0001342936-18-000044.txt : 20180924 0001342936-18-000044.hdr.sgml : 20180924 20180924152634 ACCESSION NUMBER: 0001342936-18-000044 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 46 CONFORMED PERIOD OF REPORT: 20170930 FILED AS OF DATE: 20180924 DATE AS OF CHANGE: 20180924 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Advanced Voice Recognition Systems, Inc CENTRAL INDEX KEY: 0001342936 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 980511932 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-52390 FILM NUMBER: 181083387 BUSINESS ADDRESS: STREET 1: 7659 E. WOOD DRIVE CITY: SCOTTSDALE, STATE: AZ ZIP: 85260 BUSINESS PHONE: 480-704-4183 MAIL ADDRESS: STREET 1: 7659 E. WOOD DRIVE CITY: SCOTTSDALE, STATE: AZ ZIP: 85260 FORMER COMPANY: FORMER CONFORMED NAME: SAMOYED ENERGY CORP DATE OF NAME CHANGE: 20051031 10-Q/A 1 avrs_10q09302017a.htm 10Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q /A

Amendment No. 1

 

(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, 2017

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

98-0511932

(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 November 3, 2017 241,170,268 shares of common stock are issued and outstanding.

 


 

EXPLANATORY NOTE

 

The purpose of this Amendment No. 1 to our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2017 (“Form 10-Q”) is to include text on cover page regarding Emerging Growth Company and to correct yes regarding submission on the Company website which was filed with the Securities and Exchange Commission on November 14, 2017.

 

PART II — OTHER INFORMATION

 

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(49)

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 10, 2012 between Advanced Voice Recognition Systems, Inc. and an Investor. (9)

10.4

Purchase Agreement dated January 25, 2012 between Advanced Voice Recognition Systems, Inc. and four Investors. (10)

10.5

Purchase Agreement dated August 17, 2012 between Advanced Voice Recognition Systems, Inc. and two Investors. (11)

10.6

Purchase Agreement dated November 21, 2012 between Advanced Voice Recognition Systems, Inc. and two Investors. (12)

10.7

Purchase Agreement dated November 23, 2012 between Advanced Voice Recognition Systems, Inc. and an Investor. (13)

10.8

Purchase Agreement dated May 24, 2013 between Advanced Voice Recognition Systems, Inc. and an Investor. (14)

10.9

Purchase Agreement dated June 13, 2013 between Advanced Voice Recognition Systems, Inc. and an Investor. (15)

10.10

Purchase Agreement dated July 18, 2013 between Advanced Voice Recognition Systems, Inc. and an Investor. (16)

10.11

Purchase Agreement dated August 1, 2013 between Advanced Voice Recognition Systems, Inc. and an Investor. (17)

10.12

Purchase Agreement dated August 21, 2013 between Advanced Voice Recognition Systems, Inc. and an Investor. (18)

10.13

Purchase Agreement dated September 3, 2013 between Advanced Voice Recognition Systems, Inc. and an Investor. (19)

10.14

Purchase Agreement dated September 25, 2013 between Advanced Voice Recognition Systems, Inc. and an Investor. (20)

10.15

Purchase Agreement dated October 1, 2013 between Advanced Voice Recognition Systems, Inc. and an Investor. (21)

10.16

Purchase Agreement dated October 22, 2013 between Advanced Voice Recognition Systems, Inc. and an Investor. (22)

10.17

Purchase Agreement dated October 28, 2013 between Advanced Voice Recognition Systems, Inc. and an Investor. (23)

10.18

Purchase Agreement dated December 10, 2013 between Advanced Voice Recognition Systems, Inc. and an Investor. (24)

10.19

Purchase Agreement dated January 24, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (25)

10.20

Purchase Agreement dated February 18, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (26)

10.21

Purchase Agreement dated February 24, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (27)

10.22

Purchase Agreement dated May 8, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (28)

10.23

Purchase Agreement dated May 9, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (29)

10.24

Purchase Agreement dated May 19, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (30)

10.25

Purchase Agreement dated May 20, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (31)

10.26

Purchase Agreement dated June 18, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (32)

10.27

Purchase Agreement dated July 7, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (33)

10.28

Purchase Agreement dated December 5, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (34)

10.29

Purchase Agreement dated December 29, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (35)

10.30

Purchase Agreement dated December 30, 2014 between Advanced Voice Recognition Systems, Inc. and an Investor. (36)

10.31

Letter Agreement dated March 16, 2015 between Advanced Voice Recognition Systems, Inc. and Adapt IP. (37)

10.32

Purchase Agreement dated March 17, 2015 between Advanced Voice Recognition Systems, Inc. and an Investor. (38)

10.33

Letter Agreement dated April 20, 2015 between Advanced Voice Recognition Systems, Inc. and Adapt IP. (39)

10.34

Purchase Agreement dated June 3, 2015 between Advanced Voice Recognition Systems, Inc. and an Investor. (40)

10.35

Purchase Agreement dated July 31, 2015 between Advanced Voice Recognition Systems, Inc. and an Investor. (41)

10.36

Letter Agreement dated August 21, 2015 between Advanced Voice Recognition Systems, Inc. and Dominion. (42)

10.37

Purchase Agreement dated August 24, 2015 between Advanced Voice Recognition Systems, Inc. and an Investor. (43)

10.38

Purchase Agreement dated September 1, 2015 between Advanced Voice Recognition Systems, Inc. and an Investor. (44)

10.39

Purchase Agreement dated September 28, 2015 between Advanced Voice Recognition Systems, Inc. and an Investor. (45)

10.40

Purchase Agreement dated October 14, 2015 between Advanced Voice Recognition Systems, Inc. and an Investor. (46)

10.41

Purchase Agreement dated October 14, 2015 between Advanced Voice Recognition Systems, Inc. and an Investor. (47)

10.42

Purchase Agreement dated November 30, 2015 between Advanced Voice Recognition Systems, Inc. and an Investor. (48)

10.43

Purchase Agreement dated January 19, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (49)

10.44

Purchase Agreement dated February 19, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (50)

10.45

Departure of Directors or Certain Officers  dated February 26, 2016 (51)

10.46

Purchase Agreement dated March 10, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (52)

10.47

Purchase Agreement dated March 10, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (53)

10.48

10.49

10.50

10.51

10.52

10.53

10.54

10.55

10.56

10.57

10.58

10.59

10.60

10.61

10.62

10.63

10.64

10.65

10.66

10.67

10.68

Purchase Agreement dated March 22, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor. (54)

Purchase Agreement dated July 14, 2016 between Advanced Voice Recognition Systems, Inc. and an Investor (55)

Purchase Agreement dated September 19, 2016 between Advanced Voice Recognition Systems, Inc and an Investor (56)

Purchase Agreement dated October 11, 2016 between Advanced Voice Recognition Systems, Inc and an Investor (57)

Purchase Agreement dated October 21, 2016 between Advanced Voice Recognition Systems, Inc and an Investor (58)

Purchase Agreement dated November 16, 2016 between Advanced Voice Recognition Systems, Inc and an Investor (59)

Purchase Agreement dated December 14, 2016 between Advanced Voice Recognition Systems, Inc and an Investor (60)

Purchase Agreement dated January 12, 2017 between Advanced Voice Recognition Systems, Inc and an Investor (61)

Purchase Agreement dated February 3, 2017 between Advanced Voice Recognition Systems, Inc and an Investor (62)

Purchase Agreement dated February 21, 2017 between Advanced Voice Recognition Systems, Inc and an Investor (63)

Purchase Agreement dated February 27, 2017 between Advanced Voice Recognition Systems, Inc and an Investor (64)

Purchase Agreement dated March 23, 2017 between Advanced Voice Recognition Systems, Inc and an Investor (65)

Letter Agreement dated March 31, 2017 between Advanced Voice Recognition Systems, Inc and Schmeiser (66)

Purchase Agreement dated April 14, 2017 between Advanced Voice Recognition Systems, Inc and an Investor (67)

Purchase Agreement dated May 1, 2017 between Advanced Voice Recognition Systems, Inc and an Investor (68)

Purchase Agreement dated May 1, 2017 between Advanced Voice Recognition Systems, Inc and an Investor (69)

Purchase Agreement dated May 4, 2017 between Advanced Voice Recognition Systems, Inc and an Investor (70)

Purchase Agreement dated June 5, 2017 between Advanced Voice Recognition Systems, Inc and an Investor (71)

Purchase Agreement dated June 19, 2017 between Advanced Voice Recognition Systems, Inc and an Investor (72)

Letter of Termination dated June 28, 2017 between Advanced Voice Recognition Systems, Inc and Dominion (73)

Purchase Agreement dated October 26, 2017 between Advanced Voice Recognition Systems, Inc and an investor (74)

 

 

 

 

