1. Nature of Business and Basis of Presentation

3 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business and Basis of Presentation

The condensed consolidated interim financial statements included herein, presented in accordance with United States generally accepted accounting principles, have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. 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, although the Company believes that the disclosures are adequate to make the information presented not misleading.

These statements reflect all adjustments, consisting of normal recurring adjustments, which in the opinion of management are necessary for fair presentation of the information contained therein. It is suggested that these condensed consolidated interim financial statements be read in conjunction with the financial statements of the Company for the year ended December 31, 2016 and notes thereto included in the Company's Form 10-K annual report. The Company follows the same accounting policies in the preparation of interim reports.

Results of operations for the interim period are not indicative of annual results.

Competitive Companies, Inc. (the “Company” or “CCI”) was incorporated in the state of Nevada in October 2001 and acts as a holding company for its operating subsidiaries. The Company's headquarters are located in San Antonio, Texas. The Company is involved in providing next generation fixed and mobile wireless broadband Internet services nationally and internationally to wholesale, retail and enterprise customers with a special focus on the small medium business market.

The accompanying condensed consolidated interim financial statements include the accounts of the following entities. All significant inter-company transactions have been eliminated in the preparation of these financial statements.

		State of	Relationship
Name of Entity (1)	Form of Entity	Incorporation	March 31, 2017
Competitive Companies, Inc.	Corporation	Nevada	Parent
Wireless Wisconsin LLC	Limited Liability Company	Wisconsin	Subsidiary (2)
Innovation Capital Management, Inc.	Corporation	Delaware	Subsidiary (2)
Innovation Capital Management, LLC	Limited Liability Company	Texas	Subsidiary (2)
Wytec International, Inc.	Corporation	Nevada	Subsidiary (3)
Wylink, Inc.	Corporation	Texas	Subsidiary (4)
Capaciti Networks, Inc.	Corporation	Texas	Subsidiary (5)

(1) Certain non-operational holding companies have been excluded.

(2) Wholly-owned subsidiary of Competitive Companies, Inc.

(3) As of March 31, 2017, CCI owned a 10% interest in Wytec on an “as converted basis” with respect to Wytec’s Series A and Series B Preferred Stock consolidated under the variable interest entity model.

(4) Wholly-owned subsidiary of Wytec International, Inc.

(5) During 2016, Capaciti was sold, in full, from CCI to Wytec and as of March 31, 2017, Capaciti is a wholly owned subsidiary of Wytec.

The operations of each consolidated subsidiary is further detailed below:

· Wireless Wisconsin LLC (“Wireless WI”) – Provides high speed wireless Internet connections to residents in rural communities, as well as some DSL internet services to businesses and residents within various markets throughout rural Wisconsin. The Company operates in both a regulated and non-regulated environment.

· Innovation Capital Management, Inc. (“ICM”) – Formed to manage capital raising activities.

· Innovation Capital Management, LLC (“ICMLLC”) – Formed to engage in strategic marketing relationships.

· Wytec International, Inc. (“Wytec”) – Provider of wireless internet access serviced infrastructures and provides internet access services primarily to the small and medium business market.

· Wylink, Inc. (“Wylink”) – Applies for and registers links (each a “Registered Link”).

· Capaciti Networks, Inc. (“Capaciti”) – Provides the WyQuote system to market internet access services

In October 2016, the Company entered into an agreement with Wytec pursuant to which the Company agreed to exchange shares of Wytec common stock owned by the Company in consideration for the cancellation of intercompany debts. After consummation of the transaction, the Company’s percentage ownership of Wytec decreased to 11% On an “as converted” basis with respect to Wytec’s outstanding convertible Preferred Stock Wytec is now consolidated as a variable interest entity. The Company is the primary beneficiary of Wytec and controls it through its governing board and continuity of management.

The condensed consolidated financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplate the realization of assets and liquidation of liabilities in the normal course of business. The Company has incurred continuous losses from operations, has an accumulated deficit of $18,919,720 at March 31, 2017, and has reported negative cash flows from operations in most periods over the last seven years. In addition, the Company does not currently have the cash resources to meet its operating commitments for the next twelve months. The Company’s ability to continue as a going concern must be considered in light of the problems, expenses, and complications frequently encountered by entrance into established markets and the competitive nature of the industry in which the Company operates.

The Company’s ability to continue as a going concern is dependent on the Company’s ability to generate sufficient cash from operations to meet its cash needs and/or to raise funds to finance ongoing operations and repay debt. There can be no assurance that the Company will be successful in its efforts to raise additional debt or equity capital and/or that cash generated by operations will be adequate to meet the Company’s needs. These factors, among others, indicate that the Company may be unable to continue as a going concern for a reasonable period of time. The condensed consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.