NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
1.
ORGANIZATION
Powerdyne,
Inc., was incorporated on February 2, 2010 in Nevada, and is registered to do business in Rhode Island and Massachusetts. On February
7, 2011, Powerdyne, Inc. merged with Powerdyne International, Inc., formerly Greenmark Acquisition Corporation, a publicly held
Delaware corporation.
On
December 13, 2010, Powerdyne International, Inc., formerly Greenmark Acquisition Corporation, filed an Amended and Restated Articles
of Incorporation in order to, among other things, increase the authorized capital stock to 300,000,000 common shares, par value
$0.0001 per share. Unless the context specifies otherwise, as discussed in Note 2, references to the “Company” refers
to Powerdyne International, Inc. and Powerdyne, Inc. after the merger.
At
the closing of the merger, each share of Powerdyne, Inc.’s common stock issued and outstanding immediately prior to the
closing of the Merger was exchanged for the right to receive 7,520 shares of common stock of Powerdyne International, Inc. Accordingly,
an aggregate of 188,000,000 shares of common stock of Powerdyne International, Inc. were issued to the holders of Powerdyne, Inc.’s
common stock.
In
2014, Powerdyne International, Inc. filed an amendment to its Articles of Incorporation which increased the authorized capital
stock to 550,000,000 common shares, par value $0.0001 per share.
On
January 26, 2015, Powerdyne International, Inc. filed an amendment to its Articles of Incorporation which increased the authorized
capital stock to 2,020,000,000 shares consisting of 2,000,000,000 common shares, par value $0.0001 per share and 20,000,000 shares
which may be designated as common or preferred stock, par value $0.0001 per share.
In
March 2014 Company began production and distribution of completely packaged independent electrical generator units that run on
environmentally-friendly fuel sources, such as natural gas and propane.
2.
REVERSE MERGER ACCOUNTING
On
February 7, 2011, Greenmark Acquisition Corporation, which was a publicly held Delaware corporation, merged with Powerdyne, Inc.
Upon closing of the transaction, Greenmark Acquisition Corporation, the surviving corporation in the merger, changed its name
to Powerdyne International, Inc.
The
merger was accounted for as a reverse-merger, and recapitalization in accordance with generally accepted accounting principles
in the United States (“GAAP”). Powerdyne, Inc. was the acquirer for financial reporting purposes and the Company was
the acquired company. Consequently, the assets and liabilities and the operations that are reflected in the historical financial
statements prior to the merger are those of Powerdyne, Inc. and have been recorded at the historical cost basis of Powerdyne,
Inc., and the financial statements after completion of the merger include the assets and liabilities of the Company and Powerdyne,
Inc., historical operations of Powerdyne, Inc. and operations of the Company from the closing date of the merger. Common stock
and the corresponding capital amounts of the Company pre-merger were retroactively restated as capital stock shares reflecting
the exchange ratio in the merger. In conjunction with the merger, the Company received no cash and assumed no liabilities from
Greenmark Acquisition Corporation.
3.
BASIS OF PRESENTATION
The
accompanying unaudited condensed financial statements have been prepared in accordance with accounting principles generally accepted
in the United States of America (“GAAP”) and include all the notes required by generally accepted accounting principles
for complete financial statements. Accordingly, certain information and footnote disclosures, normally included in financial statements
prepared in accordance with generally accepted accounting principles, have been condensed or omitted pursuant to such rules and
regulations. The statements presented as of September 30, 2016 and for the three and nine months ended September 30, 2016 and
2015 are unaudited. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary
for fair presentation of the financial statements have been included.
POWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
Certain
information and footnote disclosure normally included in financial statements in accordance with generally accepted accounting
principles have been omitted pursuant to the rules of the United States Securities and Exchange Commission (“SEC”).
These unaudited financial statements should be read in conjunction with our audited financial statements and accompanying notes
included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed on April 14, 2016.