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

Certification Pursuant to 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002(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)      Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 15, 2010

(9)      Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 17, 2012 

(10)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 30, 2012 

(11)      Incorporated by reference from the Company’s Current Report on Form 8-K filed on August 21, 2012 

(12)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 26, 2012 

(13)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 28, 2012 

(14)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 31, 2013 

(15)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 18, 2013 

(16)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on July 22, 2013 

(17)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on August 2, 2013 

(18)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on August 26, 2013 

(19)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on September 6, 2013 

(20)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on September 25, 2013 

(21)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on October 7, 2013 

(22)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on October 28, 2013 

(23)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on November 1, 2013 

(24)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 16, 2013 

(25)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 29, 2014 

(26)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 20, 2014 

(27)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on February 25, 2014 

(28)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 13, 2014 

(29)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 14, 2014 

(30)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 23, 2014 

(31)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on May 27, 2014 

(32)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 20, 2014 

(33)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on July 14, 2014 

(34)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 10, 2014 

(35)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 2, 2014 

(36)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on January 12, 2015 

(37)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 20, 2015 

(38)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on March 23, 2015 

(39)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on April 23, 2015 

(40)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on June 8, 2015 

(41)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on August 5, 2015 

(42)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on August 21, 2015 

(43)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on August 28, 2015 

(44)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on September 4, 2015 

(45)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on October 2, 2015 

(46)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on October 19, 2015 

(47)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on October 19, 2015 

(48)    Incorporated by reference from the Company’s Current Report on Form 8-K filed on December 2, 2015 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 


 

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 September 24, 2018

By:

/s/ Walter Geldenhuys

 

 

Walter Geldenhuys

 

 

President, Chief Executive Officer, and Chief Financial Officer

(Principal Executive Officer)

 

 

 

Dated September 24, 2017

By:

/s/ Diane Jakowchuk

 

 

Diane Jakowchuk

 

 

Secretary, Treasurer and Principal Accounting Officer

(Principal Accounting Officer)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- 2 -

 

