Consolidated Variable Interest Entity

3 Months Ended

Mar. 31, 2017

Consolidated Variable Interest Entity [Abstract]

CONSOLIDATED VARIABLE INTEREST ENTITY

NOTE 3 – CONSOLIDATED VARIABLE INTEREST ENTITY

The Financial Accounting Standards Board authoritative guidance on consolidation requires the “primary beneficiary” of a variable interest entity (a “VIE”) to consolidate that entity. The “primary beneficiary” of a VIE, for this purpose, is a company that has a controlling financial interest in the VIE without any corresponding voting rights control. Controlling financial interests exist when a company has both the power to direct the activities that most significantly impact a VIE’s economic performance, on the one hand, and the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE, on the other. The Company is one member, along with two other technology firms, of a collaborative joint venture limited liability company, Advanced Nanofibers LLC (“Advanced”). This enterprise was formed by the joint venture participants for the purpose of focusing on globally broadening the utilization of nanoparticle-enhanced nanofibers across a diverse range of mass-market industrial and consumer applications. The Company was involved in the formation of Advanced in September 2016. During the fourth quarter of 2016, the Company determined that it was the primary beneficiary of Advanced based on qualitative and quantitative factors. Among other factors, and more specifically, the equity investors in Advanced do not, and are not obligated to, provide sufficient financial resources for the entity to support itself in terms of day-to-day research and development activities. However, the Company has provided financial support that is disproportionate to its equity interest and our CEO was involved in the organization of the entity. U.S. GAAP thereunder, requires a VIE to be consolidated by a company if and when that company holds a majority of the variable interests in the entity and is thus subject to a majority of the risk of loss from the VIE’s activities. For the three months ended March 31, 2017, the Company provided the financial resources in the amount of $55,306 as support for Advanced’s day-to-day research and development activities and a total of $108,056 since Advanced’s inception. See Note 1.

The carrying value of the assets and liabilities of Advanced which are consolidated as of March 31, 2017 are as follows:

	March 31, 2017 (Unaudited)			December 31, 2016 (Unaudited)
Assets
Current Assets:
Cash and cash equivalents	$	199,465		$	4,020
Total current assets		199,465			4,020
Total assets	$	199,465		$	4,020
Liabilities and Members’ Equity
Current Liabilities:
Due to Findex.com, Inc.	$	108,056		$	52,750
Total current liabilities		108,056			52,750
Stockholders’ equity:
Member’s investment		204,020			4,020
Accumulated deficit		(112,611	)		(52,750	)
Total members’ equity		91,409			(48,730	)
Total liabilities and members’ equity	$	199,465		$	4,020
Net loss	$	(59,861	)	$	(52,750	)