0001393905-19-000307.txt : 20191108 0001393905-19-000307.hdr.sgml : 20191108 20191108162330 ACCESSION NUMBER: 0001393905-19-000307 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 31 CONFORMED PERIOD OF REPORT: 20190930 FILED AS OF DATE: 20191108 DATE AS OF CHANGE: 20191108 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NORTHSTAR ELECTRONICS INC CENTRAL INDEX KEY: 0001082027 STANDARD INDUSTRIAL CLASSIFICATION: RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663] IRS NUMBER: 330803434 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55934 FILM NUMBER: 191204363 BUSINESS ADDRESS: STREET 1: 1000-355 BURRARD ST. CITY: VANCOUVER STATE: A1 ZIP: V6C 2G8 BUSINESS PHONE: 778-838-3313 MAIL ADDRESS: STREET 1: 1000-355 BURRARD ST. CITY: VANCOUVER STATE: A1 ZIP: V6C 2G8 FORMER COMPANY: FORMER CONFORMED NAME: SCIENTIFIC TECHNOLOGIES INC /DE/ DATE OF NAME CHANGE: 19990317 10-Q 1 neik_10q.htm QUARTERLY REPORT 10Q

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES

EXCHANGE ACT OF 1934

 

For the quarterly period ended: September 30, 2019

 

[ ] TRANSITION REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from: ______ to ______

 

333-90031

Commission file number

 

Northstar Electronics, Inc.

Exact name of small business issuer as specified in its charter

 

Delaware

State or other jurisdiction of organization

 

#33-0803434

IRS Employee incorporation or Identification No.

 

355 Burrard Street, Suite 1000

Vancouver, BC, Canada  V6C 2G8

Address of principal executive offices

 

(778) 838-3313

Issuer's telephone number

 

Not Applicable

Former name, former address and former fiscal year, if changed since last report

 

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes[X]   No[  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer” and “large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

 

[  ] Large accelerated filer [  ] Accelerated filer   [X] Non-accelerated filer


 


 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes [  ]   No [X]

 

Applicable only to issuers involved in bankruptcy proceedings during the preceding five years:

 

Check whether the registrant filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.  Yes [  ]   No [  ]   Not Applicable

 

Applicable only to corporate issuers

 

State the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date. Common shares as of November 8, 2019: 127,838,231

 

Transitional Small Business Disclosure Format (check one):  Yes [  ]   No [X]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


2


 

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

4

Item 1. Financial Statements

4

Condensed Consolidated Balance Sheets

4

Condensed Consolidated Statements of Operations

5

Condensed Consolidated Statement of Changes in Stockholders’ Deficit

6

Condensed Consolidated Statements of Cash Flows

7

Notes to the Condensed Consolidated Financial Statements

8

Item 2. Management's Discussion and Analysis or Plan of Operation.

11

Item 3. Controls and Procedures

13

PART II - OTHER INFORMATION

14

Item 1. Legal Proceedings.

14

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

14

Item 3. Defaults Upon Senior Securities.

14

Item 4. Submission of Matters to a Vote of Security Holders.

14

Item 5. Other Information.

14

Item 6. Exhibits.

14

SIGNATURES

15

 

 

 

 

 

 

 

 

 

 

 

 


3


 

PART I - FINANCIAL INFORMATION

 

Item 1. Condensed Consolidated Financial Statements

 

 

NORTHSTAR ELECTRONICS, INC.

Condensed Consolidated Balance Sheets

U.S. Dollars

 

 

September 30

2019

 

December 31

2018

 

unaudited

 

audited

Assets

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

Cash

$

53,545

 

$

170,831

 

 

 

 

 

 

 

$

53,545

 

$

170,831

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

Current

 

 

 

 

 

Accounts payable and accrued liabilities

$

1,155,457

 

$

1,110,456

Loans payable

 

442,916

 

 

442,916

Due to director

 

588,019

 

 

521,074

Legal liability

 

3,015,012

 

 

2,855,868

 

 

5,201,404

 

 

4,930,314

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

Authorized:

 

 

 

 

 

200,000,000 Common shares with a par value of $0.0001 each

 

 

 

 

 

20,000,000 Preferred shares with a par value of $0.0001 each

 

 

 

 

 

Issued and outstanding:

 

 

 

 

 

127,838,231 Common shares (127,838,231 - December 31, 2018)

 

12,784

 

 

12,784

597,716 Preferred shares (597,716 - December 31, 2018)

 

404,299

 

 

404,299

Additional paid-in capital

 

8,608,875

 

 

8,608,875

Accumulated deficit

 

(14,173,817)

 

 

(13,785,441)

 

 

(5,147,859)

 

 

(4,759,483)

 

 

 

 

 

 

 

$

53,545

 

$

170,831

 

 

Nature of operations and going concern (Note 1)

 

 

 

 

 

 

See notes to the condensed consolidated financial statements


4


 

NORTHSTAR ELECTRONICS, INC.

Condensed Consolidated Statements of Operations

Three and Nine Months Ended September 30, 2019 and 2018

Unaudited

U.S. Dollars

 

 

Three Months

 

Nine Months

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 Management

$

30,000

 

$

30,000

 

$

90,000

 

$

90,000

 Consulting fees

 

3,550

 

 

10,000

 

 

3,550

 

 

10,000

 Administration

 

15,000

 

 

15,000

 

 

45,750

 

 

45,000

 Professional fees

 

2,042

 

 

5,625

 

 

15,111

 

 

21,375

 Foreign exchange

       (gain) loss

 

(36,382)

 

 

50,523

 

 

91,107

 

 

(90,850)

 Engineering and

       Development

 

15,125

 

 

28,000

 

 

37,750

 

 

88,000

 Investor relations

 

-

 

 

695

 

 

6,895

 

 

1,945

 Marketing and sales

 

-

 

 

12,000

 

 

-

 

 

36,000

 Office and

      Administration

 

5,774

 

 

4,405

 

 

25,718

 

 

25,094

Interest expense

 

24,165

 

 

25,100

 

 

72,495

 

 

75,809

Total expenses

 

59,274

 

 

181,348

 

 

388,376

 

 

302,373

   

 

 

 

 

 

 

 

 

 

 

 

Net loss for the period

$

(59,274)

 

$

(181,348)

 

$

(388,376)

 

$

(302,373)

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted gain

(loss) per common share

$

(0.00)

 

$

(0.00)

 

$

(0.00)

 

$

(0.00)

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number

of shares outstanding

 

127,838,231

 

 

103,292,315

 

 

127,838,231

 

 

100,167,910

 

 

 

 

 

 

 

 

 

 

See notes to the condensed consolidated financial statements


5


 

NORTHSTAR ELECTRONICS, INC.

