10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

or

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

For the transition period from _________ to _________

Commission File Number: 000-52390

Advanced Voice Recognition Systems, Inc.

(Exact name of registrant as specified in its charter)  

Nevada	980511932
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

7659 E. Wood Drive

Scottsdale, Arizona  85260

(Address of principal executive offices)

(480) 704-4183

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for 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 has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months.

Yes [X] No [_]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” or “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	[_]	Accelerated filer	[_]
Non-accelerated filer	[_]	Smaller reporting company	[X]
(Do not check is smaller reporting company)		Emerging growth company	[X]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   [_]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [_] No [X]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of October 31, 2018, 255,520,268 shares of common stock are issued and outstanding.

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566487

Advanced Voice Recognition Systems, Inc.

Table of Contents

PART I - FINANCIAL INFORMATION
		Page
Item 1.	Financial Statements
	Balance Sheets as of September 30, 2018 (Unaudited) and December 31, 2017 (Audited).	1
	Unaudited Statements of Operations for the three and nine months ended September 30, 2018 and 2017.	2
	Unaudited Statements of Cash Flows for the nine months ended September 30, 2018 and 2017.	3
	Notes to Unaudited Financial Statements	4
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	10
Item 3	Quantitative and Qualitative Disclosures About Market Risk	12
Item 4T.	Controls and Procedures	12
PART II - OTHER INFORMATION
Item 5.	Legal Proceedings	13
Item 6.	Exhibits	13
SIGNATURES		16

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566487

Part I. Financial Information

Item 1. Financial Statements

Advanced Voice Recognition Systems, Inc.

Condensed Balance Sheets

		September 30, 2018		December 31, 2017
		Un-Audited		Audited
ASSETS
Current Assets
Cash and cash equivalents	$	5,498	$	7,257
Total Current Assets		5,498		7,257
Non Current Assets
Patent, net		47,064		53,204
Deferred costs		-		3,595
Total Non Current Assets		47,064		56,799
Total Assets	$	52,562	$	64,056
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Accounts payable	$	75,552	$	126,502
Payroll		162,382		162,382
Note Payable  Meyer & Assoc.		41,252		-
Note Payable  AIP		19,935		19,935
Note Payable  Related Party		9,000		-
Accrued Interest		7,484		5,981
Total Current Liabilities		315,605		314,800
Commitments and Contingencies
Stockholders' Deficit
Common stock, $0.001 par value; 547,500,000 shares authorized 255,520,268 and 243,920,268, issued and outstanding respectively	$	255,520	$	243,920
Additional paid-in capital		7,817,848		7,788,248
Accumulated Deficit		(8,336,411)		(8,282,912)
Total Stockholders' Deficit		(263,043)		(250,744)
Total Liabilities and Stockholders' Deficit	$	52,562	$	64,056

The accompanying notes are an integral part of these financial statements.

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Advanced Voice Recognition Systems, Inc.

Statements of Operations

(Unaudited)

		Three Months		Three Months		Nine Months		Nine Months
		Ended		Ended		Ended		Ended
		September 30,		September 30,		September 30,		September 30,
		2018		2017		2018		2017
Sales	$	-	$	-	$	-	$	-
Cost of goods sold		-		-		-		-
Gross profit				-				-
Operating expenses:
General and administrative:
Compensation		25		4,863		1,419		13,623
Professional fees		3,025		6,690		22,973		36,021
Office		7,841		6,356		19,377		16,871
Travel		158		42		551		298
Other		432		357		2,216		1,886
Total operating expenses		11,481		18,308		46,536		68,699
Loss from operations		(11,481)		(18,308)		(46,536)		(68,699)
Other income and (expense):
Interest expense		(2,392)		(2,900)		(6,963)		(7,565)
Net other expense		(2,392)		(2,900)		(6,963)		(7,565)
Loss before income taxes		(13,873)		(21,208)		(53,499)		(76,264)
Provision for income taxes		-		-		-		-
Loss before extraordinary items		(13,873)		(21,208)		(53,499)		(76,264)
Net Loss	$	(13,873)	$	(21,208)	$	(53,499)	$	(76,264)
Basic and diluted loss per common share	$	(0)	$	(0)	$	(0)	$	(0)
Weighted average number of common shares		255,395,824		240,295,268		252,078,046		235,822,675

*less than $0.01 per share

The accompanying notes are an integral part of these financial statements

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Advanced Voice Recognition Systems, Inc.

Statements of Cash Flows

(Unaudited)

		FOR THE 9 MONTHS ENDED
		September 30,
		2018		2017
Cash Flows from Operating Activities:
Net loss	$	(53,499)	$	(76,264)
Adjustments to reconcile net loss to net Cash (used in) operating activities:
Amortization and depreciation		10,716		10,092
Changes in operating assets:
Changes in operating liabilities:
Accounts payable and accrued liabilities		2,938		16,160
Net cash used in operating activities		(39,845)		(50,012)
Cash Flows from Investing Activities:
Payments for patents		(980)		-
Payments for deferred costs		-		(1,450)
Net cash used in investing activities		(980)		(1,450)
Cash Flows from Financing Activities:
Proceeds from sale of common stock		41,200		49,500
Proceeds from notes payable		9,000		-
Payments on notes payable		(11,134)		-
Net cash provided by financing activities		39,066		49,500
Net change in cash		(1,759)		(1,962)
Cash at beginning of period		7,257		9,454
CASH AT END OF PERIOD	$	5,498	$	7,492
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Account payable converted to note payable		52,385		-
Interest	$	5,460	$	7,565
Income taxes	$	-	$	-

The accompanying notes are an integral part of these financial statements.

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Advanced Voice Recognition Systems, Inc.

(A Development Stage Company)

Notes to Unaudited Financial Statements

Note 1.     Nature of Operations

Company Overview

The operations of Advanced Voice Recognition Systems, Inc. (“AVRS” or the “Company”), http://www.avrsys.com, commenced in 1994 with a predecessor entity called NCC, Inc. NCC, Inc. was incorporated on March 15, 1994 in the State of Ohio. NCC, Inc. operated as a software and hardware development company that marketed voice recognition and transcription products for commercial applications.

In May 2000, WG Investments, LLC acquired the assets of NCC, Inc. and subsequently changed its name to NCC, LLC. NCC, LLC (also a predecessor to AVRS) continued the operations of NCC, Inc. until approximately December 31, 2001, when shifts in the industry’s markets caused NCC, LLC to suspend its operations.

AVRS was incorporated in the State of Colorado on July 7, 2005. In September 2005, the members of NCC, LLC transferred all of their membership interests in NCC, LLC to AVRS in exchange for 93,333,333 shares (post-recapitalization) of AVRS common stock. In December 2005, the Board of Directors approved a 1.5-to-1 stock split issuing 46,666,667 common shares (post-recapitalization), which increased the number of common shares outstanding to 140 million shares (post-capitalization). Following the incorporation of AVRS, the Company initiated a new business plan and intends to continue its operations in the voice recognition and transcription industry.

AVRS is a software development company specializing in speech recognition technologies. AVRS has successfully obtained patent protection of its proprietary technology (refer to Note 3, Intangible Assets).   The Company has currently engaged a firm to investigate and asserting claims relating to certain patents including negotiating licensing agreements and the filing and prosecution of lawsuits.

Stock Purchase Agreements

During the year ended December 31, 2017 the Company entered into Stock Purchase Agreements for the private sale to thirteen persons or entities of an aggregate of 13,525,000 shares of the common stock for aggregate proceeds of $60,000, full payment of which was received in the period. During the nine months ended September 30, 2018, the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 11,600,000 shares of the common stock for aggregate proceeds of $41,200, full payment of which was received in the period.

Commitments and Contingencies

On April 20, 2015 Advanced Voice Recognition Systems, Inc. (“AVRS”) entered into a Material Letter Agreement with an unrelated third party  (Third Party) in which they promise to pay to patent legal counsel funds to continue prosecuting Patents on behalf of AVRS.  AVRS promises to pay to the Third Party, or to such other holder of this promissory note (Note) as designate, the principal, together with any additional amounts owed pursuant to the terms set forth in this Note.  Interest at 2% was accrued and reported at September 30, 2018.

On August 20, 2015, Advanced Voice Recognition Systems, Inc. (“AVRS”) entered into a letter agreement with unrelated third party (Third Party) pursuant to which the Third Party will provide strategic advisory services to AVRS to support the common goal of the acquisition, sale, licensing, prosecution, enforcement, and settlement with respect to AVRS’s intellectual property, including patents held by AVRS. The Third Party has agreed to advance costs recommended by it, including court filing fees, discovery and other litigation costs, and patent prosecution costs, up to an aggregate of $10,000,000.   AVRS will be responsible for costs not recommended by the Third Party, as well as travel and ordinary business expenses incurred by AVRS.  Except for the advanced costs by the Third Party, AVRS will be responsible for any contingency payments to law firms.  Any and all advanced costs will only become liabilities if successful.  On June 28, 2017 AVRS and the Third Party agreed to terminate the August 20, 2015 Letter Agreement.  AVRS did not incur any material early termination penalties in connection of the early termination of the agreement.

