Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | 1-May-14 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'SPATIALIZER AUDIO LABORATORIES INC | ' |
Entity Central Index Key | '0000890821 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
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 | ' | 15,409,999 |
Document Fiscal Period Focus | 'Q1 | ' |
Document Fiscal Year Focus | '2014 | ' |
UNAUDITED_BALANCE_SHEETS
UNAUDITED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ' | ' |
Cash and Cash Equivalents | $22,470 | $249 |
Other Current Assets | 4,219 | 4,219 |
Total Current Assets | 26,689 | 4,468 |
Total Assets | 26,689 | 4,468 |
Current Liabilities: | ' | ' |
Accounts Payable and Accrued Liabilities | 2,783 | 22,695 |
Loans from Stockholders | 2,000 | 2,000 |
Total Current Liabilities | 4,783 | 24,695 |
Commitments and Contingencies | ' | ' |
Stockholders' Equity (Deficit): | ' | ' |
Preferred shares, $.01 par value, 1,000,000 shares authorized, none issued and outstanding | ' | ' |
Common shares, $.01 par value, 300,000,000 shares authorized, 15,409,999 and 12,142,025 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively | 154,100 | 121,420 |
Additional Paid-In Capital | 47,268,207 | 47,250,887 |
Accumulated Deficit | -47,400,401 | -47,392,534 |
Total Stockholders' Equity (Deficit) | 21,906 | -20,227 |
Total Liabilities and Stockholders' Equity (Deficit) | $26,689 | $4,468 |
UNAUDITED_BALANCE_SHEETS_Paren
UNAUDITED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Stockholders' Equity (Deficit): | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, authorized shares | 300,000,000 | 300,000,000 |
Common stock, issued shares | 15,409,999 | 12,142,025 |
Common stock, outstanding shares | 15,409,999 | 12,142,025 |
UNAUDITED_STATEMENTS_OF_OPERAT
UNAUDITED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Operating Expenses : | ' | ' |
General and Administrative | $7,584 | $4,698 |
Operating Loss | -7,584 | -4,698 |
Loss Before Income Taxes | -7,584 | -4,698 |
Income Taxes | 283 | ' |
Net Loss | ($7,867) | ($4,698) |
Basic and Diluted Loss Per Share | $0 | $0 |
Weighted Average Shares Outstanding - Basic and Diluted | 14,901,647 | 12,142,000 |
UNAUDITED_STATEMENTS_OF_CASH_F
UNAUDITED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Cash Flows from Operating Activities: | ' | ' |
Net Loss | ($7,867) | ($4,698) |
Net Change in Assets and Liabilities: | ' | ' |
Accounts Payable and Accrued Liabilities | -19,912 | -7,523 |
Net Cash Used In Operating Activities | -27,779 | -12,221 |
Cash Flows from Financing Activities: | ' | ' |
Issuance of Common Stock | 50,000 | ' |
Loans from Stockholders | ' | 12,000 |
Net Cash Provided by Financing Activities | 50,000 | 12,000 |
Increase (decrease) in Cash and Cash Equivalents | 22,221 | -221 |
Cash and Cash Equivalents, Beginning of Period | 249 | 1,381 |
Cash and Cash Equivalents, End of Period | 22,470 | 1,160 |
Cash paid during the period for: | ' | ' |
Interest | ' | 148 |
Income Taxes | $1,732 | $1,450 |
OPERATIONS_AND_SUMMARY_OF_SIGN
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2014 | |
Notes to Financial Statements | ' |
Note 1 - OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
Nature of Operations | |
Spatializer Audio Laboratories, Inc. (“Spatializer” or the “Company”) was incorporated under the laws of Delaware in 1994. Until 2007, the Company was a developer, licensor and marketer of next generation technologies for the consumer electronics, personal computing, entertainment and cellular telephone markets. The principal business of the Company was closed down in 2007, and the Company has no further operating activities and is now a shell company. | |
Going Concern | |
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has concluded that it should look for acquisitions or identify a merger partner. There can be no assurances that the Company will be successful in completing such a transaction or be able to maintain sufficient liquidity over a period of time that will allow it to carry out these actions, in which case the Company might be forced to liquidate or seek protection under the Federal bankruptcy statutes, or both. | |
The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern. | |
The Company is quoted on the OTCQB of the OTC Marketplace under the symbol “SPZR”. | |
Basis of presentation | |
The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-Q. Accordingly they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |
For further information, refer to the financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013. | |
Accounting Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. | |
Cash Equivalents | |
For the purposes of the statements of cash flows, the Company considers all highly liquid cash investments that mature in three months or less when purchased, to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. | |
Stock Options | |
Compensation cost relating to stock-based payments, including grants of employee stock options, is recognized in financial statements based on the fair value of the equity instruments issued on the grant date. The Company recognized the fair value of stock-based compensation awards as compensation expense in its statement of operations on a straight line basis, over the vesting period. | |
Income Taxes | |
Income taxes are provided under the asset and liability method and reflect the net tax effects of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The Company establishes valuation allowances when the realization of specific deferred tax assets is subject to significant uncertainty. The Company records no tax benefits on its operating losses, as the losses will have to be carried forward and realization of any benefit is uncertain. | |
Earnings Per Share | |
Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Since the Company generated net losses in each of the periods presented, outstanding stock options would have been anti-dilutive and were not considered in these calculations. | |
Fair Value of Financial Instruments | |