EX-101.CAL 2 avoi-20170930_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT EX-101.DEF 3 avoi-20170930_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT EX-101.INS 4 avoi-20170930.xml XBRL INSTANCE DOCUMENT 10-Q 2017-09-30 false Advanced Voice Recognition Systems, Inc. 0001342936 avoi --12-31 240295268 1913992 Smaller Reporting Company Yes No No 2017 Q3 7492 9454 66658 2935 1485 59501 68143 66993 77597 124059 109393 162382 162383 19935 19935 5482 3987 311858 295698 311543 295698 240295 230395 7781373 7741773 -8266533 -8190269 -244865 -218101 66993 77597 4863 13623 3871 6690 3036 36021 20749 6356 7707 16871 19098 42 298 319 357 360 1886 1165 18308 11103 68699 45202 -18308 -11103 -68699 -45202 -2900 -1513 -7565 -4387 -2900 -1513 -7565 -4387 -21208 -12616 240295268 228058601 235822675 227016009 -76264 -49589 10092 10644 16160 5694 -50012 -33251 -1450 -1450 49500 30875 600 49500 30275 -1962 -2976 9454 8997 7492 6021 7565 4387 <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Company Overview</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>The operations of Advanced Voice Recognition Systems, Inc. (&#147;AVRS&#148; or the &#147;Company&#148;), 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.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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&#146;s markets caused NCC, LLC to suspend its operations.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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).&#160;&#160; 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.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Stock Exchange Agreement</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On April 28, 2008, the Company entered into a Stock Exchange Agreement (&#147;the Agreement&#148;) with Samoyed Energy Corp., a Nevada corporation (&#147;Samoyed&#148;), which resulted in a reverse acquisition.&#160; The Agreement provided for the reorganization of AVRS with Samoyed. In connection with the Agreement, Samoyed acquired all of the issued and outstanding common shares of AVRS in exchange for 140 million shares of Samoyed&#146;s common stock.&#160; On May 19, 2008 at the closing of the Agreement, the former shareholders of AVRS owned approximately 85% of the outstanding common stock of Samoyed, resulting in a change in control.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>For accounting purposes, this acquisition has been treated as a reverse acquisition and recapitalization of AVRS, with Samoyed the legal surviving entity. Since Samoyed had, prior to the recapitalization, minimal assets and limited operations, the recapitalization has been accounted for as the sale of 24,700,008 shares of AVRS common stock for the net liabilities of Samoyed. Therefore, the historical financial information prior to the date of the recapitalization is the financial information of AVRS. Costs of the transaction have been charged to the period in which they are incurred.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>In connection with the Agreement, a shareholder of Samoyed holding an aggregate of 3.5 million shares of Samoyed&#146;s common stock made payments totaling $565,651 since 2008 in lieu of tendering shares to the Company.&#160; The Company received the final payment of $6,000 on February 15, 2012.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Stock Purchase Agreements</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>During the year ended December 31, 2016 the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 5,800,000 shares of the common stock for aggregate proceeds of $45,325, full payment of which was received in the period. During the nine months ended September 30, 2017, the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 9,900,000 shares of the common stock for aggregate proceeds of $49,500, full payment of which was received in the period.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Agreement and Plan of Merger</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On March 25, 2009, the Company entered into an Agreement and Plan of Merger (&#147;Agreement and Plan of Merger&#148;) with its wholly-owned subsidiary, NCC, LLC, a Colorado limited liability company, whereby NCC, LLC merged with and into the Company pursuant to Section 92A.180 of the Nevada Business Corporations Act. Upon consummation of the Agreement and Plan of Merger: (i) NCC, LLC ceased to exist; (ii) the Company&#146;s membership interests in NCC, LLC automatically were canceled or retired and ceased to exist, without any consideration delivered in exchange thereof; (iii) the title to all estate, property rights privileges, powers and franchise assets and/or other rights owned by NCC, LLC became vested in the Company without reversion or impairment; and (iv) all liabilities of any kind of NCC, LLC became vested in the Company.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'><b><i>Commitments and Contingencies</i></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>On April 20, 2015 Advanced Voice Recognition Systems, Inc. (AVRS) entered into a Material Letter Agreement&nbsp;with an unrelated third party&#160; (Third Party) in which they promise to pay to patent legal counsel funds to continue prosecuting Patents on behalf of AVRS.&#160; 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. &#160;AVRS is obligated to pay the funds advanced plus a premium of 10% of the principal amount and a percentage of proceeds received by us from any monetization event involving the patents.&#160; Interest at 2% was accrued and reported at September 30, 2017.&#160; </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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&#146;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.&#160;&#160; AVRS will be responsible for costs not recommended by the Third Party, as well as travel and ordinary business expenses incurred by AVRS.&#160; Except for the advanced costs by the Third Party, AVRS will be responsible for any contingency payments to law firms.&#160; Any and all advanced costs will only become liabilities if successful and will be repaid as percentages of the earnings. &#160;On June 28, 2017 AVRS and the Third Party agreed to terminate the August 20, 2015 Letter Agreement.&#160; AVRS did not incur any material early termination penalties in connection of the early termination of the agreement. As a result of the termination AVRS acquired the liability associated with legal services in connection with the preparation and prosecution of patent applications and related matters before the United States Patent and Trademark Office (&#147;USPTO&#148;).&#160; Additionally, AVRS, in conjunction with Buether, Joe &amp; Carpenter LLC (&#147;BJC&#148;) have identified and are in discussion with two new litigation funding sources.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On November 1, 2016, Advanced Voice Recognition Systems, Inc. (&#147;<u>AVRS</u>&#148;) entered into a Contingent Fee Agreement (the &#147;<u>Agreement</u>&#148;) 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 &#147;<u>Patent Rights</u>&#148;)&#160; Legal representation will handle licensing and litigation activities under the Agreement on a contingent fee basis.&#160; The fee will depend upon whether AVRS recovers any sums by way of licensing, settlement, trial or otherwise with respect to the Patent Rights.&#160; On June 6, 2017 AVRS and Legal Representation revised the Contingent Fee Agreement as it related to the termination of the August 20, 2015 Third Party Letter Agreement.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On November 6, 2017 Advanced Voice Recognition Systems, Inc. (AVRS) was advised that Meyer &amp; Associates L.L.C. (Meyer) filed suit on October 30, 2017 for costs and fees.&#160; At period ending September 30, 2017 $50,832.41 has been accrued.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Advanced Voice Recognition Systems, Inc (AVRS) is in discussion with two potential litigation funding sources.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Unaudited Financial Information</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>The accompanying financial information at September 30, 2017 and for the nine months ended September 30, 2017 and 2016 is unaudited.&#160; In the opinion of management, all normal and recurring adjustments which are necessary to provide a fair presentation of the Company&#146;s financial position at September 30, 2017 and its operating results for the nine months ended September 30, 2017 and 2016 have been made.&#160; 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.&#160; 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&#146;s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the &#147;SEC&#148;) for the year ended December 31, 2016.&#160; The results of operations for the nine months ended September 30, 2017 are not necessarily an indication of operating results to be expected for the year ending December 31, 2017.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Going Concern</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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 $244,865 and no significant revenues.&#160; The Company may be unable to continue as a going concern for a reasonable period of time.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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&#146;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 years ended December 31, 2012 and 2011, the Company&#146;s President loaned or advanced the Company funds for working capital on an &#147;as needed&#148; basis. There is no assurance that these loans or advances will continue in the future.&nbsp;&nbsp; During the twelve months ended December 31, 2016 the Company received an aggregate of $45,325 from the sale of shares in private offerings of its common stock.&#160; During the nine months ended September 30, 2017 the Company received an aggregate of $49,500 from the sale of shares in private offerings of its common stock.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>The Company&#146;s current operations are related to patent monetization and filing of additional patents.&#160; The Company has entered into a letter agreement with Dominion Harbor Group, LLC to provide strategic advisory services to AVRS.&#160; Dominion has agreed to advanced costs up to an aggregate of $10,000,000. The Company and Dominion agreed to terminate the agreement.&#160; The Company did not incur any material early termination penalties.&#160; In addition the Company has revised the Contingent Fee Agreement with Buether Joe &amp; 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.&#160; Currently the Company is in discussion with two potential litigating funding sources.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Use of Estimates</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Basis of Consolidation</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Cash and Cash Equivalents</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>The Company 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, 2017 of $7,492, $9,454 at December 31, 2016 and $6,021 cash at September 30, 2016.&#160; No amounts resulted from cash equivalents.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Financial Instruments</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>The carrying amounts of cash, receivables and current liabilities approximate fair value due to the short-term maturity of the instruments.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Fixed Assets</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Revenue Recognition</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Revenue from the sale of inventory is recognized on the date of sale, title and risk of loss have transferred to the purchaser, the fees are fixed or determinable and collection is reasonably assured. Revenue from the performance of services is recognized when services have been completed and collection is probable. There are no multiple element sales and no history of material returns. The revenue recognition policies relate to operations performed prior to the Company&#146;s reverse acquisition.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Income Taxes</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.&nbsp;&nbsp;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&#146;s financial condition, results of operations, or cash flow.&nbsp;&nbsp;Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740.&nbsp;&nbsp;The Company did not record a cumulative effect adjustment related to the adoption of ASC 740.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><b><i>Research and Development Costs</i></b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Research and development costs are expensed in the period incurred.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Patents, Deferred Costs and Amortization</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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. Costs of $1450 were deferred at June 30, 2017 as a result of the filing of a new patent application.&#160; Deferred costs at September 30,<sup>, </sup>2017 and December 31, 2016 were $2,935 and $1,485 respectively.&#160; If a patent application is denied or expires, the costs incurred are charged to operations in the year the application is denied or expires. The Company amortizes its patents over an estimated useful life of twenty years.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Impairment and Disposal of Long-Lived Assets</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>The Company evaluates the carrying value of its long-lived assets under the provisions of Statement of Financial Accounting Standard (&#147;SFAS&#148;) No. 144, &#147;Accounting for the Impairment or Disposal of Long-Lived Assets&#148; now referred to as ASC 360-10 <i>Property, Plant, and Equipment</i> &#150; &#147;Impairment or Disposal of Long Lived Assets&#148; subsections&#148; . 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&#146; 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.&nbsp;&nbsp;The Company&#146;s last impairment analysis was completed effective December 31, 2016.&#160; Impairment recorded for each of the nine months ended September 30, 2017 and 2016 was $-0-.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Loss per Common Share</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>The Company 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, 2017 and 2016, there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Fair Value of Financial Instruments</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.&nbsp;&nbsp;Changes in assumptions could significantly affect these estimates.&nbsp;&nbsp;We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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:</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td width="72" valign="top" style='width:.75in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:9.0pt'>Level 1:</p> </td> <td valign="top" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Quoted prices in active markets for identical assets or liabilities.</p> </td> </tr> <tr> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td width="72" valign="top" style='width:.75in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:9.0pt'>Level 2:</p> </td> <td valign="top" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.</p> </td> </tr> <tr> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td width="72" valign="top" style='width:.75in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:9.0pt'>Level 3:</p> </td> <td valign="top" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Intangible Assets</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>The Company 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.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On November 13, 1995 the Company filed a patent application with the U.S. Patent and Trademark Office, which was granted on September 28, 1999 as U.S. Patent #5,960,447, &#147;Word Tagging and Editing System for Speech Recognition&#148;. In accordance with 35 U.S.C. 154, the term for the above referenced patent shall be for a period beginning on the date on which the patent issues and ending 20 years from the date on which the application for the patent was filed in the United States. The above referenced U.S. Patent expired on November 13, 2015.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On July 7, 2009, U.S. Patent # 7,558,730, entitled &#147;Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,&#148; was issued by the U.S. Patent and Trademark Office.&nbsp;&nbsp;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.&nbsp;&nbsp;The deferred fees were capitalized during the quarter ended September 30, 2009 and the Company began amortization.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On March 9, 2010, the U.S. Patent and Trademark Office declared interference between the Company as Senior Party and Allvoice Developments, US LLC as Junior Party.&#160; Due to the absence of a decision by the end of 2010, in the fourth quarter of 2010, AVRS impaired 100% of the deferred costs associated with the interference, resulting in a $1,068,860 impairment loss.&#160; On April 27, 2012, the BPAI entered a judgment denying the Company&#146;s motions.&#160; On May 29, 2012, AVRS filed a Request for Rehearing in the BPAI.&#160; On December 19, 2012, the BPAI entered a judgment denying the request for rehearing.&#160; The Company decided not to appeal as additional litigation would be costly and time-consuming and would divert the attention of management and key personnel from business operations.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On May 24, 2011, U.S. Patent #7,949,534, entitled &#147;Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,&#148; 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.&#160; The deferred fees were capitalized during the quarter ended June 30, 2011 and the Company began amortization.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On March 6, 2012, U.S. Patent #8,131,557, entitled &#147;Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,&#148; was issued by the U.S. Patent and Trademark Office.&#160; 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.&#160; The deferred fees were capitalized during the quarter ended March 31, 2012 and the Company began amortization.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On July 30, 2013, U.S. Patent #8,498,871, entitled &#147;Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,&#148; 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.&#160; The deferred fees were capitalized during the quarter ended September 30, 2013 and the Company began amortization.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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 &#147;Speech Recognition and Transcription Among Users Having Heterogeneous Protocols.&#148;&#160; On August 31, 2015, Application 13/928,381 was abandon by the Company.&#160; Deferred costs were charged to operations the quarter ended September 30, 2015.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On August 10, 2015, the Company filed a continuation application with the U.S. Patent and Trademark Office entitled &#147;Speech Recognition and Transcription Among Users Having Heterogeneous Protocols.