On November 1, 2016, Advanced Voice Recognition Systems, Inc. (“AVRS”) entered into a Contingent Fee Agreement (the “Agreement”) with Legal Representation pursuant to which they will represent AVRS in connection with investigating and asserting claims relating to certain patents, including the negotiation of license agreements and the filing and prosecution of lawsuits, against any potential infringers of rights associated with such patents (the “Patent Rights”)  Legal representation will handle licensing and litigation activities under the Agreement on a contingent fee basis.  The fee will depend upon whether AVRS recovers any sums by way of licensing, settlement, trial or otherwise with respect to the Patent Rights.  On June 6, 2017 AVRS and Legal Representation revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Letter Agreement.

On November 6, 2017 Advanced Voice Recognition Systems, Inc (“AVRS”) received notice that Meyers & Associates, LLC filed Complaint number 2017CV32482 in Arapahoe County District Court on October 30, 2017. The Complaint relates to purported legal fees owed by AVRS.  On January 31, 2018 AVRS entered into a Settlement Agreement and Promissory Note with Meyers & Associates, LLC.  AVRS promises to pay the principal sum of Fifty-Two Thousand Three Hundred Eighty-Five Dollars and Forty-Six Cents ($52,385.46) as well as accrued interest. AVRS shall pay $1,000 per month on the first day of each month beginning February 1, 2018 and continuing through July 1, 2018 and pay all

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remaining unpaid principal and accrued interest (12% annual) on August 1, 2018.  The February, March, April, May and June payments have been made.  

On August 1, 2018 AVRS and Meyers & Associates entered into an Agreement to Amend Promissory Note. AVRS shall pay $6,000 on or before August 1, 2018, shall pay $1,500 on the first day of each month beginning September 1, 2018 and continuing through November 1, 2018 and shall pay all remaining unpaid principal and accrued interest on December 1, 2018.  The August, September, October and November payments have been paid.

On June 21, 2018, Advanced Voice Recognition Systems, Inc. (“AVRS”) and Buether Joe & Carpenter, LLC (“BJC) entered into a Letter of Engagement for Legal Services Limited Scope Agreement  (“Agreement”) with Schmeiser, Olsen & Watts LLP (“the Firm”) pursuant to which the Firm will serve as local counsel in the United States District Court, District of Arizona.  The Firm has been hired to represent AVRS as local counsel in connection with forthcoming litigation in the U.S. District Court, District of Arizona.    AVRS may terminate the Agreement at any time.

On September 24, 2018, Advanced Voice Recognition Systems, Inc., a Nevada corporation (“AVRS”, “we” or “us”), entered into Promissory Note with Walter Geldenhuys, who is our President, Chief Executive Officer and Chief Financial Officer, and who serves as a member of our Board of Directors.  The Promissory Note is effective as of September 24, 2018 in the principal amount of $9,000 with a maturity date of the Promissory Note September 24, 2019.  Interest at 4% per annum was charged and accrued at September 30, 2018.

Note 2.     Significant Accounting Policies

Unaudited Financial Information

The accompanying financial information at September 30, 2018 and for the nine months ended September 30, 2018 and 2017 is unaudited.  In the opinion of management, all normal and recurring adjustments which are necessary to provide a fair presentation of the Company’s financial position at September 30, 2018 and its operating results for the nine months ended September 30, 2018 and 2017 have been made.  Certain information and footnote data necessary for a fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2017.  The results of operations for the nine months ended September 30, 2018 are not necessarily an indication of operating results to be expected for the year ending December 31, 2018.

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities exceed assets and there is a capital deficiency of $263,043 and no significant revenues.  The Company may be unable to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.   During the twelve months ended December 31, 2017 the Company received an aggregate of $60,000 from the sale of shares in private offerings of its common stock.  During the nine months ended September 30, 2018 the Company received an aggregate of $41,200 from the sale of shares in private offerings of its common stock.

The Company’s current operations are related to patent monetization and filing of additional patents.  The Company has entered into a letter agreement with Dominion Harbor Group, LLC to provide strategic advisory services to AVRS.  Dominion has agreed to advanced costs up to an aggregate of $10,000,000. On June 28, 2017 the Company and Dominion agreed to terminate the August 20, 2015 Letter Agreement.  The Company did not incur any material early termination penalties.  In addition the Company has revised the Contingent Fee Agreement with Buether Joe & Carpenter, LLC which will represent AVRS in connection with investigating and asserting claims to the AVRS patents including licensing and litigation activities. Any and all advanced costs will only become liabilities if successful.  On June 6, 2017 AVRS and BJC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement.  There is no guarantee that AVRS will be able to provide the capital required for the Company to continue as a going concern.

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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Basis of Consolidation

The consolidated financial statements include our accounts and those of NCC, LLC which merged with and into AVRS, Inc. March 25, 2009. Intercompany transactions and balances have been eliminated. The accounts, results of operations and cash flows of acquired companies are included from their respective acquisition dates.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with original maturities of three months or less when acquired to be cash equivalents. The Company had cash at September 30, 2018 of $5,498, $7,257 at December 31, 2017 and $7,492 cash at September 30, 2017.  No amounts resulted from cash equivalents.

Financial Instruments

The carrying amounts of cash, receivables and current liabilities approximate fair value due to the short-term maturity of the instruments.

Fixed Assets

Fixed assets are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, ranging from three to five years. Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred. The cost and related accumulated depreciation of property and equipment sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.

Income Taxes

Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the recorded book basis and the tax basis of assets and liabilities for financial and income tax reporting. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future federal income taxes.  The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company’s financial condition, results of operations, or cash flow.  Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740.  The Company did not record a cumulative effect adjustment related to the adoption of ASC 740.

Research and Development Costs

Research and development costs are expensed in the period incurred.

Patents, Deferred Costs and Amortization

Patents consist of costs incurred to acquire issued patents. Amortization commences once a patent is granted. Costs incurred to acquire patents that have not been issued are reported as deferred costs. On April 3, 2018 U.S. Patent #9,934,786 entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” was issued by the U.S patent and Trademark Office. Deferred costs of $4,575 were capitalized and amortization began in the period.  The Company amortizes its patents over an estimated useful life of twenty years.

Impairment and Disposal of Long-Lived Assets

The Company evaluates the carrying value of its long-lived assets under the provisions of Statement of Financial Accounting Standard (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” now referred to as ASC 360-10 Property, Plant, and Equipment – “Impairment or Disposal of Long Lived Assets” subsections” . ASC 306-10 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted future cash flows estimated to be generated by those assets are less than the assets’ carrying amount. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying value or fair value, less costs to sell.  The Company’s last impairment analysis was completed effective December 31, 2017.  Impairment recorded for each of the nine months ended September 30, 2018 and 2017 was $-0-.

Loss per Common Share

The Company reports net loss per share using a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. At September 30, 2018 and 2017, there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding.

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Fair Value of Financial Instruments

The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision.  Changes in assumptions could significantly affect these estimates.  We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.

The FASB Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:

Level 1:	Quoted prices in active markets for identical assets or liabilities.
Level 2:	Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.
Level 3:	Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Note 3.     Intangible and Fixed Assets

Intangible Assets

The Company monitors the anticipated outcome of legal actions, and if it determines that the success of the defense of a patent is probable, and so long as the Company believes that the future economic benefit of the patent will be increased, the Company capitalizes external legal costs incurred in the defense of the patent. Upon successful defense of litigation, the amounts previously capitalized are amortized over the remaining life of the patent.

On July 7, 2009, U.S. Patent # 7,558,730, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 7, 2009 and ending 20 years from the application date of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2009 and the Company began amortization.

On May 24, 2011, U.S. Patent #7,949,534, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning May 24, 2011 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended June 30, 2011 and the Company began amortization.

On March 6, 2012, U.S. Patent #8,131,557, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning March 6, 2012 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended March 31, 2012 and the Company began amortization.

On July 30, 2013, U.S. Patent #8,498,871, entitled “Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 30, 2013 and ending 20 years from the application date of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2013 and the Company began amortization.

On June 27, 2013, the Company filed two additional continuation applications 13/928/381 and 13/928,383 with the U.S. Patent and Trademark Office entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols.”  On August 31, 2015, Application 13/928,381 was abandoned by the Company.  Deferred costs were charged to operations the quarter ended September 30, 2015.

On September 22, 2015, U.S. Patent #9,142,217, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning September 22, 2015 and ending 20 years from the application date of the parent application (US Patent No. 7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2015 and the Company began amortization.

On April 3, 2018, U.S. Patent #9,934,786, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning April 3, 2018 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001 or November 27, 2021.  The deferred costs were capitalized during the quarter ended June 30, 2018 and the Company began amortization.

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Amortization at December 31, 2017 is as follows:

SCHEDULE OF INTANGIBLE ASSETS

Ended December 31, 2017
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277	$	39,882	$	18,395
7,949,534		3,365		2,113		1,252
8,131,557		5,092		3,046		2,046
8,498,871		21,114		11,183		9,931
9,142,217		35,068		13,488		21,580
	$	122,916	$	69,712	$	53,204

Amortization at September 30, 2018 is as follows:

Ended September 30, 2018
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277		43,401		14,876
7,949,534		3,365		2,347		1,018
8,131,557		5,092		3,439		1,653
8,498,871		21,114		13,082		8,032
9,142,217		35,068		17,534		17,534
9,934,786		4,575		624		3,951
	$	127,491	$	80,427	$	47,064

Amortization expense totaled $10,716 and $10,092 for the nine months ended September 30, 2018 and 2017.  Estimated aggregate amortization expense for each of the next four years is as follows:

SCHEDULE OF FUTURE AMORTIZATION

Year ending September 30,
2018		3,674
2019		14,702
2020		14,702
2021		13,986
	$	47,064

Fixed Assets

Fixed assets were fully depreciated in the period ending December 31, 2017.  