Condensed Consolidated Statement of Changes in Stockholders’ Deficit

Nine Months Ended September 30, 2019

Unaudited

U.S. Dollars

 

 

Number

of

Shares

 

Par

Value

 

Additional

Paid-In

Capital

 

Accumulated

Deficit

 

Preferred

Shares

 

Total

Stockholders’

Deficit

 

 

 

 

 

 

 

 

 

 

 

 

Balance December 31, 2018

127,838,231

 

$ 12,784

 

$ 8,608,875

 

$ (13,785,441)

 

$ 404,299

 

$ (4,759,483)

Net loss

-

 

-

 

-

 

(388,376)

 

-

 

(388,376)

Balance September 30, 2019

127,838,231

 

$ 12,784

 

$ 8,608,875

 

$ (14,173,817)

 

$ 404,299

 

$ (5,147,859)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See notes to the condensed consolidated financial statements


6


 

NORTHSTAR ELECTRONICS, INC.

Condensed Consolidated Statements of Cash Flows

Nine Months Ended September 30, 2019 and 2018

Unaudited

U.S. Dollars

 

 

2019

 

2018

 

 

 

 

 

 

Operating Activities

 

 

 

 

 

 Net loss

$

(388,376)

 

$

(302,373)

 Items not involving cash

 

 

 

 

 

   Foreign exchange loss (gain)

 

86,649

 

 

(92,953)

   Non-cash interest

 

72,495

 

 

75,809

   Non-cash consulting

 

-

 

 

10,000

 Changes in non-cash working capital

 

 

 

 

 

   Changes in operating assets and liabilities

 

45,000

 

 

169,000

Net cash used in operating activities

 

(184,232)

 

 

(140,517)

 

 

 

 

 

 

Financing Activities

 

 

 

 

 

 Issuance of common shares for cash (net of costs)

 

-

 

 

33,440

 Loans payable

 

-

 

 

8,625

 Increases in due to directors

 

66,945

 

 

82,985

Net cash provided by financing activities

 

66,945

 

 

125,050

 

 

 

 

 

 

Decrease in cash

 

(117,286)

 

 

(15,467)

Cash, beginning

 

170,831

 

 

16,438

 

 

 

 

 

 

Cash, ending

$

53,545

 

$

971

 

 

 

 

 

 

Non-cash Transactions

 

 

 

 

 

 Shares issued for services

$

-

 

$

10,000

 

$

-

 

$

10,000

 

 

 

 

 

 

 

 

 

 

See notes to the condensed consolidated financial statements


7


 

NORTHSTAR ELECTRONICS, INC.

Notes to Condensed Consolidated Financial Statements

Nine Months Ended September 30, 2019

Unaudited

U.S. Dollars

 

1. NATURE OF OPERATIONS AND ABILITY TO CONTINUE AS A GOING CONCERN

 

Northstar Electronics, Inc. (the “Company”) was incorporated on May 11, 1998 in the state of Delaware. The Company is doing research and development on single engine aircrafts for business use.

 

The Company's business activities are conducted in Canada.  However, the financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) with all figures translated into United States dollars for financial reporting purposes.

 

These unaudited consolidated financial statements have been prepared by management in accordance with GAAP for interim financial information, are condensed and do not include all disclosures required for annual financial statements. The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to the Company’s audited consolidated financial statements filed as part of the Company’s December 31, 2018 Form 10-K.

 

The results of operations for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the entire fiscal year. The accompanying interim consolidated financial statements have been prepared assuming the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the nine months ended September 30, 2019 the Company incurred a net loss of $388,376 and at September 30, 2019 had a working capital deficiency of $5,147,859.

 

Management has undertaken initiatives for the Company to continue as a going concern; for example: the Company is attempting to secure an equity financing in the short term. Management is unable to predict the results of its initiatives at this time. These factors raise substantial doubt about the ability of the Company to continue as a going concern.

 

Should management be unsuccessful in its initiative to finance its operations, the Company’s ability to continue as a going concern is not certain. These financial statements do not give effect to any adjustments to the amounts and classifications of assets and liabilities which might be necessary should the Company be unable to continue its operations as a going concern.


8


 

2. SHARE CAPITAL

 

COMMON STOCK

 

The Company issued nil shares of common stock during the nine months ended September 30, 2019.

 

WARRANTS

 

 

Exercise

 

Number of Warrants

Expiry Date

Price

 

2019

 

2018

Open (1)

$ 0.50

 

389,170

 

389,170

Open (1)

$ 0.75

 

389,170

 

389,170

Open (2)

$ 0.25

 

51,600

 

51,600

April 20, 2019

$ 0.04

 

-

 

2,500,000

May 18, 2019

$ 0.05

 

-

 

1,495,000

September 30, 2020

$ 0.05

 

13,134,208

 

13,134,208

Total outstanding and exercisable

 

 

13,964,148

 

19,786,648

Weighted average outstanding life of

warrants (years)

 

 

0.94 - Open

 

1.35 -  Open

 

(1)These warrants were issued in 2005. The expiry date of the warrants are six months after the closing bid price for the common stock of the Company has been over $0.65 and $1.00 per share respectively for five consecutive trading days. 

 

(2)These warrants were issued in 2008 and they do not have an expiry date.  

 

3. LEGAL LIABILITY

 

During 2000 to 2008, the Company’s former subsidiaries Northstar Technical Inc. (“NTI”) and Northstar Network Ltd. (“NNL”) received funding from Atlantic Canada Opportunities Agency (“ACOA”) to fund their projects. In accordance with agreements signed between NTI, NNL and the Company, the Company was jointly and severally liable for the obligations. In 2013, ACOA filed claims against NTI, NNL and the Company for repayments of advances due to events of default. The advance and interests ACOA claims totaled CAD$3,079,475. Further, the claim amount bears a daily interest of CAD$358 from February 15, 2013 to settlement. During the nine months ended September 30, 2019, the Company recorded interest expenses of $72,495 (2018: $75,809).

 

4. RELATED PARTY TRANSACTIONS

 

During the nine months ended September 30, 2019, the Company accrued management fees payable of $90,000 (2018: $90,000) in total to a director of the company.

 

At September 30, 2019, there is a balance of $588,019 (December 31, 2018: $521,074) owing to a director of the Company for management fees and expense reimbursement.  The amount is included in current liabilities.


9


 

5. NEW ACCOUNTING PRONOUNCEMENTS

 

Management does not believe that any recently issued but not yet effective accounting pronouncements if currently adopted would have a material effect on the accompanying consolidated financial statements.

 

6. SUBSEQUENT EVENT

 

There have been no transactions outside of normal day to day activities subsequent to September 30, 2019.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


10


 

Item 2. Management's Discussion and Analysis or Plan of Operation.