&#148;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On September 22, 2015, U.S. Patent #9,142,217, entitled &#147;Dynamic Speech Recognition and Transcription Among Users Having Heterogeneous Protocols,&#148; 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.&#160; The deferred fees were capitalized during the quarter ended September 30, 2015 and the Company began amortization.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On July 30, 2015 a continuation application, 14/821,786 was filed with the U.S. Patent and Trademark Office.&#160; Costs of $1,484.67 were deferred during the third quarter of 2015.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On January 6, 2017 the Company filed a continuation in the U.S. Patent and Trademark Office to patent application 14/821,786 resulting in the new application 15/400,732.&#160; Deferred costs of $2935 will remain until the patent is prosecuted and issued.&#160; Costs will be capitalized in the period that the patent is issued.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Amortization at September 30, 2017 is as follows:</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>SCHEDULE OF INTANGIBLE ASSETS</b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="659" style='width:494.0pt;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="251" colspan="2" valign="bottom" style='width:188.0pt;border:none;border-bottom:solid windowtext 1.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><b>Ended December 31, 2016</b></p> </td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>U.S. Patent # </p> </td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'></td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>Carrying Value</b></p> </td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>Amortization</b></p> </td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>Balance </b></p> </td> </tr> <tr style='height:12.75pt'> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>5,960,447</p> </td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>63,247</p> </td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>63,247</p> </td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>--</p> </td> </tr> <tr style='height:12.75pt'> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>7,558,730</p> </td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'></td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>58,277</p> </td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>35,190</p> </td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>23,087</p> </td> </tr> <tr style='height:12.75pt'> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>7,949,534</p> </td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>3,365</p> </td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>1,800</p> </td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>1,565</p> </td> </tr> <tr style='height:12.75pt'> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>8,131,557</p> </td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'></td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>5,092</p> </td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>2,524</p> </td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>2,568</p> </td> </tr> <tr style='height:12.75pt'> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>8,498,871</p> </td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>21,114</p> </td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>8,651</p> </td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>12,463</p> </td> </tr> <tr style='height:12.75pt'> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>9,142,217</p> </td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'></td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>35,068</p> </td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>8,093</p> </td> <td width="11" valign="bottom" style='width:8.0pt;padding:0;height:12.75pt'></td> <td width="125" valign="bottom" style='width:94.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>26,975</p> </td> </tr> <tr style='height:13.5pt'> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:13.5pt'></td> <td width="125" valign="bottom" style='width:94.0pt;background:#D7FFD7;padding:0;height:13.5pt'></td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="125" valign="bottom" style='width:94.0pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>186,163</p> </td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="125" valign="bottom" style='width:94.0pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>119,505</p> </td> <td width="11" valign="bottom" style='width:8.0pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="125" valign="bottom" style='width:94.0pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>66,658</p> </td> </tr> </table> </div> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="676" style='width:506.8pt;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="255" colspan="2" valign="bottom" style='width:191.2pt;border:none;border-bottom:solid windowtext 1.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><b>Ended September 30, 2017</b></p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>U.S. Patent # </p> </td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>Carrying Value</b></p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>Amortization</b></p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>Balance </b></p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>5,960,447</p> </td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>63,247</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>63,247</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>--</p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>7,558,730</p> </td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>58,277</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>38,709</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>19,568</p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>7,949,534</p> </td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>3,365</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>2,034</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>1,331</p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>8,131,557</p> </td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>5,092</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>2,917</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>2,175</p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>8,498,871</p> </td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>21,114</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>10,550</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>10,564</p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>9,142,217</p> </td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>35,068</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>12,140</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>22,928</p> </td> </tr> <tr style='height:13.5pt'> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:13.5pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:13.5pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" valign="bottom" style='width:95.6pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>186,163</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" style='width:95.6pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>129,597</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" style='width:95.6pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>56,566</p> </td> </tr> </table> </div> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>Amortization expense totaled $10,092 and 10,644 for the nine months ended September 30, 2017 and 2016.&#160; Estimated aggregate amortization expense for each of the next five years is as follows:</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>SCHEDULE OF FUTURE AMORTIZATION</b></p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="60%" style='width:60.0%;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="25" valign="bottom" style='width:18.75pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="353" valign="bottom" style='width:264.45pt;padding:0;height:13.5pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>Ending September 30, 2017</p> </td> <td width="25" valign="bottom" style='width:18.75pt;padding:0;height:13.5pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;padding:0;height:13.5pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="25" valign="bottom" style='width:18.75pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>2017</p> </td> <td width="25" valign="bottom" style='width:18.75pt;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>3,362</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>2018</p> </td> <td width="25" valign="bottom" style='width:18.75pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>13,454</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>2019</p> </td> <td width="25" valign="bottom" style='width:18.75pt;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>13,454</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>2020</p> </td> <td width="25" valign="bottom" style='width:18.75pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>13,454</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>2021</p> </td> <td width="25" valign="bottom" style='width:18.75pt;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>12,842</p> </td> </tr> <tr style='height:13.5pt'> <td width="353" valign="bottom" style='width:264.45pt;background:#D7FFD7;padding:0;height:13.5pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>Total</p> </td> <td width="25" valign="bottom" style='width:18.75pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>$</p> </td> <td width="77" valign="bottom" style='width:58.1pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>56,566</p> </td> </tr> </table> </div> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Fixed Assets</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Fixed assets were fully depreciated in the period ending December 31, 2016.&#160; Depreciation expense totaled $552 for the nine months ended September 30, 2016.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>PROPERTY PLANT AND EQUIPMENT</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="47%" style='width:47.9%;border-collapse:collapse'> <tr style='height:25.5pt'> <td width="220" valign="bottom" style='width:164.65pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="24" valign="bottom" style='width:.25in;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="19" valign="bottom" style='width:14.2pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="82" valign="bottom" style='width:61.6pt;background:#D7FFD7;padding:0;height:25.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>December 31, 2016</p> </td> <td width="19" valign="bottom" style='width:14.05pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="220" valign="bottom" style='width:164.65pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="24" valign="bottom" style='width:.25in;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="19" valign="bottom" style='width:14.2pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="82" valign="bottom" style='width:61.6pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="19" valign="bottom" style='width:14.05pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="220" valign="bottom" style='width:164.65pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Computer equipment</p> </td> <td width="24" valign="bottom" style='width:.25in;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="19" valign="bottom" style='width:14.2pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="82" valign="bottom" style='width:61.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>6,627 </p> </td> <td width="19" valign="bottom" style='width:14.05pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="220" valign="bottom" style='width:164.65pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Computer software</p> </td> <td width="24" valign="bottom" style='width:.25in;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="19" valign="bottom" style='width:14.2pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="82" valign="bottom" style='width:61.6pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>3,640 </p> </td> <td width="19" valign="bottom" style='width:14.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="220" valign="bottom" style='width:164.65pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="24" valign="bottom" style='width:.25in;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="19" valign="bottom" style='width:14.2pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="82" valign="bottom" style='width:61.6pt;border:none;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>10,267 </p> </td> <td width="19" valign="bottom" style='width:14.05pt;border:none;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="220" valign="bottom" style='width:164.65pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Less accumulated depreciation</p> </td> <td width="24" valign="bottom" style='width:.25in;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="19" valign="bottom" style='width:14.2pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="82" valign="bottom" style='width:61.6pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>(10,267)</p> </td> <td width="19" valign="bottom" style='width:14.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="220" valign="bottom" style='width:164.65pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Computer software and equipment, net</p> </td> <td width="24" valign="bottom" style='width:.25in;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="19" valign="bottom" style='width:14.2pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="82" valign="bottom" style='width:61.6pt;border:none;border-bottom:double windowtext 1.5pt;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>0 </p> </td> <td width="19" valign="bottom" style='width:14.05pt;border:none;border-bottom:double windowtext 1.5pt;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="60%" style='width:60.0%;border-collapse:collapse'> <tr style='height:25.5pt'> <td width="218" valign="bottom" style='width:163.85pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="23" valign="bottom" style='width:17.2pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="81" valign="bottom" style='width:60.8pt;background:#D7FFD7;padding:0;height:25.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>September 30,</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>&#160;2017</p> </td> <td width="18" valign="bottom" style='width:13.25pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="79" valign="bottom" style='width:59.4pt;background:#D7FFD7;padding:0;height:25.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>September 30,</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>&#160;2016</p> </td> </tr> <tr style='height:12.75pt'> <td width="218" valign="bottom" style='width:163.85pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="23" valign="bottom" style='width:17.2pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="81" valign="bottom" style='width:60.8pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.25pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="79" valign="bottom" style='width:59.4pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="218" valign="bottom" style='width:163.85pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Computer equipment</p> </td> <td width="23" valign="bottom" style='width:17.2pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="81" valign="bottom" style='width:60.8pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>6,627 </p> </td> <td width="18" valign="bottom" style='width:13.25pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>$</p> </td> <td width="79" valign="bottom" style='width:59.4pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>6,627</p> </td> </tr> <tr style='height:12.75pt'> <td width="218" valign="bottom" style='width:163.85pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Computer software</p> </td> <td width="23" valign="bottom" style='width:17.2pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>3,640 </p> </td> <td width="18" valign="bottom" style='width:13.25pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="79" valign="bottom" style='width:59.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>3,640 </p> </td> </tr> <tr style='height:12.75pt'> <td width="218" valign="bottom" style='width:163.85pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="23" valign="bottom" style='width:17.2pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="81" valign="bottom" style='width:60.8pt;border:none;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>10,267 </p> </td> <td width="18" valign="bottom" style='width:13.25pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="79" valign="bottom" style='width:59.4pt;border:none;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>10,267</p> </td> </tr> <tr style='height:12.75pt'> <td width="218" valign="bottom" style='width:163.85pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Less accumulated depreciation</p> </td> <td width="23" valign="bottom" style='width:17.2pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>(10,267)</p> </td> <td width="18" valign="bottom" style='width:13.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="79" valign="bottom" style='width:59.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>(10,082)</p> </td> </tr> <tr style='height:13.5pt'> <td width="218" valign="bottom" style='width:163.85pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Computer software and equipment, net</p> </td> <td width="23" valign="bottom" style='width:17.2pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:double windowtext 1.5pt;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>0</p> </td> <td width="18" valign="bottom" style='width:13.25pt;border:none;border-bottom:double windowtext 1.5pt;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>$</p> </td> <td width="79" valign="bottom" style='width:59.4pt;border:none;border-bottom:double windowtext 1.5pt;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>185</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><em>Related Parties Transactions and Indebtedness</em></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>During the years from 2000 through 2013, certain officers advanced the Company working capital to maintain the Company&#146;s operations. The Company owed the officers $-0- at September 30, 2017 and 2016.&#160; The Company also owed the officers aggregate of $162,382 at September 30, 2017 and December 31, 2016 for accrued payroll.&#160; During the period of nine months ending September 30, 2017, and September 30, 2016 the Company paid gross payroll of $13,623 and $3,871 to the CEO.&#160; During the nine month period ending September 30, 2017, AVRS completed Stock Purchase Agreements totaling 4,300,000 shares of AVRS stock to one shareholder.&#160; All shares were paid in the period ending September 30, 2017, for and total amount of 21,500.&#160; Prior to the purchase the shareholder owned 8.32% of the issued and outstanding stock. At period ending September 30, 2017 the shareholder owned 9.77% of the issued and outstanding stock.