PROPERTY PLANT AND EQUIPMENT

		December 31, 2017
Computer equipment	$	6,627
Computer software		3,640
		10,267
Less accumulated depreciation		(10,267)
Property and Equipment, Net	$	0

		September 30, 2018		September 30, 2017
Computer equipment	$	6,627	$	6,627
Computer software		3,640		3,640
		10,267		10,267
Less accumulated depreciation		(10,267)		(10,267)
Property and Equipment, Net	$	0	$	0

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Note 4.     Related Party Transactions

Related Parties Transactions and Indebtedness

During the years from 2000 through 2013, certain officers advanced the Company working capital to maintain the Company’s operations. The Company owed the officers $9,000 and -0- at September 30, 2018 and 2017 respectively.  The Company also owed the officers aggregate of $162,382 at September 30, 2018 and December 31, 2017 for accrued payroll.  During the period of nine months ending September 30, 2018, and September 30, 2017 the Company paid gross payroll of $1,419 and $13,623 to the CEO and for payroll expenses. On September 24, 2018, Walter Geldenhuys, who is our President, Chief Executive Officer and Chief Financial Officer, and who serves as a member of our Board of Directors loaned the Company $9,000.  During the nine month period ending September 30, 2018, AVRS completed Stock Purchase Agreements totaling 11,600,000 shares of AVRS stock to four shareholders.  All shares were paid in the period ending September 30, 2018, for a total amount of $41,200.  At period ending September 30, 2018 one shareholder owned 5.30% of the issued and outstanding stock.  

Note 5.     Income Taxes

A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows.

INCOME TAXES

	September 30, 2018	December 31, 2017
U.S. federal statutory graduated rate	21.00%	21.00%
State income tax rate, net of federal benefit	0.00%	0.00%
Contributed services	00.00%	-00.68%
Costs capitalized under Section 195	-21.00%	-20.32%
Effective rate	0.00%	0.00%

The Company is considered a start-up company for income tax purposes. As of September 30, 2018, the Company had not commenced its trade operations, so all costs were capitalized under Section 195. Accordingly, the Company had no net operating loss carry forwards at September 30, 2018.

Note 6 .    Concentration of Risk

Beginning March 31, 2010, through September 30, 2018, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of $250,000, at all FDIC-insured institutions.  On September 30, 2018, the Company had cash balances at one FDIC insured financial institution of $5,498 in non-interest bearing accounts that were fully insured by the FDIC.

Note 7.Stockholder Equity / (Deficit) 

The Company has issued shares of its common stock pursuant to certain agreements as described in Note 1.

Note 8 .    Subsequent Events

On August 1, 2018 AVRS and Meyers & Associates, LLC entered into an Agreement to Amend Promissory Note. AVRS shall pay $6,000 on or before August 1, 2018, shall pay $1,500 on the first day of each month beginning September 1, 2018 and continuing through November 1, 2018 and shall pay all remaining unpaid principal and accrued interest on December 1, 2018.  The August, September, October and November payments have been paid.

On October 24, 2018 Walter Geldenhuys advanced the Company $4,000.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The statements contained in this Quarterly Report that are not historical are “forward-looking statements”, which can be identified by use of terms such as “may”, “could”, “should”, “expect”, “plan”, “project”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “pursue”, “target” or “continue”, the negative of such terms or other comparable terminology, although some forward-looking statements may be expressed differently.

The forward-looking statements contained in this 10-Q are largely based on our expectations, which reflect estimates and assumptions made by our management. These estimates and assumptions reflect our best judgment based on currently known market conditions and other factors. Although we believe such estimates and assumptions to be reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond our control. In addition, management’s assumptions about future events may prove to be inaccurate. Management cautions all readers that the forward-looking statements contained in this 10-Q are not guarantees of future performance, and we cannot assure any reader that such statements will be realized or the forward-looking events and circumstances will occur. Actual results may differ materially from those anticipated or implied in the forward-looking statements due to various factors listed in this Quarterly Report. All forward-looking statements speak only as of the date of this 10-Q. We do not intend to publicly update or revise any forward-looking statements as a result of new information, future events or otherwise. These cautionary statements qualify all forward-looking statements attributable to us or persons acting on our behalf.

Overview

We are a software development company headquartered in Scottsdale, Arizona. We specialize in creating interface and application solutions for speech recognition technologies. Our speech recognition software and related firmware was first introduced in 1994 at an industry trade show.  We currently have limited capital resources.  We are not currently engaged in marketing any products.  Our principal assets are our patents.  Our business strategy will be to attempt to interest other companies in entering into license agreements or other strategic relationships and to support and defend our patents through infringement and interference proceedings, as appropriate. We are currently engaged in discussions with firms that could assist us in commercialization of our intellectual assets.

Results of Operations

We completed a stock exchange on May 19, 2008 and changed our business model. We have not generated any revenue since the stock exchange and do not have any cash generating product or licensing sales.

At September 30, 2018, we had current assets of $5,498, and current liabilities of $315,605, as compared to $7,257 current assets and $314,800 in current liabilities at December 31, 2017. Our decrease in current assets is attributed to payments made to promissory notes. Our increase in current liabilities primarily is due to accrued interest.

We had a net loss of $53,499 and $76,264 for the nine months ended September 30, 2018 and 2017 respectively. The decrease in net loss is attributable to reduced professional fees incurred in the nine months ended September 30, 2018.

Liquidity and Capital Resources

For the nine months ended September 30, 2018, we used $39,845 of cash in operating activities and $980 of cash in investing activities, and we received $39,066 cash from sales of our common stock and payments and proceeds from notes payable. As a result, for the nine months ended September 30, 2018, we recognized a $1,759 decrease in cash on hand. For the nine months ended September 30, 2017, $50,012 cash was used in operating activities, $1,450 cash in investing activities, and we received $49,500 cash from the sale of our common stock, resulting in a $1,962 decrease in cash on hand for the period.

Historically, our President has loaned or advanced to us funds for working capital on an “as needed” basis. There is no assurance that these loans or advances will continue in the future. At September 30, 2018 and December 31, 2017, we owed our officers an aggregate of $162,382 for accrued payroll.  On September 24, 2018, the Company entered into Promissory Note with Walter Geldenhuys, who is our President, Chief Executive Officer and Chief Financial Officer, and who serves as a member of our Board of Directors.  The Promissory Note is effective as of September 24, 2018 in the principal amount of $9,000 with a maturity date of September 24, 2019.  Interest at 4% per annum was charged and $7.00 accrued at September 30, 2018.  Because of our history of losses, and lack of assurance of additional financing, the audit reports on our financial statements at December 31, 2017 and 2016 contained a “going concern” opinion regarding doubt about our ability to continue as a going concern.

On March 16, 2015 we entered into a letter agreement with Adapt IP Ventures, LLC (Adapt IP) confirming the retention of Adapt IP to assist us in identifying companies that might be interested in acquiring and / or licensing our patents, to attempt to negotiate financial terms and conditions for acquisition and / or licensing and to assist with collection of compensation from such entities.  Adapt IP will receive a success fee of 15% of net compensation received from such entities based upon Adapt IP’s efforts.  We or Adapt IP may terminate the agreement upon 30 days’ notice to the other party.

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On April 20, 2015 we made a Promissory Note to Adapt IP for up to $20,000, and Adapt IP agreed to pay to our patent counsel $19,935 for patent work on our behalf.  The Note matures one year from the date of the Note.  We are obligated to repay the funds advanced by Adapt IP plus a premium of 10% of the principal amount and a percentage of proceeds received by us from any monetization event involving the patents.  If we repay the Note within the six months of the date of the Note, the percentage will be 1%, and it will be 2% after six months.  As of September 30, 2018 $7,476 interest has accrued.

On August 20, 2015, AVRS entered into a letter agreement with Dominion Harbor Group, LLC pursuant to which Dominion will provide strategic advisory services to AVRS to support the common goal of the acquisition, sale, licensing, prosecution, enforcement, and settlement with respect to AVRS’s intellectual property, including patents held by AVRS. On June 28, 2017 AVRS and Dominion agreed to terminate the August 20, 2015 Letter Agreement.  AVRS did not incur any material early termination penalties in connection of the early termination of the agreement.

On November 1, 2016, AVRS entered into a Contingent Fee Agreement with Buether Joe and Carpenter, LLC to represent AVRS in connection with investigating and asserting claims including negotiating license agreements and the filing and prosecution of lawsuits against any potential infringers of the Patent rights. On June 6, 2017 AVRS and Buether Joe and Carpenter, LLC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement.

On June 21, 2018, Advanced Voice Recognition Systems, Inc. (“AVRS”) and Buether Joe & Carpenter, LLC (“BJC) entered into a Letter of Engagement for Legal Services Limited Scope Agreement  (“Agreement”) with Schmeiser, Olsen & Watts LLP (“the Firm”) pursuant to which the Firm will serve as local counsel in the United States District Court, District of Arizona.   AVRS may terminate the Agreement at any time.