The carrying values of the Company’s current assets and liabilities approximated fair value due to their short maturity or nature. | |
Recently Issued Accounting Pronouncements | |
There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on the Company’s financial position, results of operations or cash flows. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2014 | |
Notes to Financial Statements | ' |
Note 2 - Income Taxes | ' |
At March 31, 2014, we had net operating loss carry-forwards for Federal income tax purposes of approximately $9,600,000 which were available to offset future Federal taxable income, if any, through 2031. These net operating loss carry forwards are subject to an annual limitation of approximately $1,000,000. Utilization of these loss carryforwards is subject to further limitation as a result of change in ownership of the Company, as defined by Federal tax law. | |
The Company’s income tax returns remain subject to examination for the years 2010 through 2013 for federal and state purposes. |
STOCK_OPTION_PLAN
STOCK OPTION PLAN | 3 Months Ended |
Mar. 31, 2014 | |
Notes to Financial Statements | ' |
Note 3 - STOCK OPTION PLAN | ' |
There are no outstanding options as of March 31, 2014. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 3 Months Ended |
Mar. 31, 2014 | |
Notes to Financial Statements | ' |
Note 4 - STOCKHOLDERS' EQUITY | ' |
As previously reported on the Company’s Form 8-K, on January 15, 2014, the Company issued 3,267,974 shares of common stock to Lone Star Value Investors, LP, an entity controlled by a director and officer of the Company, for cash proceeds of $50,000. The proceeds of this issuance will be used to assist in funding the Company’s operating expenses. |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2014 | |
Notes to Financial Statements | ' |
Note 5 - Subsequent Events | ' |
No material subsequent events have occurred since March 31, 2014 that require recognition or disclosure in the financial statements. |
OPERATIONS_AND_SUMMARY_OF_SIGN1
OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Operations And Summary Of Significant Accounting Policies Policies | ' |
Nature of Operations | ' |
Spatializer Audio Laboratories, Inc. (“Spatializer” or the “Company”) was incorporated under the laws of Delaware in 1994. Until 2007, the Company was a developer, licensor and marketer of next generation technologies for the consumer electronics, personal computing, entertainment and cellular telephone markets. The principal business of the Company was closed down in 2007, and the Company has no further operating activities and is now a shell company. | |
Going Concern | ' |
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. The Company has concluded that it should look for acquisitions or identify a merger partner. There can be no assurances that the Company will be successful in completing such a transaction or be able to maintain sufficient liquidity over a period of time that will allow it to carry out these actions, in which case the Company might be forced to liquidate or seek protection under the Federal bankruptcy statutes, or both. | |
The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result from the possible inability of the Company to continue as a going concern. | |
The Company is quoted on the OTCQB of the OTC Marketplace under the symbol “SPZR”. | |
Basis of presentation | ' |
The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-Q. Accordingly they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. Operating results for the interim period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. | |
For further information, refer to the financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013. | |
Accounting Estimates | ' |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires that management make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates. | |
Cash Equivalents | ' |
For the purposes of the statements of cash flows, the Company considers all highly liquid cash investments that mature in three months or less when purchased, to be cash equivalents. Cash equivalents are stated at cost, which approximates fair value. | |
Stock Options | ' |
Compensation cost relating to stock-based payments, including grants of employee stock options, is recognized in financial statements based on the fair value of the equity instruments issued on the grant date. The Company recognized the fair value of stock-based compensation awards as compensation expense in its statement of operations on a straight line basis, over the vesting period. | |
Income Taxes | ' |
Income taxes are provided under the asset and liability method and reflect the net tax effects of temporary differences between the tax basis of assets and liabilities and their reported amounts in the financial statements. The Company establishes valuation allowances when the realization of specific deferred tax assets is subject to significant uncertainty. The Company records no tax benefits on its operating losses, as the losses will have to be carried forward and realization of any benefit is uncertain. | |
Earnings Per Share | ' |
Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. Since the Company generated net losses in each of the periods presented, outstanding stock options would have been anti-dilutive and were not considered in these calculations. | |
Fair Value of Financial Instruments | ' |
The carrying values of the Company’s current assets and liabilities approximated fair value due to their short maturity or nature. | |
Recently Issued Accounting Pronouncements | ' |
There were various accounting standards and interpretations issued recently, none of which are expected to a have a material impact on the Company’s financial position, results of operations or cash flows. |
INCOME_TAXES_Details_Narrative
INCOME TAXES (Details Narrative) (USD $) | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes Details Narrative | ' |
Operating Loss Carry Forward | $9,600,000 |
Operating loss carry forward annual limitation | 'Annual limitation of approximately $1,000,000 |
Federal future taxable income offset | '2031 |