4.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The
summary of significant accounting policies presented below is designed to assist in understanding the Company’s financial
statements. Such financial statements and accompanying notes are the representations of the Company’s management, who are
responsible for their integrity and objectivity. These accounting policies conform to accounting principles generally accepted
in the United States of America (“GAAP”) in all material respects, and have been consistently applied in preparing
the accompanying financial statements.
Going
Concern
Since
its inception, the Company has devoted substantially all of its efforts to business planning, research and development, recruiting
management and technical staff, acquiring operating assets and raising capital. The Company has not generated significant revenues
from its principal operations, and there is no assurance of future revenues. As of September 30, 2016, the Company had an accumulated
deficit of $3,335,105. The Company’s continuation as a going concern is dependent on its ability to generate sufficient
cash flows from operations to meet its obligations and/or obtaining additional financing from its members or other sources, as
may be required.
The
Company’s activities will necessitate significant uses of working capital beyond September 30, 2016. Additionally, the Company’s
capital requirements will depend on many factors, including the success of the Company’s continued research and development
efforts and the status of competitive products. The Company plans to continue financing its operations with cash received from
financing activities.
The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern; however, the
above condition raises substantial doubt about the Company’s ability to do so. The 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 should the Company be unable to continue as a going concern.
Use
of Estimates
In
preparing these audited financial statements, management is required to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements
and the reported amount of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Fair
Value of Financial Instruments
The
Company follows guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair
value measurements of nonfinancial items that are recognized or disclosed at fair value in the financial statements on a recurring
basis. Additionally, the Company adopted guidance for fair value measurement related to nonfinancial items that are recognized
and disclosed at fair value in the financial statements on a nonrecurring basis. The guidance establishes a fair value hierarchy
that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted
quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements
involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:
Level
1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability
to access at the measurement date.
Level
2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
or indirectly.
Level
3 inputs are unobservable inputs for the asset or liability.
POWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
The
Company monitors the market conditions and evaluates the fair value hierarchy levels at least quarterly. For any transfers in
and out of the levels of the fair value hierarchy, the Company elects to disclose the fair value measurement at the beginning
of the reporting period during which the transfer occurred.
The
Company's financial instruments consisted of cash, accounts payable and accrued liabilities, advances to stockholders, notes payable
and convertible debt. The estimated fair value of cash, accounts payable and accrued liabilities, advances to stockholders, and
notes payable approximates its carrying amount due to the short maturity of these instruments. The recognition of the derivative
values of convertible debt are based on the weighted-average Black-Scholes option pricing model.
Revenue recognition
The
Company recognizes its revenue in accordance with ASC Topic 605, “
Revenue Recognition
”, upon the delivery of
its products when: (1) delivery has occurred or services rendered; (2) persuasive evidence of an arrangement exists; (3) there
are no continuing obligations to the customer; and (4) the collection of related accounts receivable is probable.
Cash
The
Company considers all highly-liquid investments with maturities of three months or less when purchased to be cash equivalents.
The Company did not have any cash equivalents as of September 30, 2016 and December 31, 2015, respectively.
Concentration
of Credit Risk
Financial
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents.
The Company places its cash with high quality banking institutions. From time to time, the Company may maintain cash balances
at certain institutions in excess of the Federal Deposit Insurance Corporation limit. The Company has not incurred any loss from
this risk.
Property
and Equipment
Property
and equipment is stated at cost. Capital expenditures for improvements and upgrades to existing equipment are also capitalized.
Maintenance and repairs are expensed as incurred. The equipment is depreciated over 10 years on a straight-line basis. Depreciation
expense for the nine months ended September 30, 2016 and 2015 was $9,942 and $7,604, respectively.
Derivatives
and Hedging
In
April 2008, the FASB issued a pronouncement that provides guidance on determining what types of instruments or embedded features
in an instrument held by a reporting entity can be considered indexed to its own stock for the purpose of evaluating the first
criteria of the scope exception in the pronouncement on accounting for derivatives.