In carrying out our business strategy, we will likely continue to incur expenses in defending our patents and pursuing license agreements.  We plan to raise additional funds through future sales of our securities or other means, until such time as our revenues are sufficient to meet our cost structure, and ultimately achieve profitable operations. There is no assurance we will be successful in raising additional capital or achieving profitable operations. Our board of directors may attempt to use non-cash consideration to satisfy obligations that may consist of restricted shares of our common stock. These actions would result in dilution of the ownership interests of existing shareholders and may further dilute our common stock book value.

To obtain sufficient funds to meet our future needs for capital, we will from time to time, evaluate opportunities to raise financing through sales of our securities. However, future equity or debt financing may not be available to us at all, or if available, may not be on terms acceptable to us. We do not intend to pay dividends to shareholders in the foreseeable future.

U.S. Patent #7,558,730 expands an extremely broad base of features in speech recognition and transcription across heterogeneous protocols.  Costs totaling $58,277 have been capitalized and amortization began in the third quarter 2009.

U.S. Patent #7,949,534 is an expansion of the coverage of our second patent and incorporates speech recognition and transcription among transcription engines employing incompatible protocols.  Costs totaling $3,365 have been capitalized and amortization began in the second quarter 2011.

U.S. Patent #8,131,557 is an expansion of our second and third patent.  Costs totaling $5,092 have been capitalized and amortization began in the first quarter 2012.

U.S. Patent #8,498,871 titled “Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” was issued July 30, 2013 by the U.S. Patent and Trademark Office. Costs totaling $21,114 have been capitalized and amortization began in the third quarter 2013.

On September 22, 2015, Patent #9,142,217 titled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” (an expansion of our fourth patent) was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning September 22, 2015 and ending 20 years from the application date of the parent application (U.S. Patent No 7,558,730) of November 27, 2001, or November 27, 2021.  Costs totaling $35,068 have been capitalized and amortization began in the third quarter 2015.

On April 3, 2018, U.S. Patent #9,934,786 titled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning April 3, 2018 and ending 20 years from the application date of the parent application (U.S. Patent No 7,558,730) of November 27, 2001, or November 27, 2021.  Costs totaling $4575 have been capitalized and amortization began in the second quarter 2018.

In order for our operations to continue, we will need to generate revenues from our intended operations sufficient to meet our anticipated cost structure.

Off-Balance Sheet Arrangements

On March 16, 2015 Advanced Voice Recognition Systems, Inc. (AVRS) entered into a material Letter Agreement  with Adapt IP Ventures, LLC  (Adapt IP) in which it retained Adapt IP on an exclusive basis.  Adapt IP will assist AVRS in identifying companies that might be interested in acquiring and / or licensing the Patents, attempt to negotiate financial terms and conditions for the acquisition and /or licensing of

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the Patents with such Entity(ies) and assist with collection of compensation from such entities.  In connection with services provided under this Agreement, AVRS shall pay Adapt IP a success fee.

On August 20, 2015, Advanced Voice Recognition Systems, Inc. (AVRS) entered into a letter agreement with Dominion Harbor Group, LLC (Dominion) pursuant to which Dominion will provide strategic advisory services to AVRS to support the common goal of the acquisition, sale, licensing, prosecution, enforcement, and settlement with respect to AVRS’s intellectual property, including patents held by AVRS. Dominion has agreed to advance costs recommended by it, including court filing fees, discovery and other litigation costs, and patent prosecution costs, up to an aggregate of $10,000,000.   AVRS will be responsible for costs not recommended by Dominion, as well as travel and ordinary business expenses incurred by AVRS.  Except for the advanced costs by Dominion, AVRS will be responsible for any contingency payments to law firms.  On June 28, 2017 AVRS and Dominion agreed to terminate the August 20, 2015 Letter Agreement.  AVRS did not incur any material early termination penalties in connection of the early termination of the agreement.

On November 1, 2016, Advanced Voice Recognition Systems, Inc. (“AVRS”) entered into a Contingent Fee Agreement (the “Agreement”) with Buether Joe & Carpenter, LLC (“BJC”) pursuant to which BJC will represent AVRS in connection with investigating and asserting claims relating to certain patents, including the negotiation of license agreements and the filing and prosecution of lawsuits, against any potential infringers of rights associated with such patents (the “Patent Rights”)  BJC will handle licensing and litigation activities under the Agreement on a contingent fee basis.  BJC’s fee will depend upon whether AVRS recovers any sums by way of licensing, settlement, trial or otherwise with respect to the Patent Rights.  On June 6, 2017 AVRS and BJC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement.

Item 3. Quantitative and Qualitative Disclosure About Market Risk

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

Item 4.   Controls and Procedures.

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer, who also is our chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) and pursuant to Rules 13a-15(b) and 15d-15(b) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of December 31, 2017. Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act, such as this Form 10-Q, is recorded, processed, summarized and reported, within the time period specified in the SEC’s rules and forms, and that such information is accumulated and is communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Based on our evaluation, our chief executive officer, who also is our chief financial officer, concluded that our disclosure controls and procedures are designed at a reasonable assurance level and were fully effective as of June 30, 2018 in providing reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated  to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

Changes in internal control over financial reporting.

We regularly review our system of internal control over financial reporting and make changes to our processes and systems to improve controls and increase efficiency, while ensuring that we maintain an effective internal control environment. Changes may include such activities as implementing new, more efficient systems, consolidating activities, and migrating processes.

There were no changes in our internal controls over financial reporting that occurred during the period covered by this Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 5. Legal Proceedings

On November 6, 2017 Advanced Voice Recognition Systems, Inc (AVRS) received notice that Meyers & Associates, LLC (M&A) filed Complaint number 2017CV32482 in Arapahoe County District Court on October 30, 2017. The Complaint relates to purported legal fees owed by AVRS.  On January 31, 2018 AVRS entered into a Settlement Agreement and Promissory Note with Meyers & Associates, LLC (M&A).  AVRS promises to pay the principal sum of Fifty-Two Thousand Three Hundred Eighty-Five Dollars and Forty-Six Cents ($52,385.46) as well as accrued interest. AVRS shall pay $1,000 per month on the first day of each month beginning February 1, 2018 and continuing through July 1, 2018 and pay all remaining unpaid principal and accrued interest on August 1, 2018.  The February, March, April, May, June and July payments have been made.

On August 1, 2018 AVRS and M&A entered into an Agreement to Amend Promissory Note. AVRS shall pay $6,000 on or before August 1, 2018, shall pay $1,500 on the first day of each month beginning September 1, 2018 and continuing through November 1, 2018 and shall pay all remaining unpaid principal and accrued interest on December 1, 2018.  The August, September, October and November payments have been paid.

AVRS filed a Complaint in the United States District Court Northern District for Arizona (Case No. 2-18-cv-2083) on July 3, 2018, and alleges that Apple products infringe U.S. Patent No. 7,558,730 entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” (the “‘730 Patent”).  AVRS is seeking, among other things, a Judgement of infringement, past damages no less than a reasonable royalty, attorneys’ fees, pre and post Judgement interest and costs including expenses and disbursements and any other relief deemed proper by the Court.

A case management conference was held in the AVRS, Inc. v. Apple Inc (Case No. 2-18-cv-2083)  case on September 18, 2018 in the Sandra Day O’Connor U.S. Federal Courthouse in Phoenix, Arizona.

Item 6. Exhibits

ITEM 6. EXHIBITS

2.1	Stock Exchange Agreement dated April 14, 2008 between Samoyed Energy Corp. and Certain Shareholders of Advanced Voice Recognition Systems, Inc. (1)
2.2	Agreement and Plan of Merger between Samoyed Energy Corp. and Advanced Voice Recognition Systems, Inc. (2)
2.3	Agreement and Plan of Merger between Advanced Voice Recognition Systems, Inc. and NCC, LLC (7)
3.1	Articles of Incorporation (3)
3.2	Certificate of Change to Articles of Incorporation (4)
3.3	Bylaws (3)
10.1	Termination Agreement dated January 22, 2008 between Samoyed Energy Corp. and 313866 Alberta Ltd. (5)
10.2	Purchase and Sale Agreement dated May 15, 2008 between Samoyed Energy Corp. and Stone Canyon Resources, Inc. (6)
10.3	Purchase Agreement dated January 19, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (9)
10.4	Purchase Agreement dated February 19, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (10)
10.5	Departure of Directors or Certain Officers dated February 26, 2016. (11)
10.6	Purchase Agreement dated March 10, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (12)
10.7	Purchase Agreement dated March 10, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (13)
10.8	Purchase Agreement dated March 22, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (14)
10.9	Purchase Agreement dated July 14, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (15)
10.10	Purchase Agreement dated September 19, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (16)
10.11	Purchase Agreement dated October 11, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (17)
10.12	Purchase Agreement dated October 21, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (18)
10.13	Letter Agreement dated November 1, 2016 between Advanced Voice Recognition Systems, Inc. and BJC. (19)
10.14	Purchase Agreement dated November 16, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (20)
10.15	Purchase Agreement dated December 14, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (21)
10.16	Purchase Agreement dated January 12, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (22)
10.17	Purchase Agreement dated February 3, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (23)
10.18	Purchase Agreement dated February 21, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (24)
10.19	Purchase Agreement dated February 27, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (25)
10.20	Purchase Agreement dated March 23, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (26)
10.21	Letter Agreement March 31, 2017 between Advanced Voice Recognition Systems, Inc. and Schmeiser (27)
10.22	Purchase Agreement dated April 14, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (28)
10.23	Purchase Agreement dated May 1, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (29)
10.24	Purchase Agreement dated May 1, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (30)
10.25	Purchase Agreement dated May 4, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (31)
10.26	Purchase Agreement dated June 5, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (32)
10.27	Purchase Agreement dated June 19, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (33)