 

The following discussion should be read in conjunction with the accompanying unaudited consolidated financial information for the three and nine month periods ended September 30, 2019 and September 30, 2018 prepared by management and the audited consolidated financial statements for the twelve months ended December 31, 2018 as presented in the Company’s Form 10K and amendments as filed.

 

Special Note Regarding Forward Looking Statements

Certain statements in this report and elsewhere (such as in other filings by the Company with the Securities and Exchange Commission (“SEC”), press releases, presentations by the Company of its management and oral statements) may constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” and “should,” and variations of these words and similar expressions, are intended to identify these forward-looking statements. Actual results may materially differ from any forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures and constantly changing technology and market acceptance of the Company's products and services. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

 

The Company’s Services

 

We are now moving in a new direction whereby we intend to build our own systems in the civilian aviation sector. We believe that this affords improved control over the business outcomes compared to the contract manufacturing business.

 

The Company is working to purchase worldwide rights to a single engine Turbo Prop airplane with industrial applications from a subsidiary of a large international aerospace company. If successful, we intend to manufacture the airplanes and market them internationally and provide Maintenance, Repair and Overhaul (MRO) services in close proximity to customers. The main applications are Agricultural, Rapid Response Forest Fire Fighting and, most recently, Cloud Seeding. The Company’s wholly owned subsidiary, National Five Holding Ltd, is a 95% shareholder of Northstar Sealand Enterprises Ltd (NSEL). The constituent parts of NSEL have experience in working on certified commercial aircraft and government military contracts, and have access to an established aircraft parts manufacturing facility.

 

Results of Operations

 

Comparison of the three and nine months ended September 30, 2019 with the three and nine months ended September 30, 2018:

 

Gross revenues from all sources for the three month period ended September 30, 2019 were $0 compared to $0 in the comparative prior three month period. Gross revenues from all sources for the nine month period ended September 30, 2019 were $0 compared to $0 in the comparative prior nine month period. In prior years the Company earned modest consulting fees as the Company continued to reorganize its business.


11


 

There was a net loss for the three month period ended September 30, 2019 of $59,274 compared to a net loss of $181,348 for the three months ended September 30, 2018 due to a non cash recovery of foreign exchange. The net operations were otherwise comparable to the prior year as the Company continued to reduce office and administration expenses as well as engineering and marketing expenses. The effects on our operations were minimal and we were able to make meaningful advances in our efforts to purchase the rights to the airplane.

 

Comparison of Financial Position at September 30, 2019 with December 31, 2018

 

The Company’s working capital deficiency increased at September 30, 2019 to $5,147,859 with current liabilities of $5,201,404 which are in excess of current assets of $53,545. At December 31, 2018 the Company had a working capital deficiency of $4,759,483. See also legal liabilities, note 3 to the financial statements for the nine months ended September 30, 2019.

 

Critical Accounting Policies and Estimates

 

We have adopted various accounting policies that govern the application of accounting principles generally accepted in the United States of America in the preparation of our financial statements. Our significant accounting policies are described in the footnotes to our annual financial statements at December 31, 2018. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.

 

Although these estimates are based on our knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Certain accounting policies involve significant judgments and assumptions by us and have a material impact on our financial condition and results. Management believes its critical accounting policies reflect its most significant estimates and assumptions used in the presentation of our financial statements. Our critical accounting policies include revenue recognition, accounting for stock based compensation and the evaluation of the recoverability of long-lived and intangible assets. We do not have off-balance sheet arrangements, financings or other relationships with unconsolidated entities or other persons, also known as “special purpose entities”.

 

Liquidity and Capital Resources

 

Cash outflow for the nine months ended September 30, 2019 was $117,286 compared to an outflow of cash of $15,467 in the comparative prior nine months ended September 30, 2018. During the current period, the Company received $nil ($33,440 in the comparative prior period) from equity funding leaving cash on hand at September 30, 2019 of $53,545 compared to cash on hand of $971 at September 30, 2018. Until the Company receives revenues from new contracts it will be dependent upon equity and loan financings to compensate for the outflow of cash anticipated from operations.

 

At this time, no commitment for funding has been made to the Company.

 

The Company’s continued operations are dependent upon obtaining revenues from outside sources or raising additional funds through debt or equity financing.


12


 

Item 3. Controls and Procedures

 

(a)  Evaluation of disclosure controls and procedures

 

Based on the evaluation of the Company's disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934) as of the date of this Quarterly Report on Form 10-Q, our chief executive officer and chief financial officer has concluded that our disclosure controls and procedures are designed to ensure that the information we are required to disclose in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and are operating in an effective manner. The disclosure controls were effective at September 30, 2019.

 

(b)  Changes in internal controls

 

There were no changes in our internal controls or in other factors that could affect these controls subsequent to the date of their most recent evaluation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


13


 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

No change since previous filing.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

Options Granted: Nil

 

Warrants Issued: Nil

 

Common Stock Issued:  Nil

 

During the nine months ended September 30, 2018, the Company issued 26,268,416 shares of common stock for cash of $490,100.

 

Preferred Stock Subscribed: Nil

 

Item 3. Defaults Upon Senior Securities.

 

No change since previous filing.

 

Item 4. Submission of Matters to a Vote of Security Holders.

 

No change since previous filing.

 

Item 5. Other Information.

 

No change since previous filing.

 

Item 6. Exhibits.

 

No change since previous filing.

 

 

 

 

 


14


 

SIGNATURES

 

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

November 8, 2019

Northstar Electronics, Inc.

 

(Registrant)

 

 

 

By: /s/ Wilson Russell

 

Wilson Russell, PhD, President and Chief Financial Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


15

EX-31 2 neik_ex31.htm CERTIFICATION ex-31

EXHIBIT 31

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

UNDER

SECTION 302 OF THE SARBANES-OXLEY ACT


I, Wilson Russell certify that:


1.  I have reviewed this Quarterly Report on Form 10-Q of Northstar Electronics, Inc. for the quarter ended September 30, 2019;


2.  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3.  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4.  The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


(a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


(b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


(c)  Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


(d)  Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


5.  The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors (or persons performing the equivalent functions):


(a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

  

(b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: November 8, 2019

 

/s/ Wilson Russell

 

 

Wilson Russell,

 

 

Chief Executive Officer and

Chief Financial Officer




EX-32 3 neik_ex32.htm CERTIFICATION ex-32



EXHIBIT 32


CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with this Quarterly Report of Northstar Electronics, Inc. (the “Registrant”) on Form 10-Q for the quarter ended September 30, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned Chief Executive Officer of the Registrant, certifies, in accordance with 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:


(1)

The Report, to which this certification is attached as Exhibit 32, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant

 

Dated: November 8, 2019

  

/s/ Wilson Russell  

  

  

Wilson Russell  

  

  

Chief Executive Officer and

Chief Financial Officer

  
















EX-101.INS 4 neik-20190930.xml 0001082027 --12-31 NORTHSTAR ELECTRONICS INC Non-accelerated Filer Yes Yes false true false 10-Q 2019-09-30 333-90031 DE 33-0803434 355 Burrard Street, Suite 1000 Vancouver BC CA V6C 2G8 778 838-3313 127838231 false 2019 Q3 true false 53545 170831 1155457 1110456 442916 442916 2855868 5201404 4930314 20000000 20000000 0.0001 0.0001 597716 597716 597716 597716 404299 404299 200000000 200000000 0.0001 0.0001 127838231 127838231 127838231 127838231 12784 12784 8608875 8608875 -14173817 -13785441 -5147859 -4759483 53545 170831 30000 30000 90000 90000 3550 10000 3550 10000 15000 15000 45750 45000 2042 5625 15111 21375 -36382 50523 91107 -90850 15125 28000 37750 88000 0 695 6895 1945 0 12000 0 36000 5774 4405 25718 25094 24165 25100 59274 181348 388376 302373 -59274 -181348 -302373 -0.00 -0.00 -0.00 -0.00 127838231 103292315 127838231 100167910 127838231 12784 8608875 -13785441 404299 -4759483 0 0 -388376 0 127838231 12784 8608875 -14173817 404299 -5147859 -388376 -302373 -86649 92953 -72495 -75809 0 -10000 45000 169000 -184232 -140517 0 33440 0 8625 66945 82985 66945 125050 -117286 -15467 170831 16438 53545 971 0 10000 <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>1. NATURE OF OPERATIONS AND ABILITY TO CONTINUE AS A GOING CONCERN</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Northstar Electronics, Inc. (the &#147;Company&#148;) was incorporated on May 11, 1998 in the state of Delaware. The Company is doing research and development on single engine aircrafts for business use.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company's business activities are conducted in Canada.&#160; However, the financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (&#147;GAAP&#148;) with all figures translated into United States dollars for financial reporting purposes.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>These unaudited consolidated financial statements have been prepared by management in accordance with GAAP for interim financial information, are condensed and do not include all disclosures required for annual financial statements. The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to the Company&#146;s audited consolidated financial statements filed as part of the Company&#146;s December 31, 2018 Form 10-K.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The results of operations for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the entire fiscal year. The accompanying interim consolidated financial statements have been prepared assuming the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the nine months ended September 30, 2019 the Company incurred a net loss of $388,376 and at September 30, 2019 had a working capital deficiency of $5,147,859.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Management has undertaken initiatives for the Company to continue as a going concern; for example: the Company is attempting to secure an equity financing in the short term. Management is unable to predict the results of its initiatives at this time. These factors raise substantial doubt about the ability of the Company to continue as a going concern.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Should management be unsuccessful in its initiative to finance its operations, the Company&#146;s ability to continue as a going concern is not certain. These financial statements do not give effect to any adjustments to the amounts and classifications of assets and liabilities which might be necessary should the Company be unable to continue its operations as a going concern.</p> -388376 -5147859 <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>2. SHARE CAPITAL</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>COMMON STOCK</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>The Company issued nil shares of common stock during the nine months ended September 30, 2019.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><u>WARRANTS</u></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="99%" style='border-collapse:collapse'> <tr align="left"> <td width="291" valign="bottom" style='width:217.95pt;border:none;border-top:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:71.2pt;border:none;border-top:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>Exercise</b></p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-top:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="230" colspan="3" valign="bottom" style='width:172.65pt;border-top:solid black 1.0pt;border-left:none;border-bottom:solid black 1.0pt;border-right:none;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>Number of Warrants</b></p> </td> </tr> <tr align="left"> <td width="291" valign="bottom" style='width:217.95pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'><b>Expiry Date</b></p> </td> <td width="95" valign="bottom" style='width:71.2pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>Price</b></p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>2019</b></p> </td> <td width="18" valign="bottom" style='width:13.4pt;border-top:solid black 1.0pt;border-left:none;border-bottom:solid black 1.0pt;border-right:none;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;border-top:solid black 1.0pt;border-left:none;border-bottom:solid black 1.0pt;border-right:none;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>2018</b></p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>Open (1)</p> </td> <td width="95" valign="bottom" style='width:71.2pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.50</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>389,170</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>389,170</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>Open (1)</p> </td> <td width="95" valign="bottom" style='width:71.2pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.75</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>389,170</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>389,170</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>Open (2)</p> </td> <td width="95" valign="bottom" style='width:71.2pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.25</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>51,600</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>51,600</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>April 20, 2019</p> </td> <td width="95" valign="bottom" style='width:71.2pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.04</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2,500,000</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>May 18, 2019</p> </td> <td width="95" valign="bottom" style='width:71.2pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.05</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,495,000</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>September 30, 2020</p> </td> <td width="95" valign="bottom" style='width:71.2pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.05</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>13,134,208</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>13,134,208</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>Total outstanding and exercisable</p> </td> <td width="95" valign="bottom" style='width:71.2pt;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>13,964,148</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>19,786,648</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>Weighted average outstanding life of</p> <p style='margin:0in;margin-bottom:.0001pt'>warrants (years)</p> </td> <td width="95" valign="bottom" style='width:71.2pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.94 - Open</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1.35 -&#160; Open</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:1.0in;text-align:justify;text-indent:-.5in'>(1)&#160;&#160;&#160;&#160;&#160;&#160;&#160; These warrants were issued in 2005. The expiry date of the warrants are six months after the closing bid price for the common stock of the Company has been over $0.65 and $1.00 per share respectively for five consecutive trading days.