This
pronouncement was effective for financial statements issued for fiscal years beginning after December 15, 2008. The adoption of
these requirements can affect the accounting for many convertible instruments with provisions that protect holders from a decline
in the stock price. Each reporting period, the Company evaluates whether convertible debt to acquire stock of the Company contain
provisions that protect holders from declines in the stock price or otherwise could result in modification of the exercise price
under the respective convertible debt agreements. The Company determined that the conversion features in the convertible notes
issued during the second, third, and fourth quarters of 2014, contained such provisions and recorded such instruments as derivative
liabilities.
Long-Lived
Assets
In
accordance with ASC 350-30 (formerly SFAS No. 144,
Accounting for the Impairment or Disposal of Long-Lived Assets
),
the Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that their then
carrying values may not be recoverable. When such factors and circumstances exist, the Company compares the projected
undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against
their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value,
based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in
which the determination is made. The Company’s management currently believes there is no impairment of its long-lived
assets. There can be no assurance however, that market conditions will not change or demand for the Company’s products
under development will continue. Either of these could result in future impairment of long-lived assets.
POWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
Income
Taxes
As
a result of the implementation of certain provisions of ASC 740,
Income Taxes
, (formerly FIN 48,
Accounting for Uncertainty
in Income Taxes – An Interpretation of FASB Statement No. 109),
(“ASC 740”), which clarifies the accounting
and disclosure for uncertainty in tax positions, as defined. ASC 740 seeks to reduce the diversity in practice associated with
certain aspects of the recognition and measurement related to accounting for income taxes.
In
2010, the Company adopted Accounting for Uncertain Income Taxes under the provisions of ASC 740. ASC 740 clarifies the accounting
for income taxes by prescribing a minimum recognition threshold a tax position is required to meet before being recognized in
the financial statements. It also provides guidance on derecognition, measurement, classification, interest and penalties, accounting
in interim periods, disclosure and transition. The Company did not recognize any additional liability for unrecognized tax benefits
as a result of the adoption of ASC 740. Deferred tax assets and liabilities are recognized for the future tax consequences attributable
to temporary differences between the financial statement carrying amounts of existing assets and liabilities and their respective
tax bases. Valuation allowances are established when it is more likely than not that some or all of the deferred tax assets will
not be realized.
The
Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments
that will result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have
been recorded pursuant to ASC 740. In addition, we did not record a cumulative effect adjustment related to the adoption of ASC
740. The Company’s policy for recording interest and penalties associated with income-based tax audits is to record such
items as a component of income taxes.
The
Company’s tax provision is determined using an estimate of its annual effective tax rate using enacted tax rates expected
to apply to taxable income in the years in which they are earned, adjusted for discrete items, if any, that are taken into account
in the relevant period. Each quarter the Company updates its estimate of the annual effective tax rate, and if its estimated tax
rate changes, we make a cumulative adjustment. Income taxes payable as of September 30, 2016 and December 31, 2015 were $500 and
$500, respectively.
Loss
per Common Share
Basic
loss per common share excludes dilutive securities and is computed by dividing net loss by the weighted average number of common
shares outstanding during the period. Diluted earnings per common share reflect 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 has only incurred losses, basic and diluted loss per share is
the same. As of September 30, 2016 and December 31, 2015, there were no outstanding dilutive securities.
The
following table represents the computation of basic and diluted losses per share:
|
|
|
Nine months ended September 30, 2016
|
|
|
Nine months ended September 30, 2015
|
|
|
Three months ended September 30, 2016
|
|
|
Three months ended September 30, 2015
|
|
|
(Income) Loss available for common shareholder
|
|
$
|
(145,388
|
)
|
|
$
|
(482,514
|
)
|
|
$
|
(20,904
|
)
|
|
$
|
(204,622
|
)
|
|
Basic and fully diluted loss per share
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - basic and diluted
|
|
|
1,527,930,584
|
|
|
|
822,683,837
|
|
|
|
1,513,928,759
|
|
|
|
1,287,787,652
|
|
Net
loss per share is based upon the weighted average shares of common stock outstanding.