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10.28	Letter of Termination dated June 28, 2017 between Advanced Voice Recognition Systems, Inc. and Dominion (34)
10.29	Purchase Agreement dated October 26, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (35)
10.30	Purchase Agreement dated November 9, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (36)
10.31	Purchase Agreement dated December 20, 2017 between Advanced Voice Recognition Systems, Inc. and an Investor. (37)
10.32	Purchase Agreement dated January 21, 2018 between Advanced Voice Recognition Systems, Inc. and an Investor. (38)
10.33	Purchase Agreement dated February 21, 2018 between Advanced Voice Recognition Systems, Inc. and an Investor. (39)
10.34	Purchase Agreement dated March 6, 2018 between Advanced Voice Recognition Systems, Inc. and an Investor. (40)
10.35	Purchase Agreement dated March 19, 2018 between Advanced Voice Recognition Systems, Inc. and an Investor. (41)
10.36	Purchase Agreement dated April 5, 2018 between Advanced Voice Recognition Systems, Inc. and an Investor. (42)
10.37	Purchase Agreement dated April 30, 2018 between Advanced Voice Recognition Systems, Inc. and an Investor. (43)
10.38	Purchase Agreement dated April 30, 2018 between Advanced Voice Recognition Systems, Inc. and an Investor. (44)
10.39	Purchase Agreement dated May 18, 2018 between Advanced Voice Recognition Systems, Inc. and an Investor. (45)
10.40	Letter Agreement dated June 21, 2018 between Advanced Voice Recognition Systems, Inc. and Schmeiser (46)
10.41	Purchase Agreement dated July 17, 2018 between Advanced Voice Recognition Systems, Inc. and an Investor. (47)
10.42	Letter Agreement dated August 1, 2018 between Advanced Voice Recognition Systems, Inc. and Meyers & Associate. (48)
10.43	Letter Agreement dated September 24, 2018 between Advanced Voice Recognition Systems, Inc. and W. Geldenhuys. (49)
14.1	Code of Ethics (7)
21.1	Subsidiaries of the Registrant (7)
31.1	Section 302 Certification – Principal Executive Officer (8)
31.2	Section 302 Certification – Principal Financial Officer (8)
32.1	Section 906 Certification (8)

(1)     Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 1, 2008.

(2)     Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 10, 2008.

(3)     Incorporated by reference from the Company’s Registration Statement on Form SB-2 filed on October 31, 2005.

(4)     Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 18, 2007.

(5)     Incorporated by reference from the Company’s Quarterly Report on Form 10-Q filed on February 14, 2008.

(6)     Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 21, 2008.

(7)      Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 30, 2009 

(8)      Certifications 

(9)     Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 25, 2016

(10)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 23, 2016

(11)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 1, 2016

(12)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 14, 2016

(13)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 14, 2016

(14)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 22, 2016 

(15)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on July 19, 2016

(16)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on September 19, 2016 

(17)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on October 17, 2016 

(18)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on October 25, 2016 

(19)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 7, 2016 

(20)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 21, 2016 

(21)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 14, 2016 

(22)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 13, 2017 

(23)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 8, 2017 

(24)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 27, 2017 

(25)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 3, 2017 

(26)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 28, 2017 

(27)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 4, 2017 

(28)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 18, 2017

(29)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 4, 2017 

(30)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 4, 2017 

(31)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 8, 2017

(32)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 8, 2017  

(33)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 22, 2017

(34)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 28, 2017  

(35)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on October 27, 2017

(36)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 13, 2017

(37)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 21, 2017

(38)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 23, 2018

(39)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 23, 2018

(40)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 9, 2018

14

(41)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 21, 2018

(42)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 9, 2018

(43)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 1, 2018

(44)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 1, 2018

(45)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 21, 2018

(46)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 28, 2018

(47)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on July 20, 2018

(48)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on August 6, 2018

(49)   Incorporated by reference from the Company’s Current Report on Form 8-K filed on September 28, 2018

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		ADVANCED VOICE RECOGNITION SYSTEMS, INC.
Dated November 1, 2018	By:	/s/ Walter Geldenhuys
		Walter Geldenhuys
		President, Chief Executive Officer, and Chief Financial Officer (Principal Executive Officer)
Dated November 1, 2018	By:	/s/ Diane Jakowchuk
		Diane Jakowchuk
		Secretary, Treasurer and Principal Accounting Officer (Principal Accounting Officer)

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Walter Geldenhuys, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Advanced Voice Recognition Systems, Inc.;

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 1, 2018
Signature:	/s/ Walter Geldenhuys
	Walter Geldenhuys
Title:	President, Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Walter Geldenhuys, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Advanced Voice Recognition Systems, Inc.;

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 1, 2018
Signature:	/s/ Walter Geldenhuys
	Walter Geldenhuys
Title:	Chief Financial Officer

EX-32.1

Exhibit 32.1

SECTION 1350 CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Walter Geldenhuys, President, Chief Executive Officer and Chief Financial Officer of Advanced Voice Recognition Systems, Inc. (the Company), certify, that pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code:

(1)	The Company’s Quarterly Report on Form 10-Q for quarterly period September 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2)	Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Report.

/s/ Walter Geldenhuys                       

Walter Geldenhuys

President, Chief Executive Officer and Chief Financial Officer

November 1, 2018

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Document and Entity Information - USD ($)	9 Months Ended
	Sep. 30, 2018	Oct. 31, 2018	Jun. 30, 2017
Details
Registrant Name	Advanced Voice Recognition Systems, Inc
Registrant CIK	0001342936
SEC Form	10-Q
Period End date	Sep. 30, 2018
Fiscal Year End	--12-31
Trading Symbol	avrs
Tax Identification Number (TIN)	980511932
Number of common stock shares outstanding		255,520,268
Public Float			$ 0
Filer Category	Non-accelerated Filer
Current with reporting	Yes
Small Business	true
Emerging Growth Company	true
Ex Transition Period	false
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Entity File Number	000-52390
Entity Incorporation, State Country Name	Nevada
Entity Address, Address Line One	7659 E. Wood Drive
Entity Address, City or Town	Scottsdale
Entity Address, State or Province	Arizona
Entity Address, Postal Zip Code	85260
Entity Address, Address Description	Address of principal executive offices
City Area Code	480
Local Phone Number	704-4183
Phone Fax Number Description	Registrant's telephone number, including area code

XML

Condensed Balance Sheets (September 30, 2018 Unaudited) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Current Assets
Cash and cash equivalents	$ 5,498	$ 7,257
Total Current Assets	5,498	7,257
Non Current Assets
Patent, net	47,064	53,204
Deferred costs	0	3,595
Total Non Current Assets	47,064	56,799
Total Assets	52,562	64,056
Current Liabilities
Accounts payable	75,552	126,502
Payroll	162,382	162,382
Note Payable Meyer & Assoc.	41,252	0
Note Payable AIP	19,935	19,935
Note Payable Related Party	9,000	0
Accrued Interest	7,484	5,981
Total Current Liabilities	315,605	314,800
Stockholders' Deficit
Common Stock, Value	255,520	243,920
Additional paid-in capital	7,817,848	7,788,248
Accumulated Deficit	(8,336,411)	(8,282,912)
Total Stockholders' Deficit	(263,043)	(250,744)
Total Liabilities and Stockholders' Deficit	$ 52,562	$ 64,056

XML

Condensed Balance Sheets (September 30, 2018 Unaudited) - Parenthetical - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Details
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	547,500,000	547,500,000
Common Stock, Shares, Issued	255,520,268	243,920,268
Common Stock, Shares, Outstanding	255,520,268	243,920,268

XML

Statements of Operations (Unaudited) - USD ($)		3 Months Ended		9 Months Ended
		Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Details
Sales		$ 0	$ 0	$ 0	$ 0
Cost of goods sold		0	0	0	0
Gross profit			0		0
Operating expenses:
Compensation		25	4,863	1,419	13,623
Professional fees		3,025	6,690	22,973	36,021
Office		7,841	6,356	19,377	16,871
Travel		158	42	551	298
Other		432	357	2,216	1,886
Total operating expenses		11,481	18,308	46,536	68,699
Loss from operations		(11,481)	(18,308)	(46,536)	(68,699)
Other income and (expense):
Interest expense		(2,392)	(2,900)	(6,963)	(7,565)
Net other expense		(2,392)	(2,900)	(6,963)	(7,565)
Loss before income taxes		(13,873)	(21,208)	(53,499)	(76,264)
Provision for income taxes		0	0	0	0
Loss before extraordinary items		(13,873)	(21,208)	(53,499)	(76,264)
Net Loss		$ (13,873)	$ (21,208)	$ (53,499)	$ (76,264)
Basic and diluted loss per common share	[1]	$ 0	$ 0	$ 0	$ 0
Weighted average number of common shares		255,395,824	240,295,268	252,078,046	235,822,675