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:1.0in;text-align:justify;text-indent:-.5in'>(2)&#160;&#160;&#160;&#160;&#160;&#160;&#160; These warrants were issued in 2008 and they do not have an expiry date. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="99%" style='border-collapse:collapse'> <tr align="left"> <td width="291" valign="bottom" style='width:217.95pt;border:none;border-top:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:71.2pt;border:none;border-top:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>Exercise</b></p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-top:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="230" colspan="3" valign="bottom" style='width:172.65pt;border-top:solid black 1.0pt;border-left:none;border-bottom:solid black 1.0pt;border-right:none;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>Number of Warrants</b></p> </td> </tr> <tr align="left"> <td width="291" valign="bottom" style='width:217.95pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'><b>Expiry Date</b></p> </td> <td width="95" valign="bottom" style='width:71.2pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>Price</b></p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>2019</b></p> </td> <td width="18" valign="bottom" style='width:13.4pt;border-top:solid black 1.0pt;border-left:none;border-bottom:solid black 1.0pt;border-right:none;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;border-top:solid black 1.0pt;border-left:none;border-bottom:solid black 1.0pt;border-right:none;padding:0in 6.0pt 0in 6.0pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'><b>2018</b></p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>Open (1)</p> </td> <td width="95" valign="bottom" style='width:71.2pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.50</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>389,170</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>389,170</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>Open (1)</p> </td> <td width="95" valign="bottom" style='width:71.2pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.75</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>389,170</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>389,170</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>Open (2)</p> </td> <td width="95" valign="bottom" style='width:71.2pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.25</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>51,600</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>51,600</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>April 20, 2019</p> </td> <td width="95" valign="bottom" style='width:71.2pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.04</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2,500,000</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>May 18, 2019</p> </td> <td width="95" valign="bottom" style='width:71.2pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.05</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1,495,000</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>September 30, 2020</p> </td> <td width="95" valign="bottom" style='width:71.2pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>$ 0.05</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>13,134,208</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>13,134,208</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>Total outstanding and exercisable</p> </td> <td width="95" valign="bottom" style='width:71.2pt;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>13,964,148</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;border:none;border-bottom:solid black 1.0pt;background:#DBE5F1;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>19,786,648</p> </td> </tr> <tr align="left"> <td width="291" valign="top" style='width:217.95pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p style='margin:0in;margin-bottom:.0001pt'>Weighted average outstanding life of</p> <p style='margin:0in;margin-bottom:.0001pt'>warrants (years)</p> </td> <td width="95" valign="bottom" style='width:71.2pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="110" valign="bottom" style='width:1.15in;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.94 - Open</p> </td> <td width="18" valign="bottom" style='width:13.4pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="102" valign="bottom" style='width:76.45pt;border:none;border-bottom:solid black 1.0pt;padding:0in 6.0pt 0in 6.0pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>1.35 -&#160; Open</p> </td> </tr> </table> </div> 0.50 389170 389170 0.75 389170 389170 0.25 51600 51600 0.04 2500000 0.05 1495000 0.05 13134208 13134208 13964148 19786648 <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>3. LEGAL LIABILITY</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>During 2000 to 2008, the Company&#146;s former subsidiaries Northstar Technical Inc. (&#147;NTI&#148;) and Northstar Network Ltd. (&#147;NNL&#148;) received funding from Atlantic Canada Opportunities Agency (&#147;ACOA&#148;) to fund their projects. In accordance with agreements signed between NTI, NNL and the Company, the Company was jointly and severally liable for the obligations. In 2013, ACOA filed claims against NTI, NNL and the Company for repayments of advances due to events of default. The advance and interests ACOA claims totaled CAD$3,079,475 ($3,015,012). Further, the claim amount bears a daily interest of CAD$358 from February 15, 2013 to settlement. During the nine months ended September 30, 2019, the Company recorded interest expenses of $72,495 (2018: $75,809).</p> 3015012 72495 75809 <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>4. RELATED PARTY TRANSACTIONS</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>During the nine months ended September 30, 2019, the Company accrued management fees payable of $90,000 (2018: $90,000) in total to a director of the company.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>At September 30, 2019, there is a balance of $588,019 (December 31, 2018: $521,074) owing to a director of the Company for management fees and expense reimbursement. The amount is included in current liabilities.</p> 90000 90000 588019 521074 <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>5. NEW ACCOUNTING PRONOUNCEMENTS</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>Management does not believe that any recently issued but not yet effective accounting pronouncements if currently adopted would have a material effect on the accompanying consolidated financial statements.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>6. SUBSEQUENT EVENT</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>There have been no transactions outside of normal day to day activities subsequent to September 30, 2019.