Recent
Accounting Pronouncements
There
are no recently issued accounting pronouncements that the Company has yet to adopt that are expected to have a material effect
on its financial position results of operations, or cash flows.
POWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
5.
PROPERTY AND EQUIPMENT - NET
Equipment
consists of the following as of September 30, 2016 and December 31, 2015:
|
|
|
September 30,
|
|
|
December 31,
|
|
|
|
|
2016
|
|
|
2015
|
|
|
Machinery and equipment
|
|
$
|
171,043
|
|
|
$
|
171,043
|
|
|
Less impairment of equipment
|
|
|
(38,484
|
)
|
|
|
(38,484
|
)
|
|
|
|
|
132,559
|
|
|
|
132,559
|
|
|
Less accumulated depreciation
|
|
|
(63,470
|
)
|
|
|
(53,528
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Total Property and Equipment
|
|
$
|
69,089
|
|
|
$
|
79,031
|
|
Equipment
is stated at cost and depreciated on a straight-line basis over the assets’ estimated useful lives: machinery and equipment
10 years. Total depreciation expense for the periods ended September 30, 2016 and 2015 was $9,942 and $7,604, respectively.
6.
LEASE
On
March 11, 2015 the Company finalized its negotiations with Farmacia Brisas del Mar, a corporation organized under the laws of
Puerto Rico (the “Lessee”), and the Company and the Lessee have entered into a five-year contract to lease power generating
equipment to Lessee based upon power consumption. In addition, the custom designed system will also provide cogeneration capabilities
with the addition of chillers to support the air conditioning demands. The agreement provides for a payment to the Company of
a monthly fee equal to the greater of a set monthly base rate or a monthly base rate plus an additional amount based on kilowatt
wattage. The agreement provides for termination by the Company only in the event of nonperformance by the Lessee unless Lessee
pays all payments due for the remainder of the term. The agreement contains representation and warranties, default provisions
and indemnification provisions typical for agreements of this type.
7.
COMMON STOCK
Stock
issued for services
On
January 19, 2016 the Company issued 3,000,000 shares to a consultant as compensation for services rendered. The Company valued
the stock at $0.0003, for a total of $900.
On
January 19, 2016 the Company issued 500,000 shares to a consultant as compensation for services rendered. The Company valued the
stock at $0.0003, for a total of $150.
On
January 25, 2016 the Company issued 30,000,000 shares to stockholder as compensation for services rendered. The Company valued
the stock at $0.0002, for a total of 6,000.
On
January 25, 2016 the Company issued 75,000,000 shares to stockholder as compensation for services rendered. The Company valued
the stock at $0.0002, for a total of $15,000.
On
January 25, 2016 the Company issued 40,000,000 shares to a consultant as compensation for services rendered. The Company valued
the stock at $0.0002, for a total of $8,000.
8.
RELATED PARTY – Promissory Note
The
Company obtained short-term financing from five different related parties from 2012 through September 30, 2016. As of September
30, 2016, 82.61% of the short-term financing is from one related party. The accrued interest payable to such related party is
$39,109. The following are breakdowns for the promissory notes issued to these five different related parties.
POWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
The
Company obtained short-term cash flow from a related party in the form of three demand notes in the aggregate principal amount
of $10,000 which have been outstanding since the year ended December 31, 2012. Two notes were amended and extended during 2014,
and one note was amended and extended during the quarter ended September 30, 2015, changing the maturity date to one year later
than what was on original notes. Note 1 was amended and extended during the quarter ended September 30, 2016, changing the maturity
date to two years later than what was on original note. The notes bear an interest rate of 7% per annum and are unsecured.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
9/30/16
|
|
|
12/31/15
|
|
|
|
|
Promissory note 1
|
|
$
|
6,000
|
|
|
|
7
|
%
|
|
$
|
1,710
|
|
|
$
|
1,395
|
|
|
9/4/2018
|
|
Promissory note 2
|
|
$
|
2,000
|
|
|
|
7
|
%
|
|
$
|
559
|
|
|
$
|
454
|
|
|
10/1/2017
|
|
Promissory note 3
|
|
$
|
2,000
|
|
|
|
7
|
%
|
|
$
|
535
|
|
|
$
|
430
|
|
|
12/3/2017
|
|
Total
|
|
$
|
10,000
|
|
|
|
|
|
|
$
|
2,804
|
|
|
$
|
2,279
|
|
|
|
The
Company obtained short-term cash flow from a related party in the form of nine demand notes in the aggregate principal amount
of $70,953 during the period from 2012 through December 31, 2014. During the quarters ended September 30, 2015, June 30, 2015
and March 31, 2015 the Company borrowed $53,000, $115,000 and $60,000, respectively, in the form of eight demand notes. The Company
repaid the principal amount of $453 during the year ended December 31, 2014, and $1,199 during the quarter ended March 31, 2015,
and $700 during the quarter ended June 30, 2015. Notes 1 through 6 were amended and extended during 2014, changing the maturity
date to one year later than what was on original notes. Notes 1 and 6 were amended again during the quarter ended September 30,
2015, changing the maturity date to one year later than what was on original notes. Note 7 was amended during the quarter ended
June 30, 2016, changing the maturity date to one year later than what was on original note. Notes 1 and 6 were amended during
the quarter ended September 30, 2016, changing the maturity dates to two years later than what was on original notes. The notes
bear an interest rate of 7% per annum and are unsecured.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
9/30/16
|
|
|
12/31/15
|
|
|
|
|
Promissory note 1
|
|
$
|
5,000
|
|
|
|
7
|
%
|
|
$
|
1,434
|
|
|
$
|
1,171
|
|
|
7/25/2018
|
|
Promissory note 2
|
|
$
|
11,000
|
|
|
|
7
|
%
|
|
$
|
3,034
|
|
|
$
|
2,456
|
|
|
10/22/2017
|
|
Promissory note 3
|
|
$
|
15,000
|
|
|
|
7
|
%
|
|
$
|
4,042
|
|
|
$
|
3,254
|
|
|
11/24/2017
|
|
Promissory note 4
|
|
$
|
102
|
|
|
|
7
|
%
|
|
$
|
28
|
|
|
$
|
23
|
|
|
10/22/2017
|
|
Promissory note 5
|
|
$
|
879
|
|
|
|
7
|
%
|
|
$
|
237
|
|
|
$
|
191
|
|
|
11/24/2017
|
|
Promissory note 6
|
|
$
|
973
|
|
|
|
7
|
%
|
|
$
|
279
|
|
|
$
|
228
|
|
|
7/25/2018
|
|
Promissory note 7
|
|
$
|
22,147
|
|
|
|
7
|
%
|
|
$
|
3,914