[1] less than $0.01 per share

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Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash Flows from Operating Activities:
Net loss	$ (53,499)	$ (76,264)
Adjustments to reconcile net loss to net Cash (used in) operating activities:
Amortization and depreciation	10,716	10,092
Changes in operating liabilities:
Accounts payable and accrued liabilities	2,938	16,160
Net cash used in operating activities	(39,845)	(50,012)
Cash Flows from Investing Activities:
Payments for patents	(980)	0
Payments for deferred costs	0	(1,450)
Net cash used in investing activities	(980)	(1,450)
Cash Flows from Financing Activities:
Proceeds from sale of common stock	41,200	49,500
Proceeds from notes payable	9,000	0
Payments on notes payable	(11,134)	0
Net cash provided by financing activities	39,066	49,500
Net change in cash	(1,759)	(1,962)
Cash and Cash Equivalents, at Carrying Value, Beginning Balance	7,257	9,454
Cash and Cash Equivalents, at Carrying Value, Ending Balance	5,498	7,492
Supplemental Disclosure of Cash Flow Information:
Account payable converted to note payable	52,385	0
Interest	5,460	7,565
Income taxes	$ 0	$ 0

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Note 1. Nature of Operations

9 Months Ended

Sep. 30, 2018

Notes

Note 1. Nature of Operations

On November 6, 2017 Advanced Voice Recognition Systems, Inc (“AVRS”) received notice that Meyers & Associates, LLC filed Complaint number 2017CV32482 in Arapahoe County District Court on October 30, 2017. The Complaint relates to purported legal fees owed by AVRS.  On January 31, 2018 AVRS entered into a Settlement Agreement and Promissory Note with Meyers & Associates, LLC.  AVRS promises to pay the principal sum of Fifty-Two Thousand Three Hundred Eighty-Five Dollars and Forty-Six Cents ($52,385.46) as well as accrued interest. AVRS shall pay $1,000 per month on the first day of each month beginning February 1, 2018 and continuing through July 1, 2018 and pay all

remaining unpaid principal and accrued interest (12% annual) on August 1, 2018.  The February, March, April, May and June payments have been made.  

On August 1, 2018 AVRS and Meyers & Associates entered into an Agreement to Amend Promissory Note. AVRS shall pay $6,000 on or before August 1, 2018, shall pay $1,500 on the first day of each month beginning September 1, 2018 and continuing through November 1, 2018 and shall pay all remaining unpaid principal and accrued interest on December 1, 2018.  The August, September, October and November payments have been paid.

On June 21, 2018, Advanced Voice Recognition Systems, Inc. (“AVRS”) and Buether Joe & Carpenter, LLC (“BJC) entered into a Letter of Engagement for Legal Services Limited Scope Agreement  (“Agreement”) with Schmeiser, Olsen & Watts LLP (“the Firm”) pursuant to which the Firm will serve as local counsel in the United States District Court, District of Arizona.  The Firm has been hired to represent AVRS as local counsel in connection with forthcoming litigation in the U.S. District Court, District of Arizona.    AVRS may terminate the Agreement at any time.

On September 24, 2018, Advanced Voice Recognition Systems, Inc., a Nevada corporation (“AVRS”, “we” or “us”), entered into Promissory Note with Walter Geldenhuys, who is our President, Chief Executive Officer and Chief Financial Officer, and who serves as a member of our Board of Directors.  The Promissory Note is effective as of September 24, 2018 in the principal amount of $9,000 with a maturity date of the Promissory Note September 24, 2019.  Interest at 4% per annum was charged and accrued at September 30, 2018.

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Note 2. Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Notes

Note 2. Significant Accounting Policies

Note 2.     Significant Accounting Policies

Unaudited Financial Information

The accompanying financial information at September 30, 2018 and for the nine months ended September 30, 2018 and 2017 is unaudited.  In the opinion of management, all normal and recurring adjustments which are necessary to provide a fair presentation of the Company’s financial position at September 30, 2018 and its operating results for the nine months ended September 30, 2018 and 2017 have been made.  Certain information and footnote data necessary for a fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2017.  The results of operations for the nine months ended September 30, 2018 are not necessarily an indication of operating results to be expected for the year ending December 31, 2018.

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities exceed assets and there is a capital deficiency of $263,043 and no significant revenues.  The Company may be unable to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.   During the twelve months ended December 31, 2017 the Company received an aggregate of $60,000 from the sale of shares in private offerings of its common stock.  During the nine months ended September 30, 2018 the Company received an aggregate of $41,200 from the sale of shares in private offerings of its common stock.

The Company’s current operations are related to patent monetization and filing of additional patents.  The Company has entered into a letter agreement with Dominion Harbor Group, LLC to provide strategic advisory services to AVRS.  Dominion has agreed to advanced costs up to an aggregate of $10,000,000. On June 28, 2017 the Company and Dominion agreed to terminate the August 20, 2015 Letter Agreement.  The Company did not incur any material early termination penalties.  In addition the Company has revised the Contingent Fee Agreement with Buether Joe & Carpenter, LLC which will represent AVRS in connection with investigating and asserting claims to the AVRS patents including licensing and litigation activities. Any and all advanced costs will only become liabilities if successful.  On June 6, 2017 AVRS and BJC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement.  There is no guarantee that AVRS will be able to provide the capital required for the Company to continue as a going concern.

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Basis of Consolidation

The consolidated financial statements include our accounts and those of NCC, LLC which merged with and into AVRS, Inc. March 25, 2009. Intercompany transactions and balances have been eliminated. The accounts, results of operations and cash flows of acquired companies are included from their respective acquisition dates.

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with original maturities of three months or less when acquired to be cash equivalents. The Company had cash at September 30, 2018 of $5,498, $7,257 at December 31, 2017 and $7,492 cash at September 30, 2017.  No amounts resulted from cash equivalents.

Financial Instruments

The carrying amounts of cash, receivables and current liabilities approximate fair value due to the short-term maturity of the instruments.

Fixed Assets

Fixed assets are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, ranging from three to five years. Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred. The cost and related accumulated depreciation of property and equipment sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.

Income Taxes

Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the recorded book basis and the tax basis of assets and liabilities for financial and income tax reporting. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future federal income taxes.  The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company’s financial condition, results of operations, or cash flow.  Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740.  The Company did not record a cumulative effect adjustment related to the adoption of ASC 740.

Research and Development Costs

Research and development costs are expensed in the period incurred.

Patents, Deferred Costs and Amortization

Patents consist of costs incurred to acquire issued patents. Amortization commences once a patent is granted. Costs incurred to acquire patents that have not been issued are reported as deferred costs. On April 3, 2018 U.S. Patent #9,934,786 entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” was issued by the U.S patent and Trademark Office. Deferred costs of $4,575 were capitalized and amortization began in the period.  The Company amortizes its patents over an estimated useful life of twenty years.

Impairment and Disposal of Long-Lived Assets

The Company evaluates the carrying value of its long-lived assets under the provisions of Statement of Financial Accounting Standard (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” now referred to as ASC 360-10 Property, Plant, and Equipment – “Impairment or Disposal of Long Lived Assets” subsections” . ASC 306-10 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted future cash flows estimated to be generated by those assets are less than the assets’ carrying amount. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying value or fair value, less costs to sell.  The Company’s last impairment analysis was completed effective December 31, 2017.  Impairment recorded for each of the nine months ended September 30, 2018 and 2017 was $-0-.

Loss per Common Share

The Company reports net loss per share using a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. At September 30, 2018 and 2017, there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding.

Fair Value of Financial Instruments

The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision.  Changes in assumptions could significantly affect these estimates.  We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.

The FASB Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:

Level 1:	Quoted prices in active markets for identical assets or liabilities.
Level 2:	Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.
Level 3:	Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

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Note 3. Intangible and Fixed Assets

9 Months Ended

Sep. 30, 2018

Notes

Note 3. Intangible and Fixed Assets

Note 3.     Intangible and Fixed Assets

Intangible Assets

The Company monitors the anticipated outcome of legal actions, and if it determines that the success of the defense of a patent is probable, and so long as the Company believes that the future economic benefit of the patent will be increased, the Company capitalizes external legal costs incurred in the defense of the patent. Upon successful defense of litigation, the amounts previously capitalized are amortized over the remaining life of the patent.

On July 7, 2009, U.S. Patent # 7,558,730, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 7, 2009 and ending 20 years from the application date of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2009 and the Company began amortization.

On May 24, 2011, U.S. Patent #7,949,534, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning May 24, 2011 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended June 30, 2011 and the Company began amortization.

On March 6, 2012, U.S. Patent #8,131,557, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning March 6, 2012 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended March 31, 2012 and the Company began amortization.

On July 30, 2013, U.S. Patent #8,498,871, entitled “Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning on July 30, 2013 and ending 20 years from the application date of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2013 and the Company began amortization.

On June 27, 2013, the Company filed two additional continuation applications 13/928/381 and 13/928,383 with the U.S. Patent and Trademark Office entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols.”  On August 31, 2015, Application 13/928,381 was abandoned by the Company.  Deferred costs were charged to operations the quarter ended September 30, 2015.

On September 22, 2015, U.S. Patent #9,142,217, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office. In accordance with 35 U.S.C. 154, the patent shall be for a term beginning September 22, 2015 and ending 20 years from the application date of the parent application (US Patent No. 7,558,730) of November 27, 2001, or November 27, 2021.  The deferred fees were capitalized during the quarter ended September 30, 2015 and the Company began amortization.