&#160; </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>A reconciliation of the U.S. statutory federal income tax rate to the effective rate is as follows.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>INCOME TAXES</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="60%" style='width:60.0%'> <tr> <td colspan="2" valign="bottom" style='background:#D7FFD7;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td colspan="4" valign="bottom" style='background:#D7FFD7;padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>December 31,</b></p> </td> </tr> <tr> <td colspan="2" valign="bottom" style='padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>2016</b></p> </td> <td valign="bottom" style='padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='padding:0'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>2015</b></p> </td> </tr> <tr> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> </tr> <tr> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>U.S. federal statutory graduated rate</p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp; </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>34.00%</p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>34.00%</p> </td> </tr> <tr> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>State income tax rate, net of federal benefit</p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp; </p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>0.00%</p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>0.00%</p> </td> </tr> <tr> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Rent &amp;services</p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp; </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>-16.06%</p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>-3.40%</p> </td> </tr> <tr> <td valign="bottom" style='background:#D7FFD7;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Costs capitalized under Section 195</p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp; </p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>-17.94%</p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0in 0in 1.5pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>-30.60%</p> </td> </tr> <tr> <td colspan="2" valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> </tr> <tr> <td valign="bottom" style='background:#D7FFD7;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effective rate</p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp; </p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>0.00%</p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0in 0in 3.0pt 0in'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='background:#D7FFD7;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>0.00%</p> </td> </tr> <tr> <td colspan="2" valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td colspan="2" valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td valign="bottom" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> </tr> </table> </div> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>The Company is considered a start-up company for income tax purposes. As of September 30, 2017, 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, 2017.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>Beginning March 31, 2010, through September 30, 2017, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of $250,000, at all FDIC-insured institutions.&#160; On September 30, 2017, the Company had cash balances at one FDIC insured financial institution of $7,492 in non-interest bearing accounts that were fully insured by the FDIC.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>The Company has issued shares of its common stock pursuant to certain agreements as described in Note 1.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>AVRS, in conjunction with legal representative Buether, Joe &amp; Carpenter, LLC have identified and are in discussion with two separate litigation funding sources.&#160; When an agreement is finalized it will replace the terminated financing Agreement with Dominion Harbor Group.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>Subsequent to the period end, the Company entered into one Stock Purchase Agreement for 875,000 restricted shares of Company stock.</p> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>On November 6, 2017 Advanced Voice Recognition Systems, Inc. (AVRS) received notice that Meyers &amp; Associate, LLC filed Complaint number 2017CV32482 in Arapahoe County District Court on October 30, 2017.&#160; The Complaint relates to purported legal fees owned by AVRS.&#160; At this time we cannot predict the outcome and intend to defend.</p> 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 <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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, 2017 of $7,492, $9,454 at December 31, 2016 and $6,021 cash at September 30, 2016.&#160; No amounts resulted from cash equivalents.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>The carrying amounts of cash, receivables and current liabilities approximate fair value due to the short-term maturity of the instruments.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Revenue from the sale of inventory is recognized on the date of sale, title and risk of loss have transferred to the purchaser, the fees are fixed or determinable and collection is reasonably assured. Revenue from the performance of services is recognized when services have been completed and collection is probable. There are no multiple element sales and no history of material returns. The revenue recognition policies relate to operations performed prior to the Company&#146;s reverse acquisition.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.&nbsp;&nbsp;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&#146;s financial condition, results of operations, or cash flow.&nbsp;&nbsp;Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740.&nbsp;&nbsp;The Company did not record a cumulative effect adjustment related to the adoption of ASC 740.</p> 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. Costs of $1450 were deferred at June 30, 2017 as a result of the filing of a new patent application.&#160; Deferred costs at September 30,<sup>, </sup>2017 and December 31, 2016 were $2,935 and $1,485 respectively.&#160; If a patent application is denied or expires, the costs incurred are charged to operations in the year the application is denied or expires. The Company amortizes its patents over an estimated useful life of twenty years. <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>The Company evaluates the carrying value of its long-lived assets under the provisions of Statement of Financial Accounting Standard (&#147;SFAS&#148;) No. 144, &#147;Accounting for the Impairment or Disposal of Long-Lived Assets&#148; now referred to as ASC 360-10 <i>Property, Plant, and Equipment</i> &#150; &#147;Impairment or Disposal of Long Lived Assets&#148; subsections&#148; . 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&#146; 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.&nbsp;&nbsp;The Company&#146;s last impairment analysis was completed effective December 31, 2016.&#160; Impairment recorded for each of the nine months ended September 30, 2017 and 2016 was $-0-.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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, 2017 and 2016, there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.&nbsp;&nbsp;Changes in assumptions could significantly affect these estimates.&nbsp;&nbsp;We do not hold or issue financial instruments for trading purposes, nor do we utilize derivative instruments.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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:</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td width="72" valign="top" style='width:.75in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:9.0pt'>Level 1:</p> </td> <td valign="top" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Quoted prices in active markets for identical assets or liabilities.</p> </td> </tr> <tr> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td width="72" valign="top" style='width:.75in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:9.0pt'>Level 2:</p> </td> <td valign="top" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Quoted prices in active markets for similar assets and liabilities and inputs that are observable for the asset or liability.</p> </td> </tr> <tr> <td width="12" valign="top" style='width:9.0pt;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp; </p> </td> <td width="72" valign="top" style='width:.75in;padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;margin-left:9.0pt'>Level 3:</p> </td> <td valign="top" style='padding:0'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.</p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>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.</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="676" style='width:506.8pt;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="255" colspan="2" valign="bottom" style='width:191.2pt;border:none;border-bottom:solid windowtext 1.0pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'><b>Ended September 30, 2017</b></p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>U.S. Patent # </p> </td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>Carrying Value</b></p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>Amortization</b></p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'><b>Balance </b></p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>5,960,447</p> </td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>63,247</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>63,247</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>--</p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>7,558,730</p> </td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>58,277</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>38,709</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>19,568</p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>7,949,534</p> </td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>3,365</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>2,034</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>1,331</p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>8,131,557</p> </td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>5,092</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>2,917</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>2,175</p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>8,498,871</p> </td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>21,114</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>10,550</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>10,564</p> </td> </tr> <tr style='height:12.75pt'> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>9,142,217</p> </td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'></td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" valign="bottom" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>35,068</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>12,140</p> </td> <td width="13" valign="bottom" style='width:9.6pt;padding:0;height:12.75pt'></td> <td width="127" style='width:95.6pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>22,928</p> </td> </tr> <tr style='height:13.5pt'> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:13.5pt'></td> <td width="127" valign="bottom" style='width:95.6pt;background:#D7FFD7;padding:0;height:13.5pt'></td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" valign="bottom" style='width:95.6pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>186,163</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" style='width:95.6pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>129,597</p> </td> <td width="13" valign="bottom" style='width:9.6pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="127" style='width:95.6pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 2.25pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>56,566</p> </td> </tr> </table> </div> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="60%" style='width:60.0%;border-collapse:collapse'> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="25" valign="bottom" style='width:18.75pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="353" valign="bottom" style='width:264.45pt;padding:0;height:13.5pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>Ending September 30, 2017</p> </td> <td width="25" valign="bottom" style='width:18.75pt;padding:0;height:13.5pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;padding:0;height:13.5pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="25" valign="bottom" style='width:18.75pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>2017</p> </td> <td width="25" valign="bottom" style='width:18.75pt;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>3,362</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>2018</p> </td> <td width="25" valign="bottom" style='width:18.75pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>13,454</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>2019</p> </td> <td width="25" valign="bottom" style='width:18.75pt;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>13,454</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>2020</p> </td> <td width="25" valign="bottom" style='width:18.75pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>13,454</p> </td> </tr> <tr style='height:12.75pt'> <td width="353" valign="bottom" style='width:264.45pt;padding:0;height:12.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>2021</p> </td> <td width="25" valign="bottom" style='width:18.75pt;padding:0;height:12.75pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>&nbsp;</p> </td> <td width="77" valign="bottom" style='width:58.1pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>12,842</p> </td> </tr> <tr style='height:13.5pt'> <td width="353" valign="bottom" style='width:264.45pt;background:#D7FFD7;padding:0;height:13.5pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>Total</p> </td> <td width="25" valign="bottom" style='width:18.75pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="left" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:left'>$</p> </td> <td width="77" valign="bottom" style='width:58.1pt;border-top:solid windowtext 1.0pt;border-left:none;border-bottom:double windowtext 1.5pt;border-right:none;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>56,566</p> </td> </tr> </table> </div> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="60%" style='width:60.0%;border-collapse:collapse'> <tr style='height:25.5pt'> <td width="218" valign="bottom" style='width:163.85pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="23" valign="bottom" style='width:17.2pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="81" valign="bottom" style='width:60.8pt;background:#D7FFD7;padding:0;height:25.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>September 30,</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>&#160;2017</p> </td> <td width="18" valign="bottom" style='width:13.25pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:25.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="79" valign="bottom" style='width:59.4pt;background:#D7FFD7;padding:0;height:25.5pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>September 30,</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:center'>&#160;2016</p> </td> </tr> <tr style='height:12.75pt'> <td width="218" valign="bottom" style='width:163.85pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="23" valign="bottom" style='width:17.2pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="81" valign="bottom" style='width:60.8pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.25pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="79" valign="bottom" style='width:59.4pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> </tr> <tr style='height:12.75pt'> <td width="218" valign="bottom" style='width:163.85pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Computer equipment</p> </td> <td width="23" valign="bottom" style='width:17.2pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="81" valign="bottom" style='width:60.8pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>6,627 </p> </td> <td width="18" valign="bottom" style='width:13.25pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>$</p> </td> <td width="79" valign="bottom" style='width:59.4pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>6,627</p> </td> </tr> <tr style='height:12.75pt'> <td width="218" valign="bottom" style='width:163.85pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Computer software</p> </td> <td width="23" valign="bottom" style='width:17.2pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>3,640 </p> </td> <td width="18" valign="bottom" style='width:13.25pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="79" valign="bottom" style='width:59.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>3,640 </p> </td> </tr> <tr style='height:12.75pt'> <td width="218" valign="bottom" style='width:163.85pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="23" valign="bottom" style='width:17.2pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="81" valign="bottom" style='width:60.8pt;border:none;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>10,267 </p> </td> <td width="18" valign="bottom" style='width:13.25pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="79" valign="bottom" style='width:59.4pt;border:none;background:#D7FFD7;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>10,267</p> </td> </tr> <tr style='height:12.75pt'> <td width="218" valign="bottom" style='width:163.85pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Less accumulated depreciation</p> </td> <td width="23" valign="bottom" style='width:17.2pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>(10,267)</p> </td> <td width="18" valign="bottom" style='width:13.25pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="79" valign="bottom" style='width:59.4pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0;height:12.75pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>(10,082)</p> </td> </tr> <tr style='height:13.5pt'> <td width="218" valign="bottom" style='width:163.85pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>Computer software and equipment, net</p> </td> <td width="23" valign="bottom" style='width:17.2pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:13.5pt'> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;'>$</p> </td> <td width="81" valign="bottom" style='width:60.8pt;border:none;border-bottom:double windowtext 1.5pt;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>0</p> </td> <td width="18" valign="bottom" style='width:13.25pt;border:none;border-bottom:double windowtext 1.5pt;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>&nbsp;</p> </td> <td width="18" valign="bottom" style='width:13.4pt;background:#D7FFD7;padding:0;height:13.5pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-align:right'>$</p> </td> <td width="79" valign="bottom" 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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:

September 24, 2017

 

 

Signature:

/s/ Walter Geldenhuys

 

 

Walter Geldenhuys

Title:

President, Chief Executive Officer

 

 

 

EX-31 9 avrs_10q31x2.htm EXHIBIT

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:

September 24, 2018

 

 

Signature:

/s/ Walter Geldenhuys

 

 

Walter Geldenhuys

Title:

Chief Financial Officer

 

 

 

EX-32 10 avrs_10q32x1.htm EXHIBIT

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, 2017, 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

September 24, 2018

 

 

 

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Document and Entity Information - USD ($)
9 Months Ended
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Jun. 30, 2017
Document and Entity Information:    
Entity Registrant Name Advanced Voice Recognition Systems, Inc.  
Document Type 10-Q  
Document Period End Date Sep. 30, 2017  
Amendment Flag false  
Entity Central Index Key 0001342936  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding 240,295,268  
Entity Public Float   $ 1,913,992
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Document Fiscal Year Focus 2017  
Document Fiscal Period Focus Q3  
Trading Symbol avoi  
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Dec. 31, 2016
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Cash and Cash Equivalents, at Carrying Value $ 7,492 $ 9,454
Assets, Current 7,492 9,454
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Retained Earnings (Accumulated Deficit ) (8,266,533) (8,190,269)
Stockholders Equity (244,865) (218,101)
Liabilities and Equity $ 66,993 $ 77,597
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Statements of Operations - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2017
Sep. 30, 2016
Operating Expenses        
Compensation $ 4,863   $ 13,623 $ 3,871
Professional fees 6,690 $ 3,036 36,021 20,749
General and Administrative Expense 6,356 7,707 16,871 19,098
Travel 42   298 319
Other General Expense 357 360 1,886 1,165
Operating Expenses 18,308 11,103 68,699 45,202
Operating Income (Loss) (18,308) (11,103) (68,699) (45,202)
Interest and Debt Expense        
Interest Expense (2,900) (1,513) (7,565) (4,387)
Interest and Debt Expense (2,900) (1,513) (7,565) (4,387)
Net Income (Loss) $ (21,208) $ (12,616) $ (76,264) $ (49,589)
Weighted Average Number of Shares Outstanding, Basic 240,295,268 228,058,601 235,822,675 227,016,009
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Statement of Cash Flows - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Net Cash Provided by (Used in) Operating Activities    
Net Income (Loss) $ (76,264) $ (49,589)
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities    
Amortization 10,092 10,644
Increase (Decrease) in Operating Liabilities    
Increase (Decrease) in Accounts Payable and Accrued Liabilities 16,160 5,694
Net Cash Provided by (Used in) Operating Activities (50,012) (33,251)
Net Cash Provided by (Used in) Investing Activities    
Payments for deferred costs (1,450)  
Net Cash Provided by (Used in) Investing Activities (1,450)  
Net Cash Provided by (Used in) Financing Activities    
Proceeds from Issuance of Common Stock 49,500 30,875
Payments on advances from shareholder   (600)
Net Cash Provided by (Used in) Financing Activities 49,500 30,275
Cash and Cash Equivalents, Period Increase (Decrease) (1,962) (2,976)
Cash and Cash Equivalents, at Carrying Value 9,454 8,997
Cash and Cash Equivalents, at Carrying Value 7,492 6,021
Supplemental Disclosure of Cash Flow Information:    
Interest $ 7,565 $ 4,387
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Note 1. Nature of Operations
9 Months Ended
Sep. 30, 2017
Notes  
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 Exchange Agreement

 

On April 28, 2008, the Company entered into a Stock Exchange Agreement (“the Agreement”) with Samoyed Energy Corp., a Nevada corporation (“Samoyed”), which resulted in a reverse acquisition.  The Agreement provided for the reorganization of AVRS with Samoyed. In connection with the Agreement, Samoyed acquired all of the issued and outstanding common shares of AVRS in exchange for 140 million shares of Samoyed’s common stock.  On May 19, 2008 at the closing of the Agreement, the former shareholders of AVRS owned approximately 85% of the outstanding common stock of Samoyed, resulting in a change in control.

 

For accounting purposes, this acquisition has been treated as a reverse acquisition and recapitalization of AVRS, with Samoyed the legal surviving entity. Since Samoyed had, prior to the recapitalization, minimal assets and limited operations, the recapitalization has been accounted for as the sale of 24,700,008 shares of AVRS common stock for the net liabilities of Samoyed. Therefore, the historical financial information prior to the date of the recapitalization is the financial information of AVRS. Costs of the transaction have been charged to the period in which they are incurred.

 

In connection with the Agreement, a shareholder of Samoyed holding an aggregate of 3.5 million shares of Samoyed’s common stock made payments totaling $565,651 since 2008 in lieu of tendering shares to the Company.  The Company received the final payment of $6,000 on February 15, 2012.

 

Stock Purchase Agreements

 

During the year ended December 31, 2016 the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 5,800,000 shares of the common stock for aggregate proceeds of $45,325, full payment of which was received in the period. During the nine months ended September 30, 2017, the Company entered into Stock Purchase Agreements for the private sale of an aggregate of 9,900,000 shares of the common stock for aggregate proceeds of $49,500, full payment of which was received in the period.