</p> 0001082027 2019-01-01 2019-09-30 0001082027 2019-09-30 0001082027 2019-11-08 0001082027 2018-12-31 0001082027 2019-07-01 2019-09-30 0001082027 2018-07-01 2018-09-30 0001082027 2018-01-01 2018-09-30 0001082027 us-gaap:CommonStockMember 2019-01-01 2019-09-30 0001082027 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-09-30 0001082027 us-gaap:RetainedEarningsMember 2019-01-01 2019-09-30 0001082027 us-gaap:PreferredStockMember 2019-01-01 2019-09-30 0001082027 us-gaap:CommonStockMember 2018-12-31 0001082027 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0001082027 us-gaap:RetainedEarningsMember 2018-12-31 0001082027 us-gaap:PreferredStockMember 2018-12-31 0001082027 us-gaap:CommonStockMember 2019-09-30 0001082027 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0001082027 us-gaap:RetainedEarningsMember 2019-09-30 0001082027 us-gaap:PreferredStockMember 2019-09-30 0001082027 2017-12-31 0001082027 2018-09-30 0001082027 fil:WarrantsOpen1Member 2019-09-30 0001082027 fil:WarrantsOpen1Member 2018-12-31 0001082027 fil:WarrantsOpen2Member 2019-09-30 0001082027 fil:WarrantsOpen2Member 2018-12-31 0001082027 fil:WarrantsOpen3Member 2019-09-30 0001082027 fil:WarrantsOpen3Member 2018-12-31 0001082027 fil:WarrantsIssuedApril202019Member 2019-09-30 0001082027 fil:WarrantsIssuedApril202019Member 2018-12-31 0001082027 fil:WarrantsIssuedExpireMay182019Member 2019-09-30 0001082027 fil:WarrantsIssuedExpireMay182019Member 2018-12-31 0001082027 fil:WarrantsIssuedExpireSept302020Member 2019-09-30 0001082027 fil:WarrantsIssuedExpireSept302020Member 2018-12-31 0001082027 fil:AccruedManagementFeesToADirectorMember 2019-01-01 2019-09-30 0001082027 fil:AccruedManagementFeesToADirectorMember 2018-01-01 2018-09-30 iso4217:USD xbrli:shares iso4217:USD xbrli:shares EX-101.SCH 5 neik-20190930.xsd 000080 - Disclosure - Share Capital Disclosure link:presentationLink link:definitionLink link:calculationLink 000100 - Disclosure - Related Party Transactions Disclosure link:presentationLink link:definitionLink link:calculationLink 000040 - Statement - Condensed Consolidated Statements of Operations link:presentationLink link:definitionLink link:calculationLink 000060 - Statement - Condensed Consolidated Statements of Cash Flows link:presentationLink link:definitionLink link:calculationLink 000150 - Disclosure - Share Capital Disclosure: Schedule of Stockholders' Equity Note, Warrants (Details) link:presentationLink link:definitionLink link:calculationLink 000140 - Disclosure - Nature of Operations and Ability to Continue as a Going Concern (Details) link:presentationLink link:definitionLink link:calculationLink 000160 - Disclosure - Legal Liability Disclosure (Details) link:presentationLink link:definitionLink link:calculationLink 000070 - Disclosure - Nature of Operations and Ability to Continue as a Going Concern link:presentationLink link:definitionLink link:calculationLink 000110 - Disclosure - New Accounting Pronouncements link:presentationLink link:definitionLink link:calculationLink 000050 - Statement - Condensed Consolidated Statement of Changes in Stockholders' Deficit link:presentationLink link:definitionLink link:calculationLink 000030 - Statement - Condensed Consolidated Balance Sheets - Parenthetical link:presentationLink link:definitionLink link:calculationLink 000010 - Document - Document and Entity Information link:presentationLink link:definitionLink link:calculationLink 000120 - Disclosure - Subsequent Event link:presentationLink link:definitionLink link:calculationLink 000090 - Disclosure - Legal Liability Disclosure link:presentationLink link:definitionLink link:calculationLink 000170 - Disclosure - Related Party Transactions Disclosure (Details) link:presentationLink link:definitionLink link:calculationLink 000130 - Disclosure - Share Capital Disclosure: Schedule of Stockholders' Equity Note, Warrants (Tables) link:presentationLink link:definitionLink link:calculationLink 000020 - Statement - Condensed Consolidated Balance Sheets link:presentationLink link:definitionLink link:calculationLink EX-101.CAL 6 neik-20190930_cal.xml EX-101.DEF 7 neik-20190930_def.xml EX-101.LAB 8 neik-20190930_lab.xml Warrants issued - Expire Sept 30, 2020 Represents the Warrants issued - Expire Sept 30, 2020, during the indicated time period. Net cash used in operating activities Net cash used in operating activities Net Income (loss) Retained Earnings Weighted average number of shares outstanding EXPENSES Preferred Stock, Par or Stated Value Per Share Total stockholders' deficit Total stockholders' deficit Stockholders' Deficit Document Fiscal Period Focus Number of warrants outstanding {1} Number of warrants outstanding Increases in due to directors Items not involving cash Common Stock, Shares, Outstanding 20,000,000 Preferred shares authorized, with a par value of $0.0001 each; 597,716 Preferred shares issued and outstanding (597,716 - December 31, 2018) Due to director Voluntary filer Fees accrued from related parties Fees accrued from related parties Warrants issued - Open (3) Represents the Warrants issued - Open (3), during the indicated time period. Equity Component Common Stock Statement Net (loss) Net (loss) Consulting fees Document Quarterly Report Local Phone Number Entity Address, Address Line One Period End date Legal Liability Disclosure Changes in operating assets and liabilities Engineering and Development Foreign exchange (gain) loss Total liabilities and stockholders' deficit Total liabilities and stockholders' deficit Legal liability Liabilities and Stockholders Deficit Accrued management fees to a Director Represents the Accrued management fees to a Director, during the indicated time period. Class of Warrant or Right [Axis] Schedule of Stockholders' Equity Note, Warrants Financing Activities Marketing and sales Common Stock, Par or Stated Value Per Share Emerging Growth Company Registrant Name Issuance of common shares for cash (net of costs) Common Stock, Shares Authorized Entity Address, Country Number of warrants outstanding Tables/Schedules Notes Equity Balance, Shares Equity Balance, Shares Equity Balance, Shares Equity Components [Axis] Investor relations Additional paid-in capital 200,000,000 Common shares authorized, with a par value of $0.0001 each; 127,838,231 Common shares issued and outstanding (127,838,231 - December 31, 2018) Current with reporting Warrants issued - Expire April 20, 2019 Represents the Warrants issued - Expire April 20, 2019, during the indicated time period. Foreign exchange loss (gain) Foreign exchange loss (gain) Equity Balance Equity Balance Equity Balance Document Transition Report Operating Activities Preferred Stock, Shares Issued Total assets Total assets City Area Code Interactive Data Current Warrants issued - Open (1) Represents the Warrants issued - Open (1), during the indicated time period. Shares issued for services, cashless Non-cash Transactions Proceeds from loans Changes in non-cash working capital Basic and diluted gain (loss) per common share Office and Administration Preferred Stock, Shares Outstanding Ex Transition Period SEC Form Registrant CIK Subsequent Event Share Capital Disclosure Interest expense Administration fees Current Amendment Description Trading Symbol Related Party Transactions Disclosure Net cash provided by financing activities Net cash provided by financing activities Entity Incorporation, State or Country Code Entity File Number Filer Category Related Party Transaction Warrants issued - Expire May 18, 2019 Represents the Warrants issued - Expire May 18, 2019, during the indicated time period. Class of Warrant or Right Decrease in cash Common Stock, Shares, Issued Accumulated deficit Cash {1} Cash Cash and Cash Equivalents, at Carrying Value, Beginning Balance Cash and Cash Equivalents, at Carrying Value, Ending Balance Assets {1} Assets Document Fiscal Year Focus Number of common stock shares outstanding Non-cash consulting Non-cash consulting Additional Paid-in Capital Management fees Loans payable Entity Address, State or Province Entity Address, City or Town Well-known Seasoned Issuer Details Warrants issued - Open (2) Represents the Warrants issued - Open (2), during the indicated time period. Statement [Line Items] Professional fees Small Business Tax Identification Number (TIN) Non-cash interest Non-cash interest Preferred Stock Total expenses Preferred Stock, Shares Authorized Total liabilities Total liabilities Accounts payable and accrued liabilities Current {1} Current Amendment Flag Entity Address, Postal Zip Code Trading Exchange Fiscal Year End Related Party Transaction [Axis] working capital deficiency working capital deficiency New Accounting Pronouncements Nature of Operations and Ability to Continue as a Going Concern Shell Company Public Float EX-101.PRE 9 neik-20190930_pre.xml XML 10 R16.htm IDEA: XBRL DOCUMENT v3.19.3
Legal Liability Disclosure (Details) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Details          
Legal liability $ 3,015,012   $ 3,015,012   $ 2,855,868
Interest expense $ 24,165 $ 25,100 $ 72,495 $ 75,809  
XML 11 R12.htm IDEA: XBRL DOCUMENT v3.19.3
Subsequent Event
9 Months Ended
Sep. 30, 2019
Notes  
Subsequent Event

