,000 As part of the license agreement, the Company is committed to pay expenses related to any required airbag testing procedures. The cost of these airbags could be as little as $500,000 or as much as $2 million. The Company may from time to time, become a party to various legal proceedings, arising in the ordinary course of business. The Company investigates these claims as they arise. Management does not believe, based on current knowledge, that there were any such claims outstanding as of September 30, 2016. |
Revolving Line of Credit
Revolving Line of Credit | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | 9. REVOLVING LINE OF CREDIT On February 12, 2016, the Company signed a twelve months revolving line of credit agreement with a consulting firm which is also utilized for consulting services. The line amount is $100,000 and carries interest at 12% per annum. As of September 30, 2016, the outstanding balance was $101,400. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Equity | 10. EQUITY Effective January 28, 2016, the Company issued 200,000 shares of companys common stock, valued at $0.1574 per share, to a third party in exchange for consulting and advisory services for a period of six months. Effective May 2, 2016, the Company signed an agreement to receive seven months of marketing services in exchange for 835,000 shares of the Companys common stock valued at $125,000 plus $36,000 cash. As of September 30, 2016, the Company has yet to issue the shares and is presented on the Condensed Balance Sheet as Common stock issuable. Of the $36,000 cash, $16,000 was still payable as of September 30, 2016. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | 11. SUBSEQUENT EVENTS On October 3, 2016, the Company resolved to issue 3,000,000 shares of the Companys common stock, valued at $0.028, to the Companys various board members, officers, and consultants for services. On November 1, 2016, the Company entered into four convertible promissory notes with three unrelated parties. The principle amount is $10,000 for each note and carries interest of 12% annum. All four notes mature on April 30, 2017. On October 26, 2016, the Company signed a Convertible Promissory Note with an unrelated party. The principle amount of the note is $65,000 and accrues twelve percent interest per annum and matures on July 26, 2017, but contains an on demand provision by the Issuer. This note shall not be convertible for the first 180 days after the Issuance Date. After the 180 th th th th th th th |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Unaudited Interim Financial Information | Unaudited Interim Financial Information The accompanying unaudited condensed financial statements have been prepared in accordance with the SECs requirements for Form 10-Q and, in the opinion of management, contain all adjustments, of a normal and recurring nature, which are necessary for a fair statement of (i) the condensed balance sheets at September 30, 2016 and December 31, 2015; (ii) the condensed statements of operations for the three and nine month periods ended September 30, 2016 and 2015; and (iii) the condensed statements of cash flows for the nine month periods ended September 30, 2016 and 2015. However, the accompanying unaudited condensed financial statements do not include all information and notes required by accounting principles generally accepted in the United States of America (U.S. GAAP). The Condensed balance sheet, included in this report, as of December 31, 2015 was derived from the 2015 audited financial statements, but does not include all disclosures required by U.S. GAAP. These unaudited interim consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2015, filed with the SEC on April 6, 2016. |
Use of Estimates | 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 disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. |
Cash | Cash Cash consists of deposits in one large national bank. |
Advertising Costs | Advertising Costs Costs incurred for producing and communicating advertising are expensed when incurred and included in selling general and administrative expenses. Advertising expense amounted to $0 for the three and nine months ended September 30, 2016 and 2015, respectively. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost. Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs, which do not improve or extend the lives of the respective assets are expensed. At the time property and equipment are retired or otherwise disposed of, the asset and related accumulated depreciation accounts are relieved of the applicable amounts. Gains or losses from retirements or sales are credited or charged to income. Property and equipment are depreciated over the useful lives of the asset using the straight line method. Depreciation is calculated using straight-line method over the assets estimated useful lives as follows: Furniture and fixtures Leasehold 7 years improvements Vehicles and parts Lessor of lease term or life of related assets Tools and equipment 3 years 5 years Depreciation for the three and nine month periods ended September 30, 2016 totaled $9,785 and $29,585, respectively. Depreciation for the three and nine month periods ended September 30, 2015 totaled $4,735 and $14,050, respectively. |