On April 3, 2018, U.S. Patent #9,934,786, entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,” was issued by the U.S. Patent and Trademark Office.  In accordance with 35 U.S.C. 154, the patent shall be for a term beginning April 3, 2018 and ending 20 years from the application date of the parent application (U.S. Patent #7,558,730) of November 27, 2001 or November 27, 2021.  The deferred costs were capitalized during the quarter ended June 30, 2018 and the Company began amortization.

Amortization at December 31, 2017 is as follows:

SCHEDULE OF INTANGIBLE ASSETS

Ended December 31, 2017
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277	$	39,882	$	18,395
7,949,534		3,365		2,113		1,252
8,131,557		5,092		3,046		2,046
8,498,871		21,114		11,183		9,931
9,142,217		35,068		13,488		21,580
	$	122,916	$	69,712	$	53,204

Amortization at September 30, 2018 is as follows:

Ended September 30, 2018
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277		43,401		14,876
7,949,534		3,365		2,347		1,018
8,131,557		5,092		3,439		1,653
8,498,871		21,114		13,082		8,032
9,142,217		35,068		17,534		17,534
9,934,786		4,575		624		3,951
	$	127,491	$	80,427	$	47,064

Amortization expense totaled $10,716 and $10,092 for the nine months ended September 30, 2018 and 2017.  Estimated aggregate amortization expense for each of the next four years is as follows:

SCHEDULE OF FUTURE AMORTIZATION

Year ending September 30,
2018		3,674
2019		14,702
2020		14,702
2021		13,986
	$	47,064

Fixed Assets

Fixed assets were fully depreciated in the period ending December 31, 2017.  

PROPERTY PLANT AND EQUIPMENT

		December 31, 2017
Computer equipment	$	6,627
Computer software		3,640
		10,267
Less accumulated depreciation		(10,267)
Property and Equipment, Net	$	0

		September 30, 2018		September 30, 2017
Computer equipment	$	6,627	$	6,627
Computer software		3,640		3,640
		10,267		10,267
Less accumulated depreciation		(10,267)		(10,267)
Property and Equipment, Net	$	0	$	0

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Note 4. Related Party Transactions

9 Months Ended

Sep. 30, 2018

Notes

Note 4. Related Party Transactions

Note 4.     Related Party Transactions

Related Parties Transactions and Indebtedness

During the years from 2000 through 2013, certain officers advanced the Company working capital to maintain the Company’s operations. The Company owed the officers $9,000 and -0- at September 30, 2018 and 2017 respectively.  The Company also owed the officers aggregate of $162,382 at September 30, 2018 and December 31, 2017 for accrued payroll.  During the period of nine months ending September 30, 2018, and September 30, 2017 the Company paid gross payroll of $1,419 and $13,623 to the CEO and for payroll expenses. On September 24, 2018, Walter Geldenhuys, who is our President, Chief Executive Officer and Chief Financial Officer, and who serves as a member of our Board of Directors loaned the Company $9,000.  During the nine month period ending September 30, 2018, AVRS completed Stock Purchase Agreements totaling 11,600,000 shares of AVRS stock to four shareholders.  All shares were paid in the period ending September 30, 2018, for a total amount of $41,200.  At period ending September 30, 2018 one shareholder owned 5.30% of the issued and outstanding stock.  

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Note 5. Income Taxes

9 Months Ended

Sep. 30, 2018

Notes

Note 5. Income Taxes

Note 5.     Income Taxes

A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows.

INCOME TAXES

	September 30, 2018	December 31, 2017
U.S. federal statutory graduated rate	21.00%	21.00%
State income tax rate, net of federal benefit	0.00%	0.00%
Contributed services	00.00%	-00.68%
Costs capitalized under Section 195	-21.00%	-20.32%
Effective rate	0.00%	0.00%

The Company is considered a start-up company for income tax purposes. As of September 30, 2018, the Company had not commenced its trade operations, so all costs were capitalized under Section 195. Accordingly, the Company had no net operating loss carry forwards at September 30, 2018.

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Note 6 . Concentration of Risk

9 Months Ended

Sep. 30, 2018

Notes

Note 6 . Concentration of Risk

Note 6 .    Concentration of Risk

Beginning March 31, 2010, through September 30, 2018, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of $250,000, at all FDIC-insured institutions.  On September 30, 2018, the Company had cash balances at one FDIC insured financial institution of $5,498 in non-interest bearing accounts that were fully insured by the FDIC.

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Note 7. Stockholder Equity / (Deficit)

9 Months Ended

Sep. 30, 2018

Notes

Note 7. Stockholder Equity / (Deficit)

Note 7.Stockholder Equity / (Deficit) 

The Company has issued shares of its common stock pursuant to certain agreements as described in Note 1.

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Note 8 . Subsequent Events

9 Months Ended

Sep. 30, 2018

Notes

Note 8 . Subsequent Events

Note 8 .    Subsequent Events

On August 1, 2018 AVRS and Meyers & Associates, LLC entered into an Agreement to Amend Promissory Note. AVRS shall pay $6,000 on or before August 1, 2018, shall pay $1,500 on the first day of each month beginning September 1, 2018 and continuing through November 1, 2018 and shall pay all remaining unpaid principal and accrued interest on December 1, 2018.  The August, September, October and November payments have been paid.

On October 24, 2018 Walter Geldenhuys advanced the Company $4,000.

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Note 2. Significant Accounting Policies: Unaudited Financial Information (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Unaudited Financial Information

Unaudited Financial Information

The accompanying financial information at September 30, 2018 and for the nine months ended September 30, 2018 and 2017 is unaudited.  In the opinion of management, all normal and recurring adjustments which are necessary to provide a fair presentation of the Company’s financial position at September 30, 2018 and its operating results for the nine months ended September 30, 2018 and 2017 have been made.  Certain information and footnote data necessary for a fair presentation of financial position and results of operations in conformity with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is therefore suggested that these financial statements be read in conjunction with the summary of significant accounting policies and notes to financial statements included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2017.  The results of operations for the nine months ended September 30, 2018 are not necessarily an indication of operating results to be expected for the year ending December 31, 2018.

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Note 2. Significant Accounting Policies: Going Concern (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Going Concern

Going Concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. Liabilities exceed assets and there is a capital deficiency of $263,043 and no significant revenues.  The Company may be unable to continue as a going concern for a reasonable period of time.

The financial statements do not include any adjustments relating to the recoverability and classification of assets and liabilities that might be necessary should the Company be unable to continue as a going concern. The Company’s continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations on a timely basis and ultimately to attain profitability.   During the twelve months ended December 31, 2017 the Company received an aggregate of $60,000 from the sale of shares in private offerings of its common stock.  During the nine months ended September 30, 2018 the Company received an aggregate of $41,200 from the sale of shares in private offerings of its common stock.

The Company’s current operations are related to patent monetization and filing of additional patents.  The Company has entered into a letter agreement with Dominion Harbor Group, LLC to provide strategic advisory services to AVRS.  Dominion has agreed to advanced costs up to an aggregate of $10,000,000. On June 28, 2017 the Company and Dominion agreed to terminate the August 20, 2015 Letter Agreement.  The Company did not incur any material early termination penalties.  In addition the Company has revised the Contingent Fee Agreement with Buether Joe & Carpenter, LLC which will represent AVRS in connection with investigating and asserting claims to the AVRS patents including licensing and litigation activities. Any and all advanced costs will only become liabilities if successful.  On June 6, 2017 AVRS and BJC revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Dominion Harbor Letter Agreement.  There is no guarantee that AVRS will be able to provide the capital required for the Company to continue as a going concern.

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Note 2. Significant Accounting Policies: Use of Estimates (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Use of Estimates

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

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Note 2. Significant Accounting Policies: Basis of Consolidation (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Basis of Consolidation

Basis of Consolidation

The consolidated financial statements include our accounts and those of NCC, LLC which merged with and into AVRS, Inc. March 25, 2009. Intercompany transactions and balances have been eliminated. The accounts, results of operations and cash flows of acquired companies are included from their respective acquisition dates.

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Note 2. Significant Accounting Policies: Cash and Cash Equivalents (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid debt instruments with original maturities of three months or less when acquired to be cash equivalents. The Company had cash at September 30, 2018 of $5,498, $7,257 at December 31, 2017 and $7,492 cash at September 30, 2017.  No amounts resulted from cash equivalents.

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Note 2. Significant Accounting Policies: Financial Instruments (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Financial Instruments

Financial Instruments

The carrying amounts of cash, receivables and current liabilities approximate fair value due to the short-term maturity of the instruments.

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Note 2. Significant Accounting Policies: Fixed Assets (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Fixed Assets

Fixed Assets

Fixed assets are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets, ranging from three to five years. Expenditures for additions and improvements are capitalized, while repairs and maintenance costs are expensed as incurred. The cost and related accumulated depreciation of property and equipment sold or otherwise disposed of are removed from the accounts and any gain or loss is recorded in the year of disposal.