 

Agreement and Plan of Merger

 

On March 25, 2009, the Company entered into an Agreement and Plan of Merger (“Agreement and Plan of Merger”) with its wholly-owned subsidiary, NCC, LLC, a Colorado limited liability company, whereby NCC, LLC merged with and into the Company pursuant to Section 92A.180 of the Nevada Business Corporations Act. Upon consummation of the Agreement and Plan of Merger: (i) NCC, LLC ceased to exist; (ii) the Company’s membership interests in NCC, LLC automatically were canceled or retired and ceased to exist, without any consideration delivered in exchange thereof; (iii) the title to all estate, property rights privileges, powers and franchise assets and/or other rights owned by NCC, LLC became vested in the Company without reversion or impairment; and (iv) all liabilities of any kind of NCC, LLC became vested in the Company.

 

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.  AVRS is obligated to pay the funds advanced plus a premium of 10% of the principal amount and a percentage of proceeds received by us from any monetization event involving the patents.  Interest at 2% was accrued and reported at September 30, 2017. 

 

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 and will be repaid as percentages of the earnings.  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. As a result of the termination AVRS acquired the liability associated with legal services in connection with the preparation and prosecution of patent applications and related matters before the United States Patent and Trademark Office (“USPTO”).  Additionally, AVRS, in conjunction with Buether, Joe & Carpenter LLC (“BJC”) have identified and are in discussion with two new litigation funding sources.

 

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 Third Party Letter Agreement.

 

On November 6, 2017 Advanced Voice Recognition Systems, Inc. (AVRS) was advised that Meyer & Associates L.L.C. (Meyer) filed suit on October 30, 2017 for costs and fees.  At period ending September 30, 2017 $50,832.41 has been accrued.

 

Advanced Voice Recognition Systems, Inc (AVRS) is in discussion with two potential litigation funding sources.

XML 16 R6.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies
9 Months Ended
Sep. 30, 2017
Notes  
Note 2. Significant Accounting Policies

Unaudited Financial Information

 

The accompanying financial information at September 30, 2017 and for the nine months ended September 30, 2017 and 2016 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, 2017 and its operating results for the nine months ended September 30, 2017 and 2016 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, 2016.  The results of operations for the nine months ended September 30, 2017 are not necessarily an indication of operating results to be expected for the year ending December 31, 2017.

 

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 $244,865 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 years ended December 31, 2012 and 2011, the Company’s President loaned or advanced the Company funds for working capital on an “as needed” basis. There is no assurance that these loans or advances will continue in the future.   During the twelve months ended December 31, 2016 the Company received an aggregate of $45,325 from the sale of shares in private offerings of its common stock.  During the nine months ended September 30, 2017 the Company received an aggregate of $49,500 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. The Company and Dominion agreed to terminate the 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.  Currently the Company is in discussion with two potential litigating funding sources.

 

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, 2017 of $7,492, $9,454 at December 31, 2016 and $6,021 cash at September 30, 2016.  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.

 

Revenue Recognition

 

Revenue from the sale of inventory is recognized on the date of sale, title and risk of loss have transferred to the purchaser, the fees are fixed or determinable and collection is reasonably assured. Revenue from the performance of services is recognized when services have been completed and collection is probable. There are no multiple element sales and no history of material returns. The revenue recognition policies relate to operations performed prior to the Company’s reverse acquisition.

 

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. Costs of $1450 were deferred at June 30, 2017 as a result of the filing of a new patent application.  Deferred costs at September 30,, 2017 and December 31, 2016 were $2,935 and $1,485 respectively.  If a patent application is denied or expires, the costs incurred are charged to operations in the year the application is denied or expires. 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, 2016.  Impairment recorded for each of the nine months ended September 30, 2017 and 2016 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, 2017 and 2016, 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.

XML 17 R7.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 3. Intangible and Fixed Assets
9 Months Ended
Sep. 30, 2017
Notes  
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 November 13, 1995 the Company filed a patent application with the U.S. Patent and Trademark Office, which was granted on September 28, 1999 as U.S. Patent #5,960,447, “Word Tagging and Editing System for Speech Recognition”. In accordance with 35 U.S.C. 154, the term for the above referenced patent shall be for a period beginning on the date on which the patent issues and ending 20 years from the date on which the application for the patent was filed in the United States. The above referenced U.S. Patent expired on November 13, 2015.

 

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 March 9, 2010, the U.S. Patent and Trademark Office declared interference between the Company as Senior Party and Allvoice Developments, US LLC as Junior Party.  Due to the absence of a decision by the end of 2010, in the fourth quarter of 2010, AVRS impaired 100% of the deferred costs associated with the interference, resulting in a $1,068,860 impairment loss.  On April 27, 2012, the BPAI entered a judgment denying the Company’s motions.  On May 29, 2012, AVRS filed a Request for Rehearing in the BPAI.  On December 19, 2012, the BPAI entered a judgment denying the request for rehearing.  The Company decided not to appeal as additional litigation would be costly and time-consuming and would divert the attention of management and key personnel from business operations.

 

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 abandon by the Company.  Deferred costs were charged to operations the quarter ended September 30, 2015.

 

On August 10, 2015, the Company filed a continuation application with the U.S. Patent and Trademark Office entitled “Speech Recognition and Transcription Among Users Having Heterogeneous Protocols.”

 

On September 22, 2015, U.S. Patent #9,142,217, 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 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 July 30, 2015 a continuation application, 14/821,786 was filed with the U.S. Patent and Trademark Office.  Costs of $1,484.67 were deferred during the third quarter of 2015.

 

On January 6, 2017 the Company filed a continuation in the U.S. Patent and Trademark Office to patent application 14/821,786 resulting in the new application 15/400,732.  Deferred costs of $2935 will remain until the patent is prosecuted and issued.  Costs will be capitalized in the period that the patent is issued.

 

Amortization at September 30, 2017 is as follows:

 

SCHEDULE OF INTANGIBLE ASSETS

 

Ended December 31, 2016

U.S. Patent #

Carrying Value

Amortization

Balance

5,960,447

$

63,247

$

63,247

$

--

7,558,730

58,277

35,190

23,087

7,949,534

3,365

1,800

1,565

8,131,557

5,092

2,524

2,568

8,498,871

21,114

8,651

12,463

9,142,217

35,068

8,093

26,975

$

186,163

$

119,505

$

66,658

 

 

Ended September 30, 2017

U.S. Patent #

Carrying Value

Amortization

Balance

5,960,447

$

63,247

$

63,247

$

--

7,558,730

58,277

38,709

19,568

7,949,534

3,365

2,034

1,331

8,131,557

5,092

2,917

2,175

8,498,871

21,114

10,550

10,564

9,142,217

35,068

12,140

22,928

$

186,163

$

129,597

$

56,566

 

Amortization expense totaled $10,092 and 10,644 for the nine months ended September 30, 2017 and 2016.  Estimated aggregate amortization expense for each of the next five years is as follows:

 

SCHEDULE OF FUTURE AMORTIZATION

 

 

 

 

Ending September 30, 2017

 

 

 

 

 

2017

 

3,362

2018

 

13,454

2019

 

13,454

2020

 

13,454

2021

 

12,842

Total

$

56,566

 

Fixed Assets

 

Fixed assets were fully depreciated in the period ending December 31, 2016.  Depreciation expense totaled $552 for the nine months ended September 30, 2016.

 

PROPERTY PLANT AND EQUIPMENT

 

 

 

 

December 31, 2016

 

 

 

 

 

 

Computer equipment

 

$

6,627

 

Computer software

 

 

3,640

 

 

 

 

10,267

 

Less accumulated depreciation

 

 

(10,267)

 

Computer software and equipment, net

 

$

0

 

 

 

 

 

 

September 30,

 2017

 

 

September 30,

 2016

 

 

 

 

 

 

 

Computer equipment

 

$

6,627

 

$

6,627

Computer software

 

 

3,640

 

 

3,640

 

 

 

10,267

 

 

10,267

Less accumulated depreciation

 

 

(10,267)

 

 

(10,082)

Computer software and equipment, net

 

$

0

 

$

185

XML 18 R8.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 4. Related Party Transactions
9 Months Ended
Sep. 30, 2017
Notes  
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 $-0- at September 30, 2017 and 2016.  The Company also owed the officers aggregate of $162,382 at September 30, 2017 and December 31, 2016 for accrued payroll.  During the period of nine months ending September 30, 2017, and September 30, 2016 the Company paid gross payroll of $13,623 and $3,871 to the CEO.  During the nine month period ending September 30, 2017, AVRS completed Stock Purchase Agreements totaling 4,300,000 shares of AVRS stock to one shareholder.  All shares were paid in the period ending September 30, 2017, for and total amount of 21,500.  Prior to the purchase the shareholder owned 8.32% of the issued and outstanding stock. At period ending September 30, 2017 the shareholder owned 9.77% of the issued and outstanding stock. 