|
|
|
$
|
2,750
|
|
|
5/4/2017
|
|
Promissory note 8
|
|
$
|
7,000
|
|
|
|
7
|
%
|
|
$
|
886
|
|
|
$
|
518
|
|
|
12/11/2016
|
|
Promissory note 9
|
|
$
|
6,000
|
|
|
|
7
|
%
|
|
$
|
747
|
|
|
$
|
432
|
|
|
12/22/2016
|
|
Promissory note 10
|
|
$
|
25,000
|
|
|
|
7
|
%
|
|
$
|
3,030
|
|
|
$
|
1,716
|
|
|
1/8/2017
|
|
Promissory note 11
|
|
$
|
35,000
|
|
|
|
7
|
%
|
|
$
|
4,054
|
|
|
$
|
2,215
|
|
|
2/5/2017
|
|
Promissory note 12
|
|
$
|
40,000
|
|
|
|
7
|
%
|
|
$
|
4,158
|
|
|
$
|
2,056
|
|
|
4/8/2017
|
|
Promissory note 13
|
|
$
|
30,000
|
|
|
|
7
|
%
|
|
$
|
2,963
|
|
|
$
|
1,387
|
|
|
5/5/2017
|
|
Promissory note 14
|
|
$
|
45,000
|
|
|
|
7
|
%
|
|
$
|
4,013
|
|
|
$
|
1,648
|
|
|
6/24/2017
|
|
Promissory note 15
|
|
$
|
25,000
|
|
|
|
7
|
%
|
|
$
|
2,066
|
|
|
$
|
753
|
|
|
7/28/2017
|
|
Promissory note 16
|
|
$
|
15,000
|
|
|
|
7
|
%
|
|
$
|
1,174
|
|
|
$
|
385
|
|
|
8/20/2017
|
|
Promissory note 17
|
|
$
|
13,000
|
|
|
|
7
|
%
|
|
$
|
937
|
|
|
$
|
254
|
|
|
9/21/2017
|
|
Promissory note 18
|
|
$
|
5,000
|
|
|
|
7
|
%
|
|
$
|
351
|
|
|
$
|
88
|
|
|
10/13/2017
|
|
Promissory note 19
|
|
$
|
10,000
|
|
|
|
7
|
%
|
|
$
|
646
|
|
|
$
|
121
|
|
|
10/30/2017
|
|
Promissory note 20
|
|
$
|
3,000
|
|
|
|
7
|
%
|
|
$
|
167
|
|
|
$
|
10
|
|
|
12/15/2017
|
|
Promissory note 21
|
|
$
|
17,000
|
|
|
|
7
|
%
|
|
$
|
949
|
|
|
$
|
55
|
|
|
12/15/2017
|
|
Total
|
|
$
|
331,101
|
|
|
|
|
|
|
$
|
39,109
|
|
|
$
|
21,711
|
|
|
|
POWERDYNE
INTERNATIONAL, INC.
NOTES
TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
The
Company obtained short-term cash flow from a related party in the form of four demand notes in the aggregate principal amount
of $6,504 during the period from 2012 through March 31, 2013, one demand note in the principal amount of $1,780 during the quarter
ended March 31, 2016, and one demand note in the amount of $1,125 during the quarter ended June 30, 2016. Notes 1 and 2 were amended
and extended during 2014, changing the maturity date to one year later than what was on original notes. Notes 3 and 4 were amended
and extended during the quarter ended March 31, 2015, changing the maturity date to one year later than what was on original notes,
and then amended and extended during the quarter ended March 31, 2016 changing the maturity date to two years later than what
was on amended notes. The notes bear an interest rate of 7% per annum and are unsecured.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
9/30/16
|
|
|
12/31/15
|
|
|
|
|
Promissory note 1
|
|
$
|
234
|
|
|
|
7
|
%
|
|
$
|
62
|
|
|
$
|
50
|
|
|
12/5/2017
|
|
Promissory note 2
|
|
$
|
170
|
|
|
|
7
|
%
|
|
$
|
46
|
|
|
$
|
37
|
|
|
11/18/2017
|
|
Promissory note 3
|
|
$
|
4,100
|
|
|
|
7
|
%
|
|
$
|
1,048
|
|
|
$
|
833
|
|
|
2/5/2018
|
|
Promissory note 4
|
|
$
|
2,000
|
|
|
|
7
|
%
|
|
$
|
511
|
|
|
$
|
405
|
|
|
2/7/2018
|
|
Promissory note 5
|
|
$
|
1,780
|
|
|
|
7
|
%
|
|
$
|
63
|
|
|
$
|
-
|
|
|
3/29/2018
|
|
Promissory note 6
|
|
$
|
1,125
|
|
|
|
7
|
%
|
|
$
|
20
|
|
|
$
|
-
|
|
|
6/30/2018
|
|
Total
|
|
$
|
9,409
|
|