6. SUBSEQUENT EVENT

 

There have been no transactions outside of normal day to day activities subsequent to September 30, 2019.

XML 12 R4.htm IDEA: XBRL DOCUMENT v3.19.3
Condensed Consolidated Statements of Operations - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
EXPENSES        
Management fees $ 30,000 $ 30,000 $ 90,000 $ 90,000
Consulting fees 3,550 10,000 3,550 10,000
Administration fees 15,000 15,000 45,750 45,000
Professional fees 2,042 5,625 15,111 21,375
Foreign exchange (gain) loss (36,382) 50,523 91,107 (90,850)
Engineering and Development 15,125 28,000 37,750 88,000
Investor relations 0 695 6,895 1,945
Marketing and sales 0 12,000 0 36,000
Office and Administration 5,774 4,405 25,718 25,094
Interest expense 24,165 25,100 72,495 75,809
Total expenses 59,274 181,348 388,376 302,373
Net (loss) $ (59,274) $ (181,348) $ (388,376) $ (302,373)
Basic and diluted gain (loss) per common share $ (0.00) $ (0.00) $ (0.00) $ (0.00)
Weighted average number of shares outstanding 127,838,231 103,292,315 127,838,231 100,167,910
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Share Capital Disclosure
9 Months Ended
Sep. 30, 2019
Notes  
Share Capital Disclosure

2. SHARE CAPITAL

 

COMMON STOCK

 

The Company issued nil shares of common stock during the nine months ended September 30, 2019.

 

WARRANTS

 

 

Exercise

 

Number of Warrants

Expiry Date

Price

 

2019

 

2018

Open (1)

$ 0.50

 

389,170

 

389,170

Open (1)

$ 0.75

 

389,170

 

389,170

Open (2)

$ 0.25

 

51,600

 

51,600

April 20, 2019

$ 0.04

 

-

 

2,500,000

May 18, 2019

$ 0.05

 

-

 

1,495,000

September 30, 2020

$ 0.05

 

13,134,208

 

13,134,208

Total outstanding and exercisable

 

 

13,964,148

 

19,786,648

Weighted average outstanding life of

warrants (years)

 

 

0.94 - Open

 

1.35 -  Open

 

(1)        These warrants were issued in 2005. The expiry date of the warrants are six months after the closing bid price for the common stock of the Company has been over $0.65 and $1.00 per share respectively for five consecutive trading days.

 

(2)        These warrants were issued in 2008 and they do not have an expiry date.

 

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Legal Liability Disclosure
9 Months Ended
Sep. 30, 2019
Notes  
Legal Liability Disclosure

3. LEGAL LIABILITY

 

During 2000 to 2008, the Company’s former subsidiaries Northstar Technical Inc. (“NTI”) and Northstar Network Ltd. (“NNL”) received funding from Atlantic Canada Opportunities Agency (“ACOA”) to fund their projects. In accordance with agreements signed between NTI, NNL and the Company, the Company was jointly and severally liable for the obligations. In 2013, ACOA filed claims against NTI, NNL and the Company for repayments of advances due to events of default. The advance and interests ACOA claims totaled CAD$3,079,475 ($3,015,012). Further, the claim amount bears a daily interest of CAD$358 from February 15, 2013 to settlement. During the nine months ended September 30, 2019, the Company recorded interest expenses of $72,495 (2018: $75,809).

XML 16 R5.htm IDEA: XBRL DOCUMENT v3.19.3
Condensed Consolidated Statement of Changes in Stockholders' Deficit - 9 months ended Sep. 30, 2019 - USD ($)
Common Stock
Additional Paid-in Capital
Retained Earnings
Preferred Stock
Total
Equity Balance at Dec. 31, 2018 $ 12,784 $ 8,608,875 $ (13,785,441) $ 404,299 $ (4,759,483)
Equity Balance, Shares at Dec. 31, 2018 127,838,231        
Net Income (loss) $ 0 0 (388,376) 0 (388,376)
Equity Balance, Shares at Sep. 30, 2019 127,838,231        
Equity Balance at Sep. 30, 2019 $ 12,784 $ 8,608,875 $ (14,173,817) $ 404,299 $ (5,147,859)
XML 17 R1.htm IDEA: XBRL DOCUMENT v3.19.3
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2019
Nov. 08, 2019
Details    
Registrant CIK 0001082027  
Fiscal Year End --12-31  
Registrant Name NORTHSTAR ELECTRONICS INC  
SEC Form 10-Q  
Period End date Sep. 30, 2019  
Tax Identification Number (TIN) 33-0803434  
Number of common stock shares outstanding   127,838,231
Filer Category Non-accelerated Filer  
Current with reporting Yes  
Interactive Data Current Yes  
Shell Company false  
Small Business true  
Emerging Growth Company false  
Entity File Number 333-90031  
Entity Incorporation, State or Country Code DE  
Entity Address, Address Line One 355 Burrard Street, Suite 1000  
Entity Address, City or Town Vancouver  
Entity Address, State or Province BC  
Entity Address, Country CA  
Entity Address, Postal Zip Code V6C 2G8  
City Area Code 778  
Local Phone Number 838-3313  
Amendment Flag false  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
Document Quarterly Report true  
Document Transition Report false  
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Related Party Transactions Disclosure (Details) - USD ($)
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Due to director $ 588,019   $ 521,074
Accrued management fees to a Director      
Fees accrued from related parties $ 90,000 $ 90,000  
XML 19 R13.htm IDEA: XBRL DOCUMENT v3.19.3
Share Capital Disclosure: Schedule of Stockholders' Equity Note, Warrants (Tables)
9 Months Ended
Sep. 30, 2019
Tables/Schedules  
Schedule of Stockholders' Equity Note, Warrants

 

 

Exercise

 

Number of Warrants

Expiry Date

Price

 

2019

 

2018

Open (1)

$ 0.50

 

389,170

 

389,170

Open (1)

$ 0.75

 

389,170

 

389,170

Open (2)

$ 0.25

 

51,600

 

51,600

April 20, 2019

$ 0.04

 

-

 

2,500,000

May 18, 2019

$ 0.05

 

-

 

1,495,000

September 30, 2020

$ 0.05

 

13,134,208

 

13,134,208

Total outstanding and exercisable

 

 

13,964,148

 

19,786,648

Weighted average outstanding life of

warrants (years)

 

 

0.94 - Open

 

1.35 -  Open

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    Nature of Operations and Ability to Continue as a Going Concern
    9 Months Ended
    Sep. 30, 2019
    Notes  
    Nature of Operations and Ability to Continue as a Going Concern

    1. NATURE OF OPERATIONS AND ABILITY TO CONTINUE AS A GOING CONCERN

     

    Northstar Electronics, Inc. (the “Company”) was incorporated on May 11, 1998 in the state of Delaware. The Company is doing research and development on single engine aircrafts for business use.

     

    The Company's business activities are conducted in Canada.  However, the financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) with all figures translated into United States dollars for financial reporting purposes.