Impairment of Long-Lived Assets and Assets | Impairment of Long-Lived Assets and Assets The Company reviews long-lived assets to be held and used for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the expected future undiscounted cash flows is less than the carrying amount of the asset, an impairment loss is recorded. No impairment losses were recognized for the three and nine months ended September 30, 2016 and 2015. |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed by dividing earnings available to common stockholders by the weighted average number of outstanding common shares during the period. Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. For the three and nine months ended September 30, 2016, and 2015, the Company has incurred losses; therefore the effect of any Common Stock equivalent would be anti- dilutive during those periods. There were no warrants, options, or other stock equity outstanding as of September 30, 2016 and 2015. |
Concentration of Credit Risk | Concentration of Credit Risk Cash is mainly maintained by one highly qualified institution in the United States. At various times such amounts are in excess of federally insured limits. Management does not believe that the Company is subject to any unusual financial risk beyond the normal risk associated with commercial banking relationships. The Company has not experienced any losses on our deposits of cash. |
Recent Accounting Pronouncement | Recent Accounting Pronouncement In May 2014, the FASB issued ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606). Topic 606 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition guidance throughout the Industry Topics of the Codification. In addition, the amendments create a new Subtopic 340-40, Other Assets and Deferred CostsContracts with Customers. In summary, the core principle of Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. For a public entity, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is not permitted. Management is currently evaluating the impact this guidance will have on Companys financial position and statement of operations. In June 2014, FASB issued amendment 2014-10 that eliminates certain financial reporting requirements for Development Stage Entities. This amendment is effective for annual reporting periods beginning after December 15, 2014 and interim periods therein. Early application is permitted. The Company adopted this amendment effective July 1, 2014 by removing the following disclosures: a) Presentation of inception-to-date information in the statement of income, cash flows and shareholder equity. b) Labeling the financial statements as those of a development stage entity. c) Description of the development stage activities in which the entity is engaged. In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-15, Presentation of Financial Statements Going Concern , Subtopic 205-40, Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern. The amendments in this ASU apply to all entities and require management to assess an entitys ability to continue as a going concern by incorporating and expanding upon certain principles that are currently in U.S. auditing standards. Specifically, the amendments (1) provide a definition of the term substantial doubt, (2) require an evaluation every reporting period including interim periods, (3) provide principles for considering the mitigating effect of managements plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of managements plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that the financial statements are issued (or available to be issued). The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. Management is currently evaluating the impact this guidance will have on Companys financial position and results of operations. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC 740, Income Taxes. This statement requires an asset and liability approach for accounting for income taxes. The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an entity in its tax returns that might be uncertain. The accounting principles generally accepted in the United States of America provides accounting and disclosure guidance about positions taken by an organization in its tax returns that might be uncertain. Management has considered its tax positions and believes that all of the positions taken by the Company in its Federal and State tax returns are more likely than not to be sustained upon examination. The Company files income tax returns in the U.S. and various state jurisdictions. The Company is subject to examinations by U.S. Federal and State tax authorities from 2012 (inception) to the present, generally for three years after they are filed. |
Foreign Currency Risk | Foreign Currency Risk Any significant changes in foreign currency exchange rates may have significant impact on Companys future financial statements upon fulfilling certain purchase commitments in accordance to the license agreement disclosed in Note 5. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment Estimated Useful Life | Depreciation is calculated using straight-line method over the assets estimated useful lives as follows: Furniture and fixtures 7 years Leasehold improvements Lessor of lease term or life of related assets Vehicles and parts 3 years Tools and equipment 5 years |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Amount of Vehicles per Year | The table below demonstrates the required amount of vehicles that the company needs to sell per year. First year 2,000 Second year 6,000 Third year 12,000 Fourth year 24,000 Fifth year 48,000 92,000 |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Policies [Abstract] | ||||
Advertising expense | $ 0 | $ 0 | $ 0 | $ 0 |
Depreciation | 9,785 | 4,735 | 29,585 | 14,050 |
Impairment losses | ||||
Number of warrants outstanding | ||||
Number of options outstanding |
Summary of Significant Accoun21