XML 19 R9.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 5. Income Taxes
9 Months Ended
Sep. 30, 2017
Notes  
Note 5. Income Taxes

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

 

INCOME TAXES

 

 

December 31,

 

2016

 

2015

 

 

 

 

 

 

U.S. federal statutory graduated rate

 

 

34.00%

 

34.00%

State income tax rate, net of federal benefit

 

 

0.00%

 

0.00%

Rent &services

 

 

-16.06%

 

-3.40%

Costs capitalized under Section 195

 

 

-17.94%

 

-30.60%

 

 

 

 

                                   Effective rate

 

 

0.00%

 

0.00%

 

 

 

 

 

The Company is considered a start-up company for income tax purposes. As of September 30, 2017, 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, 2017.

XML 20 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 6. Concentration of Risk
9 Months Ended
Sep. 30, 2017
Notes  
Note 6. Concentration of Risk

Beginning March 31, 2010, through September 30, 2017, all noninterest-bearing transaction accounts are fully insured, regardless of the balance of $250,000, at all FDIC-insured institutions.  On September 30, 2017, the Company had cash balances at one FDIC insured financial institution of $7,492 in non-interest bearing accounts that were fully insured by the FDIC.

XML 21 R11.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 7. Stockholder Equity / (deficit)
9 Months Ended
Sep. 30, 2017
Notes  
Note 7. Stockholder Equity / (deficit)

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

XML 22 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 8. Subsequent Events
9 Months Ended
Sep. 30, 2017
Notes  
Note 8. Subsequent Events

AVRS, in conjunction with legal representative Buether, Joe & Carpenter, LLC have identified and are in discussion with two separate litigation funding sources.  When an agreement is finalized it will replace the terminated financing Agreement with Dominion Harbor Group.

 

Subsequent to the period end, the Company entered into one Stock Purchase Agreement for 875,000 restricted shares of Company stock.

 

On November 6, 2017 Advanced Voice Recognition Systems, Inc. (AVRS) received notice that Meyers & Associate, LLC filed Complaint number 2017CV32482 in Arapahoe County District Court on October 30, 2017.  The Complaint relates to purported legal fees owned by AVRS.  At this time we cannot predict the outcome and intend to defend.

XML 23 R13.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies: Use of Estimates (Policies)
9 Months Ended
Sep. 30, 2017
Policies  
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
XML 24 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies: Basis of Consolidation (Policies)
9 Months Ended
Sep. 30, 2017
Policies  
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.

XML 25 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies: Cash and Cash Equivalents (Policies)
9 Months Ended
Sep. 30, 2017
Policies  
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, 2017 of $7,492, $9,454 at December 31, 2016 and $6,021 cash at September 30, 2016.  No amounts resulted from cash equivalents.

XML 26 R16.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies: Financial Instruments (Policies)
9 Months Ended
Sep. 30, 2017
Policies  
Financial Instruments

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

XML 27 R17.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies: Fixed Assets (Policies)
9 Months Ended
Sep. 30, 2017
Policies  
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.

XML 28 R18.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies: Revenue Recognition (Policies)
9 Months Ended
Sep. 30, 2017
Policies  
Revenue Recognition

Revenue from the sale of inventory is recognized on the date of sale, title and risk of loss have transferred to the purchaser, the fees are fixed or determinable and collection is reasonably assured. Revenue from the performance of services is recognized when services have been completed and collection is probable. There are no multiple element sales and no history of material returns. The revenue recognition policies relate to operations performed prior to the Company’s reverse acquisition.

XML 29 R19.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies: Income Taxes (Policies)
9 Months Ended
Sep. 30, 2017
Policies  
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.

XML 30 R20.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies: Patents, Deferred Costs and Amortization (Policies)
9 Months Ended
Sep. 30, 2017
Policies  
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. Costs of $1450 were deferred at June 30, 2017 as a result of the filing of a new patent application.  Deferred costs at September 30,, 2017 and December 31, 2016 were $2,935 and $1,485 respectively.  If a patent application is denied or expires, the costs incurred are charged to operations in the year the application is denied or expires. The Company amortizes its patents over an estimated useful life of twenty years.
XML 31 R21.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies: Impairment and Disposal of Long-lived Assets (Policies)
9 Months Ended
Sep. 30, 2017
Policies  
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, 2016.  Impairment recorded for each of the nine months ended September 30, 2017 and 2016 was $-0-.

XML 32 R22.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies: Loss Per Common Share (Policies)
9 Months Ended
Sep. 30, 2017
Policies  
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, 2017 and 2016, there were no variances between the basic and diluted loss per share as there were no potentially dilutive securities outstanding.

XML 33 R23.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 2. Significant Accounting Policies: Fair Value of Financial Instruments (Policies)
9 Months Ended
Sep. 30, 2017
Policies  
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.

XML 34 R24.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets by Major Class (Tables)
9 Months Ended
Sep. 30, 2017
Tables/Schedules  
Schedule of Finite-Lived Intangible Assets by Major Class

Ended September 30, 2017

U.S. Patent #

Carrying Value

Amortization

Balance

5,960,447

$

63,247

$

63,247

$

--

7,558,730

58,277

38,709

19,568

7,949,534

3,365

2,034

1,331

8,131,557

5,092

2,917

2,175

8,498,871

21,114

10,550

10,564

9,142,217

35,068

12,140

22,928

$

186,163

$

129,597

$

56,566

XML 35 R25.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Tables)
9 Months Ended
Sep. 30, 2017
Tables/Schedules  
Schedule of Finite-Lived Intangible Assets Future Amortization Expense

 

 

 

Ending September 30, 2017

 

 

 

 

 

2017

 

3,362

2018

 

13,454

2019

 

13,454

2020

 

13,454

2021

 

12,842

Total

$

56,566

XML 36 R26.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 3. Intangible and Fixed Assets: Property Plant and Equipment (Tables)
9 Months Ended
Sep. 30, 2017
Tables/Schedules  
Property Plant and Equipment

 

 

 

September 30,

 2017

 

 

September 30,

 2016

 

 

 

 

 

 

 

Computer equipment

 

$

6,627

 

$

6,627

Computer software

 

 

3,640

 

 

3,640

 

 

 

10,267

 

 

10,267

Less accumulated depreciation

 

 

(10,267)

 

 

(10,082)

Computer software and equipment, net

 

$

0

 

$

185

XML 37 R27.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets by Major Class (Details) - USD ($)
Sep. 30, 2017
Dec. 31, 2016
Carrying Value $ 186,163  
Amortization 129,597  
Patent, net 56,566 $ 66,658
5,960,447    
Carrying Value 63,247  
Amortization 63,247  
7,558,730    
Carrying Value 58,277  
Amortization 38,709  
Patent, net 19,568  
7,949,534    
Carrying Value 3,365  
Amortization 2,034  
Patent, net 1,331  
8,131,557    
Carrying Value 5,092  
Amortization 2,917  
Patent, net 2,175  
8,498,871    
Carrying Value 21,114  
Amortization 10,550  
Patent, net 10,564  
9,142,217    
Carrying Value 35,068  
Amortization 12,140  
Patent, net $ 22,928  
XML 38 R28.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 3. Intangible and Fixed Assets (Details) - USD ($)
9 Months Ended
Sep. 30, 2017
Sep. 30, 2016
Details    
Finite-Lived Intangible Assets Amortization Expense $ 10,092 $ 10,644
Depreciation Expense   $ 552
XML 39 R29.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 3. Intangible and Fixed Assets: Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($)
Dec. 31, 2017
Sep. 30, 2017
Dec. 31, 2016
Details      
Future Amortization Expense, Year One $ 3,362    
2018 13,454    
2019 13,454    
2020 13,454    
2021 $ 12,842    
Total   $ 56,566 $ 66,658
XML 40 R30.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 3. Intangible and Fixed Assets: Property Plant and Equipment (Details) - USD ($)
Sep. 30, 2017
Sep. 30, 2016
Details    
Computer equipment $ 6,627 $ 6,627
Computer software 3,640 3,640
Less accumulated depreciation $ 10,267 $ 10,267
XML 41 R31.htm IDEA: XBRL DOCUMENT v3.10.0.1
Note 6. Income Taxes (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Details    
federal statutory graduated rate 34.00% 34.00%
State income tax rate, net of federal benefit 0.00% 0.00%
Rent & Services (16.06%) (3.40%)
Costs capitalized under Section 195 (17.94%) (30.60%)
Effective rate 0.00% 0.00%
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