     

    These unaudited consolidated financial statements have been prepared by management in accordance with GAAP for interim financial information, are condensed and do not include all disclosures required for annual financial statements. The organization and business of the Company, accounting policies followed by the Company and other information are contained in the notes to the Company’s audited consolidated financial statements filed as part of the Company’s December 31, 2018 Form 10-K.

     

    The results of operations for the nine months ended September 30, 2019 are not necessarily indicative of the results to be expected for the entire fiscal year. The accompanying interim consolidated financial statements have been prepared assuming the Company will continue as a going concern which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. During the nine months ended September 30, 2019 the Company incurred a net loss of $388,376 and at September 30, 2019 had a working capital deficiency of $5,147,859.

     

    Management has undertaken initiatives for the Company to continue as a going concern; for example: the Company is attempting to secure an equity financing in the short term. Management is unable to predict the results of its initiatives at this time. These factors raise substantial doubt about the ability of the Company to continue as a going concern.

     

    Should management be unsuccessful in its initiative to finance its operations, the Company’s ability to continue as a going concern is not certain. These financial statements do not give effect to any adjustments to the amounts and classifications of assets and liabilities which might be necessary should the Company be unable to continue its operations as a going concern.

    XML 23 R3.htm IDEA: XBRL DOCUMENT v3.19.3
    Condensed Consolidated Balance Sheets - Parenthetical - $ / shares
    Sep. 30, 2019
    Dec. 31, 2018
    Details    
    Preferred Stock, Shares Authorized 20,000,000 20,000,000
    Preferred Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
    Preferred Stock, Shares Issued 597,716 597,716
    Preferred Stock, Shares Outstanding 597,716 597,716
    Common Stock, Shares Authorized 200,000,000 200,000,000
    Common Stock, Par or Stated Value Per Share $ 0.0001 $ 0.0001
    Common Stock, Shares, Outstanding 127,838,231 127,838,231
    Common Stock, Shares, Issued 127,838,231 127,838,231
    XML 24 R15.htm IDEA: XBRL DOCUMENT v3.19.3
    Share Capital Disclosure: Schedule of Stockholders' Equity Note, Warrants (Details) - $ / shares
    Sep. 30, 2019
    Dec. 31, 2018
    Number of warrants outstanding 13,964,148 19,786,648
    Warrants issued - Open (1)    
    Number of warrants outstanding $ 0.50  
    Number of warrants outstanding 389,170 389,170
    Warrants issued - Open (2)    
    Number of warrants outstanding $ 0.75  
    Number of warrants outstanding 389,170 389,170
    Warrants issued - Open (3)    
    Number of warrants outstanding $ 0.25  
    Number of warrants outstanding 51,600 51,600
    Warrants issued - Expire April 20, 2019    
    Number of warrants outstanding $ 0.04  
    Number of warrants outstanding   2,500,000
    Warrants issued - Expire May 18, 2019    
    Number of warrants outstanding 0.05  
    Number of warrants outstanding   1,495,000
    Warrants issued - Expire Sept 30, 2020    
    Number of warrants outstanding $ 0.05  
    Number of warrants outstanding 13,134,208 13,134,208
    XML 25 R11.htm IDEA: XBRL DOCUMENT v3.19.3
    New Accounting Pronouncements
    9 Months Ended
    Sep. 30, 2019
    Notes  
    New Accounting Pronouncements

    5. NEW ACCOUNTING PRONOUNCEMENTS

     

    Management does not believe that any recently issued but not yet effective accounting pronouncements if currently adopted would have a material effect on the accompanying consolidated financial statements.

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    Nature of Operations and Ability to Continue as a Going Concern (Details) - USD ($)
    3 Months Ended 9 Months Ended
    Sep. 30, 2019
    Sep. 30, 2018
    Sep. 30, 2019
    Sep. 30, 2018
    Details        
    Net (loss) $ 59,274 $ 181,348 $ 388,376 $ 302,373
    working capital deficiency $ 5,147,859   $ 5,147,859  
    XML 28 R10.htm IDEA: XBRL DOCUMENT v3.19.3
    Related Party Transactions Disclosure
    9 Months Ended
    Sep. 30, 2019
    Notes  
    Related Party Transactions Disclosure

    4. RELATED PARTY TRANSACTIONS

     

    During the nine months ended September 30, 2019, the Company accrued management fees payable of $90,000 (2018: $90,000) in total to a director of the company.

     

    At September 30, 2019, there is a balance of $588,019 (December 31, 2018: $521,074) owing to a director of the Company for management fees and expense reimbursement. The amount is included in current liabilities.

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    Condensed Consolidated Statements of Cash Flows - USD ($)
    9 Months Ended
    Sep. 30, 2019
    Sep. 30, 2018
    Operating Activities    
    Net Income (loss) $ (388,376) $ (302,373)
    Items not involving cash    
    Foreign exchange loss (gain) 86,649 (92,953)
    Non-cash interest 72,495 75,809
    Non-cash consulting 0 10,000
    Changes in operating assets and liabilities 45,000 169,000
    Changes in non-cash working capital    
    Net cash used in operating activities (184,232) (140,517)
    Financing Activities    
    Issuance of common shares for cash (net of costs) 0 33,440
    Proceeds from loans 0 8,625
    Increases in due to directors 66,945 82,985
    Net cash provided by financing activities 66,945 125,050
    Decrease in cash (117,286) (15,467)
    Cash and Cash Equivalents, at Carrying Value, Beginning Balance 170,831 16,438
    Cash and Cash Equivalents, at Carrying Value, Ending Balance 53,545 971
    Non-cash Transactions    
    Shares issued for services, cashless $ 0 $ 10,000
    XML 31 R2.htm IDEA: XBRL DOCUMENT v3.19.3
    Condensed Consolidated Balance Sheets - USD ($)
    Sep. 30, 2019
    Dec. 31, 2018
    Current    
    Cash $ 53,545 $ 170,831
    Total assets 53,545 170,831
    Current    
    Accounts payable and accrued liabilities 1,155,457 1,110,456
    Loans payable 442,916 442,916
    Due to director 588,019 521,074
    Legal liability 3,015,012 2,855,868
    Total liabilities 5,201,404 4,930,314
    Stockholders' Deficit    
    20,000,000 Preferred shares authorized, with a par value of $0.0001 each; 597,716 Preferred shares issued and outstanding (597,716 - December 31, 2018) 404,299 404,299
    200,000,000 Common shares authorized, with a par value of $0.0001 each; 127,838,231 Common shares issued and outstanding (127,838,231 - December 31, 2018) 12,784 12,784
    Additional paid-in capital 8,608,875 8,608,875
    Accumulated deficit (14,173,817) (13,785,441)
    Total stockholders' deficit (5,147,859) (4,759,483)
    Total liabilities and stockholders' deficit $ 53,545 $ 170,831