Summary of Significant Accounting Policies - Schedule of Property and Equipment Estimated Useful Life (Details) | 9 Months Ended |
Sep. 30, 2016 | |
Furniture and Fixtures [Memebr] | |
Property and equipment estimated useful life | 7 years |
Leasehold Improvements [Member] | |
Property, plant and equipment, estimated useful lives | Lessor of lease term or life of related assets |
Vehicles and Parts [Member] | |
Property and equipment estimated useful life | 3 years |
Tools and Equipment [Member] | |
Property and equipment estimated useful life | 5 years |
License Agreement (Details Narr
License Agreement (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
License Agreement | ||
Total payment incurred for license agreement | $ 50,000 | $ 50,000 |
Short-Term Advances (Details Na
Short-Term Advances (Details Narrative) - USD ($) | Sep. 30, 2014 | Aug. 29, 2014 | Jun. 30, 2016 | Sep. 30, 2016 |
Unpaid principal balance of the loans | $ 59,600 | |||
Unrelated Party [Member] | ||||
Short term borrowing from third party | $ 7,400 | $ 10,000 | ||
Loan bears interest rate | 0.00% | 12.00% | ||
Short term borrowing maturity date | Aug. 1, 2016 | Mar. 16, 2017 | ||
Executives [Member] | ||||
Short term borrowing from third party | $ 3,410 | |||
Loan One [Member] | ||||
Short term borrowing from third party | $ 100,000 | |||
Loan bears interest rate | 12.00% | |||
Short term borrowing maturity date | Feb. 28, 2015 | |||
Loan Two [Member] | ||||
Short term borrowing from third party | $ 100,000 | |||
Loan bears interest rate | 12.00% | |||
Short term borrowing maturity date | Mar. 30, 2015 |
Promissory Note and Equity Pu24
Promissory Note and Equity Purchase Agreement (Details Narrative) - Investor [Member] - Equity Purchase Agreement[Member] - USD ($) | Jun. 24, 2016 | Sep. 30, 2016 |
Non refundable promissory note issued | $ 75,000 | |
Promissory note rate of interest per annum | 10.00% | |
Debt instrument maturity term | 1 year | |
Value of common stock issued | $ 10,000,000 | |
Percentage of market value of common stock issued | 88.00% | |
Percentage of common stock outstanding | 9.99% |
Commitments and Contingencies25
Commitments and Contingencies (Details Narrative) - USD ($) | Mar. 01, 2014 | Sep. 16, 2015 | Nov. 30, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Commitments and Contingencies Disclosure [Abstract] | |||||||
Lease monthly payment | $ 2,200 | $ 2,300 | $ 2,400 | ||||
Lease term expiration date | Apr. 30, 2017 | Sep. 16, 2016 | Feb. 29, 2016 | ||||
Lease agreement period | 3 years | 1 year | |||||
Rent expenses | $ 8,817 | $ 21,807 | $ 41,300 | $ 66,920 | |||
Cost of airbag | 500,000 | ||||||
Maximum cost of airbag | $ 2,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Amount of Vehicles per Year (Details) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Sale of vehicles per year | $ 92,000 |
First Year [Member] | |
Sale of vehicles per year | 2,000 |
Second Year [Member] | |
Sale of vehicles per year | 6,000 |
Third Year [Member] | |
Sale of vehicles per year | 12,000 |
Fourth Year [Member] | |
Sale of vehicles per year | 24,000 |
Fifth Year [Member] | |
Sale of vehicles per year | $ 48,000 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Details Narrative) - USD ($) | Feb. 12, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Line of credit amount | $ 100,000 | ||
Line of credit interest rate | 12.00% | ||
Revolving line of credit outstanding | $ 101,400 | ||
Revolving Credit Facility [Member] | |||
Revolving line of credit agreement period | 12 months |
Equity (Details Narrative)
Equity (Details Narrative) - USD ($) | May 02, 2016 | Jan. 28, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Value of common stock issued for marketing services | $ (31,480) | |||
Common stock value payable | $ 16,000 | |||
Common Stock One [Member] | ||||
Shares issued during period for services | 200,000 | |||
Stock issued, per share | $ 0.1574 | |||
Common Stock Two [Member] | ||||
Shares issued during period for services | 835,000 | |||
Value of common stock issued for marketing services | $ 125,000 | |||
Common stock issued for cash | $ 36,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] - USD ($) | Nov. 02, 2016 | Oct. 26, 2016 | Oct. 03, 2016 |
Convertible Promissory Note [Member] | Until Ninetieth (90) day after the Issuance Date [Member] | |||
Debt redemption price percentage | 135.00% | ||
Convertible Promissory Note [Member] | 90 Day One Hundred and Twentieth (120) Day after Issuance Date [Member] | |||
Debt redemption price percentage | 140.00% | ||
Convertible Promissory Note [Member] | From 12th day One Hundred and Eightieth (180) Day After Issuance Date [Member] | |||
Debt redemption price percentage | 145.00% | ||
Convertible Promissory Note [Member] | After the 180th day up to the Maturity Date [Member] | |||
Debt redemption price percentage | 150.00% | ||
Convertible Promissory Note [Member] | Conversion Price [Member] | |||
Debt discount lowest trading days | 20 days | ||
Percentage of debt discount lowest trading price | 50.00% | ||
Convertible Promissory Note [Member] | Conversion Price 1[Member] | |||
Debt discount lowest trading days | 20 days | ||
Percentage of debt discount lowest trading price | 50.00% | ||
Convertible Promissory Note [Member] | Unrelated Party [Member] | |||
Convertible promissory note, principle amount | $ 10,000 | $ 65,000 | |
Debt interest rate | 12.00% | 12.00% | |
Debt maturity date | Apr. 30, 2017 | Jul. 26, 2017 | |
Board Members,Officers and Consultants [Member] | |||
Number of common stock shares issued | 3,000,000 | ||
Shares issued price per share | $ 0.028 |