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Note 2. Significant Accounting Policies: Income Taxes (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Income Taxes

Income Taxes

Income taxes are provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes related primarily to differences between the recorded book basis and the tax basis of assets and liabilities for financial and income tax reporting. Deferred tax assets and liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses that are available to offset future taxable income and tax credits that are available to offset future federal income taxes.  The Company believes that its income tax filing positions and deductions will be sustained on audit and does not anticipate any adjustments that will result in a material adverse effect on the Company’s financial condition, results of operations, or cash flow.  Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740.  The Company did not record a cumulative effect adjustment related to the adoption of ASC 740.

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Note 2. Significant Accounting Policies: Research and Development Costs (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Research and Development Costs

Research and Development Costs

Research and development costs are expensed in the period incurred.

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Note 2. Significant Accounting Policies: Patents, Deferred Costs and Amortization (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Patents, Deferred Costs and Amortization

Patents, Deferred Costs and Amortization

Patents consist of costs incurred to acquire issued patents. Amortization commences once a patent is granted. Costs incurred to acquire patents that have not been issued are reported as deferred costs. On April 3, 2018 U.S. Patent #9,934,786 entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols” was issued by the U.S patent and Trademark Office. Deferred costs of $4,575 were capitalized and amortization began in the period.  The Company amortizes its patents over an estimated useful life of twenty years.

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Note 2. Significant Accounting Policies: Impairment and Disposal of Long-Lived Assets (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Impairment and Disposal of Long-Lived Assets

Impairment and Disposal of Long-Lived Assets

The Company evaluates the carrying value of its long-lived assets under the provisions of Statement of Financial Accounting Standard (“SFAS”) No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets” now referred to as ASC 360-10 Property, Plant, and Equipment – “Impairment or Disposal of Long Lived Assets” subsections” . ASC 306-10 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted future cash flows estimated to be generated by those assets are less than the assets’ carrying amount. If such assets are impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying value or fair value, less costs to sell.  The Company’s last impairment analysis was completed effective December 31, 2017.  Impairment recorded for each of the nine months ended September 30, 2018 and 2017 was $-0-.

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Note 2. Significant Accounting Policies: Loss per Common Share (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Loss per Common Share

Loss per Common Share

The Company reports net loss per share using a dual presentation of basic and diluted loss per share. Basic net loss per share excludes the impact of common stock equivalents. Diluted net loss per share utilizes the average market price per share when applying the treasury stock method in determining common stock equivalents. At September 30, 2018 and 2017, there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding.

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Note 2. Significant Accounting Policies: Fair Value of Financial Instruments (Policies)

9 Months Ended

Sep. 30, 2018

Policies

Fair Value of Financial Instruments

Fair Value of Financial Instruments

The carrying amounts of cash and current liabilities approximate fair value because of the short-term maturity of these items. These fair value estimates are subjective in nature and involve uncertainties and matters of significant judgment, and, therefore, cannot be determined with precision.  Changes in assumptions could significantly affect these estimates.  We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.

The FASB Accounting Standards Codification (ASC) clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. It also requires disclosure about how fair value is determined for assets and liabilities and establishes a hierarchy for which these assets and liabilities must be grouped, based on significant levels of inputs as follows:

Level 1:	Quoted prices in active markets for identical assets or liabilities.
Level 2:	Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.
Level 3:	Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

The determination of where assets and liabilities fall within this hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

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Note 3. Intangible and Fixed Assets: Schedule of Amortization of Intangible Assets (Tables)

9 Months Ended

Sep. 30, 2018

Tables/Schedules

Schedule of Amortization of Intangible Assets

Amortization at December 31, 2017 is as follows:

SCHEDULE OF INTANGIBLE ASSETS

Ended December 31, 2017
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277	$	39,882	$	18,395
7,949,534		3,365		2,113		1,252
8,131,557		5,092		3,046		2,046
8,498,871		21,114		11,183		9,931
9,142,217		35,068		13,488		21,580
	$	122,916	$	69,712	$	53,204

Amortization at September 30, 2018 is as follows:

Ended September 30, 2018
U.S. Patent #		Carrying Value		Amortization		Balance
7,558,730	$	58,277		43,401		14,876
7,949,534		3,365		2,347		1,018
8,131,557		5,092		3,439		1,653
8,498,871		21,114		13,082		8,032
9,142,217		35,068		17,534		17,534
9,934,786		4,575		624		3,951
	$	127,491	$	80,427	$	47,064

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Note 3. Intangible and Fixed Assets: Schedule of future amortization (Tables)

9 Months Ended

Sep. 30, 2018

Tables/Schedules

Schedule of future amortization

SCHEDULE OF FUTURE AMORTIZATION

Year ending September 30,
2018		3,674
2019		14,702
2020		14,702
2021		13,986
	$	47,064

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Note 3. Intangible and Fixed Assets: Schedule of Property, Plant and Equipment (Tables)

9 Months Ended

Sep. 30, 2017

Tables/Schedules

Schedule of Property, Plant and Equipment

PROPERTY PLANT AND EQUIPMENT

		December 31, 2017
Computer equipment	$	6,627
Computer software		3,640
		10,267
Less accumulated depreciation		(10,267)
Property and Equipment, Net	$	0

		September 30, 2018		September 30, 2017
Computer equipment	$	6,627	$	6,627
Computer software		3,640		3,640
		10,267		10,267
Less accumulated depreciation		(10,267)		(10,267)
Property and Equipment, Net	$	0	$	0

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Note 5. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables)

9 Months Ended

Sep. 30, 2018

Tables/Schedules

Schedule of Effective Income Tax Rate Reconciliation

INCOME TAXES

	September 30, 2018	December 31, 2017
U.S. federal statutory graduated rate	21.00%	21.00%
State income tax rate, net of federal benefit	0.00%	0.00%
Contributed services	00.00%	-00.68%
Costs capitalized under Section 195	-21.00%	-20.32%
Effective rate	0.00%	0.00%

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Note 2. Significant Accounting Policies: Going Concern (Details) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Details
Total Stockholders' Deficit	$ (263,043)		$ (250,744)
Proceeds from sale of common stock	$ 41,200	$ 49,500	$ 60,000

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Note 2. Significant Accounting Policies: Cash and Cash Equivalents (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Details
Cash and cash equivalents	$ 5,498	$ 7,257	$ 7,492	$ 9,454

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Note 2. Significant Accounting Policies: Impairment and Disposal of Long-Lived Assets (Details) - USD ($)	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Details
Impairment of Long-Lived Assets to be Disposed of	$ 0	$ 0

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Note 3. Intangible and Fixed Assets: Schedule of Amortization of Intangible Assets (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
U.S. Patent # 7,558,730
Carrying Value	$ 58,277	$ 58,277
Amortization	43,401	39,882
Balance	14,876	18,395
U.S. Patent # 7,949,534
Carrying Value	3,365	3,365
Amortization	2,347	2,113
Balance	1,018	1,252
U.S. Patent # 8,131,557
Carrying Value	5,092	5,092
Amortization	3,439	3,046
Balance	1,653	2,046
U.S. Patent # 8,498,871
Carrying Value	21,114	21,114
Amortization	13,082	11,183
Balance	8,032	9,931
U.S. Patent # 9,142,217
Carrying Value	35,068	35,068
Amortization	17,534	13,488
Balance	17,534	21,580
U.S. Patents
Carrying Value	127,491	122,916
Amortization	80,427	69,712
Balance	47,064	$ 53,204
U.S. Patent # 9,934,786
Carrying Value	4,575
Amortization	624
Balance	$ 3,951

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Note 3. Intangible and Fixed Assets: Schedule of future amortization (Details)	Sep. 30, 2018 USD ($)
Details
2018	$ 3,674
2019	14,702
2020	14,702
2021	13,986
Balance	$ 47,064

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Note 3. Intangible and Fixed Assets: Schedule of Property, Plant and Equipment (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017
Details
Computer equipment	$ 6,627	$ 6,627	$ 6,627
Computer software	3,640	3,640	3,640
Less accumulated depreciation	(10,267)	(10,267)	(10,267)
Property and Equipment, Net	$ 0	$ 0	$ 0

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Note 4. Related Party Transactions (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Details
Note Payable Related Party	$ 9,000	$ 0	$ 9,000	$ 0	$ 0
Payroll	162,382		162,382		162,382
Compensation	$ 25	$ 4,863	1,419	13,623
Proceeds from sale of common stock			$ 41,200	$ 49,500	$ 60,000

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Note 5. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details)	Sep. 30, 2018	Dec. 31, 2017
Details
U.S. federal statutory graduated rate	21.00%	21.00%
State income tax rate, net of federal benefit	0.00%	0.00%
Contributed services	0.00%	(0.68%)
Costs capitalized under Section 195	(21.00%)	(20.32%)
Effective rate	0.00%	0.00%

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Note 5. Income Taxes (Details)	Sep. 30, 2018 USD ($)
Details
Operating Loss Carryforwards	$ 0

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Note 6 . Concentration of Risk (Details) - USD ($)	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Details
Cash and cash equivalents	$ 5,498	$ 7,257	$ 7,492	$ 9,454

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Note 8 . Subsequent Events (Details)	9 Months Ended
	Sep. 30, 2018
Event 1
Subsequent Event, Date	Aug. 01, 2018
Subsequent Event, Description	AVRS and Meyers & Associates, LLC entered into an Agreement to Amend Promissory Note
Event 2
Subsequent Event, Date	Oct. 24, 2018
Subsequent Event, Description	Walter Geldenhuys advanced the Company $4,000