|
|
|
|
|
$
|
1,750
|
|
|
$
|
1,325
|
|
|
|
The
Company obtained short-term cash flow from a related party in the form of two demand notes in the aggregate principal amount of
$18,000 during the year of 2013. Both notes were amended and extended during the quarter ended March 31, 2015, changing the maturity
date to one year later than what was on original notes, and amended and extended during the quarter ended March 31, 2016 changing
the maturity date to two years later than what was on amended notes. The notes bear an interest rate of 7% per annum and are unsecured.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
9/30/16
|
|
|
12/31/15
|
|
|
|
|
Promissory note 1
|
|
$
|
10,000
|
|
|
|
7
|
%
|
|
$
|
2,526
|
|
|
$
|
2,000
|
|
|
2/21/2018
|
|
Promissory note 2
|
|
$
|
8,000
|
|
|
|
7
|
%
|
|
$
|
1,982
|
|
|
$
|
1,562
|
|
|
3/18/2018
|
|
Total
|
|
$
|
18,000
|
|
|
|
|
|
|
$
|
4,508
|
|
|
$
|
3,562
|
|
|
|
The
Company obtained short-term cash flow from a related party in the form of one demand note in the principal amount of $6,000 during
the year of 2014, three demand notes in the aggregate principal amount of $9,700 during the quarter ended March 31, 2016, one
demand note in the principal amount of $11,500 during the quarter ended June 30, 2016, and one demand note in the principal amount
of $5,100 during the quarter ended September 30, 2016. The notes bears an interest rate of 7% per annum and is unsecured.
|
Note
|
|
Principal
|
|
|
Rate
|
|
|
Accrued interest
|
|
|
Maturity
|
|
|
|
|
|
|
|
|
|
9/30/16
|
|
|
12/31/15
|
|
|
|
|
Promissory note 1
|
|
$
|
6,000
|
|
|
|
7
|
%
|
|
$
|
906
|
|
|
$
|
590
|
|
|
8/6/2018
|
|
Promissory note 2
|
|
$
|
2,500
|
|
|
|
7
|
%
|
|
$
|
130
|
|
|
$
|
-
|
|
|
1/4/2018
|
|
Promissory note 3
|
|
$
|
4,200
|
|
|
|
7
|
%
|
|
$
|
168
|
|
|
$
|
-
|
|
|
2/5/2018
|
|
Promissory note 4
|
|
$
|
3,000
|
|
|
|
7
|
%
|
|
$
|
112
|
|
|
$
|
-
|
|
|
3/20/2018
|
|
Promissory note 5
|
|
$
|
11,500
|
|
|
|
7
|
%
|
|
$
|
203
|
|
|
$
|
-
|
|
|
6/30/2018
|
|
Promissory note 6
|
|
$
|
5,100
|
|
|
|
7
|
%
|
|
$
|
53
|
|
|
$
|
-
|
|
|
8/8/2018
|
|
Total
|
|
$
|
32,300
|
|
|
|
|
|
|
$
|
1,571
|
|
|
$
|
590
|
|
|
|
During
the nine months ended September 30, 2016 the total amount of related party loan proceeds was $29,205. The total interest accrued
on related party loans at September 30, 2016 and December 31, 2015 was $49,742 and $29,467, respectively.
From
time to time, the Company advances amounts to stockholders, as well as receives payments from stockholders in the form of
cash and/or out-of-pocket expenditures for the benefit of the Company, which are business in nature. The balance of advances
to stockholder as of September 30, 2016 and December 31, 2015 was $-0- and $11,321, respectively. Amounts accrued, but not
yet paid as due to related party at September 30, 2016 and December 31, 2015 was $25,000 and $25,000,
respectively.
10.
COMMITMENTS AND CONTINGENCIES
Litigation
There
are no pending, threatened or actual legal proceedings in which the Company or any subsidiary is a party.